Opioids Maker Teva Agrees to $4.25 Billion Settlement
Preliminary agreement would provide cash, naloxone to address opioids crisis
MADISON, Wis. – The Wisconsin Department of Justice (DOJ) has reached an agreement in principle on key financial terms with opioid maker Teva, which would provide up to $4.25 billion to participating states and local governments.
“Our efforts to pursue accountability from companies whose unlawful conduct contributed to the opioid crisis continue,” said Attorney General Josh Kaul. “This agreement, if finalized, will mark another significant step forward in bringing resources to Wisconsin for fighting this epidemic.”
Teva, an Israel-based drug manufacturer, makes Actiq and Fentora, which are branded fentanyl products for cancer pain, and a number of generic opioids including oxycodone.
States alleged that Teva:
- promoted potent, rapid-onset fentanyl products for use by non-cancer patients;
- deceptively marketed opioids by downplaying the risk of addiction and overstating their benefits, including encouraging the idea that signs of addiction are actually “pseudoaddiction” treated by prescribing more opioids; and
- failed to comply with suspicious order monitoring requirements along with its distributor, Anda.
The parties have agreed on the following financial terms:
- Teva will pay a maximum of $4.25 billion in cash over 13 years. This figure includes amounts Teva has already agreed to pay under settlements with individual States, funds for participating States and subdivisions, and the $240 million of cash in lieu of product described below.
- As part of the financial term, Teva will provide up to $1.2 billion in generic naloxone (valued at Wholesale Acquisition Cost or WAC) over a 10-year period or $240 million of cash in lieu of product, at each State’s election. Naloxone is used to counteract overdoses.
- The settlement will build on the existing framework that states and subdivisions have created through other recent opioid settlements.
A final settlement remains contingent on agreement on critical business practice changes and transparency requirements.
Along with DOJ, the negotiations are being led by the following states: California, Illinois, Iowa, Massachusetts, New York, North Carolina, Pennsylvania, Tennessee, Texas, Vermont, and Virginia. While New York is among the 12 states that negotiated this proposed settlement framework, Teva and New York are still engaged in further negotiations.
View the press release here.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. It has not been verified for its accuracy or completeness.
More about the Opioid Crisis
- Law Enforcement Agencies Awarded Grants from State Opioid Settlement Funds - Wisconsin Department of Health Services - Apr 18th, 2024
- MKE County: County Wins Award for Opioid Settlement Fund Usage - Graham Kilmer - Apr 4th, 2024
- MKE County: County Offering $2.8 Million For Opioid Addiction Programs - Graham Kilmer - Mar 28th, 2024
- Senator Baldwin Calls on House to Pass Bill that Cracks Down on Fentanyl Traffickers - U.S. Sen. Tammy Baldwin - Feb 15th, 2024
- Attorney General Josh Kaul announces $350 million settlement with marketing firm over its role in opioid epidemic - Wisconsin Department of Justice - Feb 1st, 2024
- Grants Will Fund Recovery Housing For Those Facing Homelessness and Battling Opioids - Margaret Faust - Jan 12th, 2024
- Baldwin Helps Advance Bipartisan Bill to Address Opioid and Fentanyl Crisis - U.S. Sen. Tammy Baldwin - Dec 14th, 2023
- DHS and DOJ Announce Dose of Reality Roundtable Discussions on Wisconsin’s Opioid Epidemic - Wisconsin Department of Health Services - Dec 6th, 2023
- Limited Supply of Narcan Prevents Milwaukee Groups From Saving Lives - Edgar Mendez - Dec 1st, 2023
- MUPD, Wisconsin Voices for Recovery partner to install Nalox-ZONE boxes on Marquette campus - Marquette University - Oct 12th, 2023
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