Teva Reaches $100 Million Opioid Settlement with Rhode Island, Providing Cash and Addiction Treatment Medications

Compiled by Draven

On March 21, Teva reached a $100 million settlement agreement with Rhode Island, USA, to resolve claims related to opioid addiction. Teva will pay $21 million in cash to Rhode Island over the next 13 years and provide generic drugs Narcan and Suboxone worth $78.5 million over the next 10 years. Both drugs are used to treat opioid addiction.

Teva Faces Legal Battles in Multiple U.S. States Over Allegations of Exacerbating the Opioid Crisis by Deceptively Marketing Products That Led Millions of Americans to Addiction. The Surge in Opioid Victims Has Placed a Growing Burden on Cities in Terms of Healthcare, Law Enforcement, and Other Areas, Triggering a Severe Public Health and Safety Crisis.

It is reported that in 2018, Teva reached an agreement to pay $15 million to Louisiana and donated $3 million worth of generic drugs Narcan and Suboxone; In 2019, Teva reached a similar agreement with Ohio, agreeing to pay $20 million in cash and donate $25 million worth of Suboxone; Recently, Teva also reached an agreement with Texas, agreeing to pay $150 million in cash over 15 years and donate $75 million worth of generic drug Narcan.

Teva mentioned in a statement that the agreement with the government does not constitute an admission of all liabilities but aims to assist victims affected by the opioid crisis. Teva will defend itself in court and fight against lawsuits in areas where settlements have not been reached. CEO Kåre Schultz stated that the company will seek ways to resolve claims nationwide in China and is confident of completing this within a year.

Teva is not the only company facing opioid litigation; AbbVie's subsidiary Allergan is also involved. To resolve Allergan’s claims, AbbVie will pay $7.5 million to the state of New York. In February this year, the three largest distribution companies—AmerisourceBergen, Cardinal Health, and McKesson—reached a nationwide settlement in the U.S. According to the terms of the agreement, the three companies will pay up to $19.5 billion in settlement fees. Earlier this month, Purdue Pharma’s Sackler family was ordered to pay $6 billion. Additionally, Johnson & Johnson is required to pay $5 billion and will cease selling opioids within the United States.

Reference Source:

1、Teva, Allergan Reach Opioid Settlement Agreement with Rhode Island

2、Teva reaches $100M settlement with Rhode Island for decade of anti-narcotic drugs and $21M cash