For Immediate Release:
Tuesday, July 26, 2022
Contact:
Nazneen Ahmed (919) 716-0060
(RALEIGH) Attorney General Josh Stein today announced that he 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.
“Every week I meet people whose lives have been torn apart by the opioid epidemic,” said Attorney General Josh Stein. “Far too many families and friends have experienced painful loss to overdose. But I also meet inspiring people who are living happy lives in recovery – and this agreement will help thousands more North Carolinians get the treatment and support they need to free themselves of addiction.”
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. While critical details of the settlement remain the subject of ongoing negotiations, Teva disclosed the key financial terms in its earnings announcement Wednesday.
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.
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.
A final settlement remains contingent on agreement on critical business practice changes and transparency requirements.
In addition to North Carolina, the negotiations are being led by Iowa, California, Illinois, Massachusetts, New York, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and Wisconsin. While New York is among the 12 states that negotiated this proposed settlement framework, Teva and New York are still engaged in further negotiations.
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