PROVIDENCE – Litigation against opioid manufacturers and distributors by the state is now concluded, according to Attorney General Peter F. Neronha, following the settlements of two more lawsuits against Teva Pharmaceutical Industries Ltd and Allergan PLC.
Neronha announced Monday that the settlements with the drug manufacturers have a combined value of $107 million. That includes $28.5 million in direct payments to Rhode Island, Neronha said.
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The settlement announced on Monday comes on the heels of another announced in early March with opioid maker Purdue Pharma LP and the Sackler family for $45 million. Other opioid settlements were announced in late January with American multinational Johnson & Johnson for $9.8 million and three major drug distributors, McKesson Corp., Cardinal Health Inc. and AmerisourceBergen Corp. for $90.8 million.
“Today’s agreement also resolves Rhode Island’s claims against the last remaining opioid defendant in Rhode Island’s principal opioid litigation,” according to a statement from Neronha’s office. “The agreements resolve claims brought by the office for the companies’ roles in helping to fuel the opioid epidemic.”
In addition to the $28.5 million in cash, the settlements with Teva and Allergan will provide Rhode Island with one million doses of the overdose-reversing drug Naloxone over the next 10 years, the attorney general said. As part of the settlements, Neronha said, Rhode Island will also receive 67,000 bottles each containing 30 pills of the opioid replacement prescription drug Suboxone over the next decade.
Neronha said that over the past year, his office has negotiated a total of more than $250 million in settlements that will go toward opioid treatment, rescue, prevention and recovery in Rhode Island.
“While no amount of money will ever be enough to undo the harm suffered by Rhode Islanders throughout the ongoing opioid epidemic, these additional recoveries will further support public health efforts to respond to the challenges brought on by this epidemic, which have grown much worse during the COVID-19 pandemic,” Neronha said. “And now, with the agreement of Teva to supply the state with enough Naloxone to meet the projected demand, at no cost for the next 10 years, we can use these hard-gained monetary recoveries for other purposes.”
Neronha’s said the $28.5 million in direct payments from Teva and Allergan will be paid to Rhode Island over the course of 13 years. Of that, $21 million is coming from Teva and $7.5 million is coming from Allergan. And of the $28.5 million, $12 million will be paid to the state within 60 days.
Through a memorandum of understanding joined by communities throughout the state, cities and towns will be entitled to a total of 20% of the $28.5 million, amounting to $5.7 million. Cities and towns will have an opportunity to receive their share of funds upfront by joining the settlement within 60 days, according to Neronha.
“City and town leaders have been important partners in this litigation, and I look forward to working with them to deliver these additional resources to the people they serve,” Neronha said.
As for the Naloxone supply, Teva will supply 100,000 nasal spray doses (or 50,000 “kits” each providing two doses) annually for 10 years, with that medication valued at $62.5 million, Neronha’s said.
Teva will supply Suboxone medication valued at $16 million over 10 years, he said.
The settlements with opioid distributors and manufacturers stemmed from a 2018 lawsuit filed by Neronha, in an effort to hold the companies “accountable for the role they played in creating and fueling the opioid crisis in Rhode Island,” according to the AG.
(UPDATE: Story updated with further comment from Neronha and more details of settlement)
Marc Larocque is a PBN staff writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockPBN.
