Attorney General Raoul Announces $6.6 Billion Settlement With Opioid Makers Teva And Allergan
CHICAGO - Attorney General Kwame Raoul today announced a final settlement with opioid manufacturer Teva Pharmaceuticals and former opioid maker Allergan that requires the companies to provide funding and resources that will support states’ efforts to address the effects of opioid addiction.
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The bipartisan settlement comes after negotiations led by Raoul and an executive committee of 13 attorneys general and would provide up to $6.6 billion nationally and include critical business practice changes and transparency requirements. There will be a 30-day sign-on period for states, followed by a 90-day sign-on period for units of local government. The settlement will bedivided among sign-on states, local governments and tribes, and will prioritize abatement and remediation of the opioid crises.
“The opioid addiction crisis is not over. Even today, individuals battle opioid addiction, which affects every facet of their lives and impacts their relationships with loved ones. The companies responsible for fueling this crisis must be held accountable,” Raoul said. “This settlement with Teva Pharmaceuticals and Allergan is the latest in my office’s ongoing push to obtain accountability by the companies that contributed to the opioid epidemic. As with prior settlements, we continue to ensure that accountability includes requiring companies to provide resources that will help states address opioid addiction. I am committed to continuing to advocate for Illinois to receive funding that will mitigate the effects of opioid addiction and support our residents’ recoveries.”
Teva manufactures the branded fentanyl products Actiq and Fentora, as well as generic opioids including oxycodone. Ireland-based Allergan formerly made Norco- and Kadian-branded and generic opioids. The company sold its generic portfolio, including opioid products, to Teva in 2016.
Under the settlement, Teva will pay a maximum of $4.25 billion in cash over 13 years, an amount that includes money Teva has already agreed to pay under settlements with individual states and funds for participating states and subdivisions. In addition, Teva will provide up to $1.2 billion in generic naloxone over a 10-year period or $240 million in cash – whichever individual states select. Naloxone is an emergency drug used to treat opioid overdoses.
The settlement also prevents Teva from promoting opioids, funding or providing grants to third parties for promoting opioids, or lobbying on activities related to opioids. Additionally, Teva must monitor and report off-label use of transmucosal immediate-release fentanyl products and share clinical data through a third-party archive. Teva cannot manufacture oxycodone pills over 40 milligrams. The settlement also requires Teva to pay for an independent monitor for five years to ensure compliance with the agreement, and to disclose documents through a public repository.
The settlement requires Allergan to pay up to $2.37 billion to participate states and local governments over seven years, which includes money Allergan has already agreed to pay under settlements with individual states and funds for participating states and subdivisions. In addition to funds, the settlement prevents Allergan from selling opioids, from funding or providing grants to third parties for promoting opioids, or lobbying on activities related to opioids. The settlement also requires Allergan to share data through a third-party archive and to disclose documents through a public repository.
Once the settlement goes into effect, funds will be allocated in Illinois according to the Illinois Opioid Allocation Agreement that Raoul previously reached with state’s attorneys.
Joining Raoul in leading negotiations were the attorneys general of California, Iowa, Maryland, Massachusetts, New York, North Carolina, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and Wisconsin.
The settlement with Teva and Allergan is the latest of Attorney General Raoul’s ongoing efforts to combat the opioid epidemic and hold accountable companies whose deceptive practices increased opioid prescriptions at the expense of public health. Earlier this month, Raoul’s office announced a $3 billion settlement with Walmart to resolve allegations the company contributed to the opioid addiction crisis by failing to appropriately oversee the dispensing of opioids.
Last year, Raoul’s office negotiated the Illinois Opioid Allocation Agreement. The agreement is intended to ensure the approximately $760 million Illinois will receive through the historic national $26 billion opioid settlement agreement with the nation’s three major pharmaceutical distributors and Johnson & Johnson, and these additional opioid settlements, are allocated equitably, including to counties and eligible municipalities. The majority of Illinois’ money will go to the Illinois Remediation Fund to be used for abatement programs throughout the state.
Attorney General Raoul urges anyone who believes they or a loved one may be addicted to opioids to seek help by calling the Illinois Helpline for Opioids and Other Substances at 833-2FINDHELP, which operates 24 hours a day, seven days a week.
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