Amneal Pharmaceuticals recently reached a $272.5 million settlement in principle, resolving roughly 900 lawsuits brought by various state, local, and Native American authorities. In the lawsuits, the plaintiffs alleged that Amneal helped fuel the opioid epidemic by failing to act on suspicious opioid orders. Amneal manufactures several generic opioid products and was one of the largest opioid manufacturers from 2006 to 2019.
The settlement was made public in Amneal’s quarterly earnings presentation, with the company making payments over the next decade – including $92.5 million in cash and $180 million worth of naloxone, a generic spray that can reverse the effects of an opioid overdose. In lieu of accepting naloxone, parties are able to opt to receive 25% of the product’s value, up to $45 million, over the last four years of the agreement. A two-pack of naloxone is worth about $125, according to the company.
Amneal recorded a charge of $94 million in the consolidation statement of operations based on full participation in the potential settlement in the first quarter of 2024. This amount represents the value of the cash payments and the supply of the naloxone over the ten-year period.
The settlement in principle resolves “substantially all opioids litigation [involving Amneal] and is subject to the negotiation and execution of a definitive settlement agreement between the parties.” It is contingent upon a sufficient number of settling parties electing to opt into the final agreement. Amneal did not admit to any wrongdoing as part of the settlement.
In its report, Amneal reiterated the company’s commitment to helping those impacted by the opioid crisis, “by enhancing access to naloxone nasal spray, which is an emergency treatment for opioid overdose and helps save lives.”
“There must be an answer when companies like Amneal allow the value of profit to eclipse that of human life- this settlement is part of that answer,” said Delaware Attorney General Kathy Jennings. “While no amount of money can undo the harm that has been done, we will continue to hold pharmaceutical companies accountable for their role in the opioid crisis, both nationally and here in Delaware. We have lost too many to this deadly epidemic, and we will stand for it no more.”
New York Attorney General Letitia James criticized the company after announcing the settlement, saying, “Amneal became one of the largest generic pharmaceutical companies in the world by profiting off the sale of dangerous opioids.” James went on to acknowledge that “while this settlement can’t fully reverse the damage done as a result of the national crisis, it will provide essential funding and resources for New York and other states to ensure those suffering get the help they need. I am proud to have secured over $2.7 billion to tackle the opioid epidemic in New York, and my office will continue to hold accountable the companies responsible for fueling this crisis.”
Additional Agreement with California
At the end of April 2024, California and Amneal announced that the state would be able to purchase naloxone at the discounted rate of $24 for a two-pack of nasal sprays, essentially allowing California to purchase 1.5 times more naloxone for the same price (the previous price was $41 for a two-pack).
The purchases – to be made under a government-run pharmaceutical program, CalRx – California purchases medication and distributes it to schools, law enforcement agencies, county health departments, clinics, and other community organizations. California residents are able to obtain naloxone at no cost to them through one of the participating organizations, or they can purchase naloxone for about $50.