Iowa Attorney General Tom Miller has reached an agreement in principle with Endo International Plc and its lenders that would provide up to $450 million to participating states and local governments, ban promotion of Endo’s opioids and require the company to turn over millions of documents related to its role in the opioid crisis for publication in a public online archive.
The agreement in principle with Endo, which recently filed for Chapter 11 bankruptcy protection in the Southern District of New York, resolves accusations that the company boosted opioid sales using deceptive marketing that downplayed the risk of addiction and overstated the product’s benefits.
Endo, an Ireland-based drugmaker with its U.S. headquarters in Malvern, PA, makes generic and branded opioids including Percocet and Endocet. They also made Opana ER, which was withdrawn from the market in 2017. The states allege that Endo falsely promoted the benefits of Opana ER’s alleged abuse-deterrent formulation, which did not deter oral abuse and led to deadly outbreaks of hepatitis and HIV due to its widespread abuse via injection.
“We continue to hold opioid makers accountable for their deceptive marketing,” Miller said. “This settlement, combined with the money from other settlements we’ve secured, will help to fund prevention and treatment efforts.”
Miller announced other agreements in principle in late July with two other opioid makers, Teva Pharmaceuticals and Allergan, which would provide $6.6 billion nationally. His office is leading negotiations with the two companies.
The Endo resolution, which is contingent on final documentation and bankruptcy court approval, involves the following conditions:
- Requires payment of $450 million in cash over 10 years to participating states and subdivisions.
- Requires Endo to turn over its opioid-related documents for publication online in a public document archive and pay $2.75 million for archival expenses.
- Bans the marketing of Endo’s opioids forever.
Several details, including each state’s share of the settlement, have yet to be determined.
Besides Iowa, the settlement is joined by the Attorneys General of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, Wisconsin, Wyoming and the U.S. Virgin Islands.
More information on Iowa’s settlements with opioid makers and distributors can be found here.