Morning Briefing
Summaries of health policy coverage from major news organizations
Endo And Allergan Reach Settlements That Will Allow Them To Bow Out Of Landmark Opioid Trial
Endo International Plc and Allergan Plc have agreed to pay $15 million to avoid going to trial in October in a landmark case by two Ohio counties accusing various drug manufacturers and distributors of fueling the U.S. opioid epidemic. The tentative deals disclosed on Tuesday came ahead of the first trial to result from 2,000 lawsuits pending in federal court in Cleveland largely by local governments seeking to hold drug companies responsible for the deadly epidemic. (Raymond, 8/20)
The trial, which is scheduled to begin in Oct. 21, will be the first to test arguments made by numerous cities, counties, Native American tribes, and still others that several drug makers and distributors fomented the crisis. Some 2,000 lawsuits have been combined in a massive litigation in a federal court in Cleveland, where a judge has been urging a settlement. The local governments and other entities are seeking compensation to cover the costs of treating addiction and abuse. (Silverman, 8/20)
Endo officials said the Ohio settlement didnt reflect what it expects to pay to resolve the other opioid suits. The cash portion of the settlement approximates the estimated cost to Endo of proceeding through trial, Matthew Maletta, Endos executive vice president and chief legal officer, said in an emailed statement. (Feeley and Griffin, 8/20)
The companies are on the smaller end of those facing similar suits. OxyContin maker Purdue Pharma, generic drug manufacturer Mallinckrodt and Ohio-based distributor Cardinal Health are also defendants. The settlements are not final. Endo, which manufactures Opana, has agreed to pay $10 million and provide $1 million of two of its drugs free of charge, according to a news release the company put out Tuesday. Frank Gallucci, an attorney representing Cuyahoga County, confirmed the tentative terms. (Heisig, 8/20)
