The company responsible for promoting OxyContin and manufacturing opioids has reached settlements amounting to $500 million.
A marketing firm, involved in creating promotional strategies for OxyContin and other pain-relieving medications, and a pharmaceutical company have reached individual settlements on Thursday, totaling $500 million. This is in order to avoid a trial over allegations that they played a role in the country’s opioid epidemic.
Publicis Health, a division of the media company Publicis Groupe headquartered in Paris, has committed to paying $350 million. A portion of this amount will be distributed to each state within the next two months, with the majority of the funds being allocated towards combatting the ongoing overdose crisis.
Hikma Pharmaceuticals has committed to paying a sum of $115 million in cash and supplying $35 million worth of an overdose reversal medication to state, local, and Native American tribal authorities.
Publicis became the initial advertising firm to come to an agreement on the impact of opioids in the United States. It was previously facing a lawsuit in Massachusetts, but ultimately reached a settlement with the majority of states before any court claims were made against it.
The New York Attorney General Letitia James, who was in charge of discussions with the company, stated that Publicis collaborated with Purdue Pharma, the manufacturer of OxyContin, from 2010 to 2019. Publicis assisted in promoting campaigns for OxyContin, as well as other prescription opioids such as Butrans and Hysingla.
The materials from James’ office emphasized the abuse-deterrent features of OxyContin and encouraged patients to increase their dosage. Although the formulation made it more difficult for users to crush the drug for a quicker high, it did not reduce the addictive nature of the pills.
Bob Ferguson, the Attorney General of Washington, stated that the company supplied doctors with electronic recording devices for the purpose of Publicis and Purdue analyzing discussions between prescribers and patients regarding opioid use.
As a part of the agreement, Publicis has consented to disclose confidential documents regarding its dealings with Purdue and other opioid-producing companies.
In a statement, the company clarified that the settlement does not imply any guilt and mentioned that the majority of the work involved in the settlement was completed by Rosetta, a company formerly owned by Publicis which ceased operations a decade ago.
“According to Publicis, Rosetta was responsible for fulfilling typical advertising tasks for their clients, specifically for products that are still being prescribed to patients and approved by major private insurers, Medicare, and State Pharmacy Boards.”
The company restated its stance of not accepting any new projects involving opioid-related products.
According to Publicis, the organization’s insurance providers will be compensating them for $130 million, with $7 million of that total going towards legal fees for various states.
Hikma, headquartered in London, stated that their agreement does not imply any wrongdoing on their part.
Pharmaceutical companies, distributors, pharmacies, and a consulting firm have reached settlements with the U.S. federal, state, and local governments for over $50 billion to address issues related to opioids.
A significant proposed settlement has been reached between state and local governments and Purdue Pharma, based in Connecticut. As part of the agreement, members of the Sackler family, who hold ownership of the company, will contribute up to $6 billion and relinquish ownership. The U.S. Supreme Court is considering whether it is fair to protect family members from civil lawsuits as part of the settlement.
The opioid epidemic has claimed the lives of hundreds of thousands of individuals in three separate surges.
The first began after OxyContin hit the market in 1996 and was linked mostly to prescription opioids, many of them generics. By about 2010, as there were crackdowns on overprescribing and black-market pills, heroin deaths increased dramatically. Most recently, opioids have been linked to more than 80,000 deaths a year, more than ever before. Most involve illicitly produced fentanyl and other potent lab-produced drugs.