Teva Pharmaceutical Industries Ltd. and AbbVie Inc. recently announced that they finalized the terms of settlements of more than $6.6 billion, resolving lawsuits filed by various United States state and local governments over the marketing of opioids.
Teva will pay up to $4.25 billion – including donations of naloxone, used to reverse overdoses – while AbbVie is slated to pay up to $2.37 billion. The final amounts of each settlement will depend on how many state and local governments opt in.
Teva Settlement
The Teva deal requires the company to make payments over the course of 13 years o state and local governments (including tribal programs and governments). The settlement included other state agreements reached by Teva, including Florida, West Virginia, and Texas. States, cities, and counties can opt to accept a portion of their payout in Naloxone, instead of cash.
In the announcement of the settlement, Teva noted that the $4.25 billion settlement includes “the supply of up to $1.2 billion (wholesale acquisition cost (“WAC”) of its generic version of the life-saving medication, Narcan…over 10 years, or cash at 20% of WAC ($240 million) in lieu of product.”
As noted by New York Attorney General Letitia James, Teva is also committed to injunctive relief, including: a ban on high-dose opioids (greater than 40mg) and prescription savings programs; prohibiting marketing opioids and funding third parties that promote opioids; restricting political lobbying; monitoring and reporting of off-label use of transmucosal immediate release fentanyl (TIRF) products; and disclosing Teva opioid product clinical data.
AbbVie Settlement
The AbbVie deal encompasses more than 3,000 lawsuits that were brought by state and local governments around the United States and includes settlements that the company previously reached with individual states.
Unlike the Teva settlement, with the AbbVie settlement, plaintiffs do not have an option to receive a portion of the payout in overdose-reversing medications – only in cash. Additionally, while Teva’s payout is to be disbursed over the course of 13 years, AbbVie’s is over a six-year period.
Conclusion
Neither Teva nor AbbVie have admitted any wrongdoing as part of the settlements, but did note that as part of the settlements, they resolved a dispute between them over responsibility for claims stemming from a generic opioid business that was sold to Teva by Allergan in 2016.
Lead attorneys for the plaintiffs released a joint statement, calling the deals “significant steps forward in our continued efforts to hold those responsible for the opioid epidemic accountable and obtain the necessary resources to battle its catastrophic effects.”