Pharmaceutical giant Purdue Pharma, manufacturer of the highly addictive opiate OxyContin, has invoked the U.S. Bankruptcy Act to “finalize and implement the agreement” that has been reached with a portion of its plaintiffs, as reported Monday the firm in a statement.
The Sackler family, owner of Purdue, agreed last week to renounce “all the value” of its company to resolve claims it has in courts across the country for its role in the national opioid epidemic, and said it would contribute $3 billion to that global resolution.
Purdue filed for bankruptcy early this morning in a New York court, according to documents reviewed by EFE, and today said it has “a principle of agreement on a framework for closing opioid-related litigation in the U.S.”.
The tentative agreement reached by Purdue and the administrations involved restructuring the company through a bankruptcy process, converting it into a charitable public fund, allocating OxyContin’s proceeds to pay plaintiffs’ expenses and developing treatments for addiction and overdoses.
In his note, Purdue estimated that the agreement will provide “over 10,000 million dollars to alleviate the opioid crisis” and shelled out several points that coincide with what was already known, with the novelty that the Sacklers will potentially contribute more than 3,000 million “for the sales of their former pharmaceutical businesses in the U.S.”.
Purdue board president Steve Miller, said in the note that Purdue, according to that agreement, will devote “all its assets and resources to the benefit of the American public”.
“The framework of this agreement avoids wasting hundreds of millions of dollars and years in protracted litigation, and will instead provide billions of dollars and essential resources to communities across the country trying to cope with the opiate crisis,” Miller added.
Purdue revealed that the firm resulting from the Sacklers’ waiver of their assets will be called NewCo, will be led by a board approved by the Bankruptcy Court, and will provide “tens of millions of doses of drugs to treat opioid overdoses and addictions at little or no cost”.
Accepting the Bankruptcy Law is the “next step in the implementation of the historic principle of agreement,” said Purdue, for whom the judicial process seeks to “facilitate an orderly and equitable resolution of all complaints,” as well as “preserve the value” of their assets.
However, according to The New York Times, it is expected that a group of states, including New York, which have opposed the Purdue settlement and have also denounced the Sackler family, rebut this decision, as it would allow owners to continue participating in the industry from a subsidiary until they sell their business.
Purdue stressed that its “deep experience in drug development will be used to benefit the American public” thanks to the agreement, with which it “could provide” drugs such as “nalmefene” or “naloxone” to local and state administrations at a reduced or free price.