Vermont Business Magazine Vermont is set to receive another substantial settlement in its ongoing work to hold pharmaceutical companies accountable for their role in the opioid crises. For the second time this week, a drug manufacturer, Abbvie, disclosed a proposed settlement to its investors in its earnings report released today. The proposed settlement will require Allergan, acquired by Abbvie in 2020, to pay up to $2.37 billion to participating states and local governments.
If finalized, the Allergan settlement, together with the Teva Pharmaceuticals settlement announced earlier this week, would provide as much as $6.6 billion nationwide.
“The settlement frameworks announced with Teva and Allergan this week have the potential to provide critically needed resources to help Vermont address the opioid crisis,” said Attorney General Susanne Young. “While key details need to be finalized, this is an important step in the Office’s ongoing effort to hold industry accountable for its role in promoting and profiting from the opioid crisis.”
Ireland-based Allergan formerly made Norco- and Kadian-branded and generic opioids. The company sold its generics portfolio, including opioid products, to Teva in 2016.
Teva and the attorneys general announced earlier this week that they had reached an agreement in principle to provide up $4.25 billion to address its part in the opioid crisis. The Teva agreement in principle is contingent, in part, on Allergan reaching its own settlement with the states.
The coalition of states alleged that Allergan:
- Deceptively marketed opioids by downplaying the risk of addiction, overstating their benefits, and encouraging doctors to treat patients showing signs of addiction by prescribing them more opioids; and
- Failed to maintain effective controls to prevent diversion of opioids.
The $2.37 billion figure includes money that Allergan has already agreed to pay under settlements with individual states.
Both settlements with Teva and Allergan remain contingent on resolution of key issues, including details regarding the settlement structure, which is expected to build on the framework developed in prior nationwide opioid settlements. The parties are also negotiating terms requiring business practice changes and transparency.
