Parsippany-based Teva Pharmaceuticals has reached an agreement with the last outstanding state to resolve its nationwide settlement agreement related to opioid claims brought by states, their subdivisions and special districts.
The U.S. affiliate of the Israeli drugmaker announced it reached a separate agreement with the final state, Nevada, June 9. Teva finalized the settlement terms last November, which New Jersey signed on to in January, agreeing to pay $4.2 billion over the next 13 years to state and local governments for their role in opioid epidemic. Of that figure, the Garden State is expected to receive $99.8 million over that same span of time.
The agreement with Nevada not only resolves Teva’s nationwide settlement agreement, but also avoids a trial that was set to begin in August.
Teva said it plans to make its first payment under the agreement in the second half of this year, adding it has already begun shipments of its generic version of Narcan under its prior opioid settlements, and expects to expand these deliveries under this new agreement in 2024.
While the final agreement includes no admission of wrongdoing, Teva says it is in the best interest of the company – and in the interest of those impacted by the opioid crisis – to conclude this settlement and to focus on the patients it serves every day.
The settlement is one of five nationwide agreements with Allergan, CVS, Walgreens and Walmart, who will pay as much as $20.1 billion nationwide to resolve their alleged roles in helping to fuel the opioid epidemic.
As part of those settlements, New Jersey and its eligible counties and municipalities stand to receive up to $508.1 million in total. Last month, as NJBIZ reported, all eligible counties (all 21) and municipalities (241) signed on to the agreements.
Since New Jersey achieved 100% participation among those localities, it is on track to receive the maximum amount available under the settlements.
“While thousands of New Jerseyans have lost their lives to the opioid epidemic and thousands of others continue to struggle with opioid addiction, these large corporations and drug makers profited from the pain and struggle of our communities,” said Gov. Phil Murphy in a statement announcing that 100% participation rate last month, crediting the work of Attorney General Matthew Platkin and his office. “While this settlement does not bring our loved ones back, it will bring resources to the state that will support programs and initiatives that save lives.”
“No amount of money can bring back the lives lost or undo the suffering caused by the addiction epidemic, but the funding we receive will provide critical support through prevention, treatment, and recovery services and programs that help us heal and move forward,” said Platkin last month.
The settlement funds that New Jersey stands to receive will be split 50/50 between the state and its eligible counties and municipalities, stemming from a Memorandum of Understanding between the state and local governments of Opioid Litigation Recoveries. That MOU establishes binding terms for the distribution and spending of funds from any national opioid litigation resolution and is applicable by its terms to these five settlement agreements.