Allergan AGN announced that it has settled with two counties of Ohio for almost $5 million, resolving all claims against itself related to the federal multidistrict litigation for opioid drug abuse scheduled in October.
Per the settlement terms, Allergan will pay $1.9 million to Summit County and $3.1 million to Cuyahoga County, which will remove the company from the defendant list in the first-ever multidistrict litigation related to opioid drug abuse. The company stated that these settlements have been done keeping in view the timeline for the trial outcomes and costs related to it. The settlement should remove an overhang on the company.
Please note that the two Ohio counties, Summit and Cuyahoga, are the bellwethers in the multidistrict litigation, and will represent nearly 2,000 political subdivisions – cities, counties, townships, and others. Thus, the settlement will relieve Allergan from a major chunk of opioid abuse claims. The company is seeking indemnification with other related parties. Moreover, Allergan stated that it does not have any pending generic claim as the company had sold its related assets to Teva TEVA in 2016. It has not been actively involved in marketing or promotion of opioid products since 2013.
Last month, Endo International ENDP announced a settlement in a similar litigation for $10 million. There are several other pharma companies still on the defendant list in the multidistrict litigation. We expect similar settlements to be offered by some of them.
Allergan’s shares have increased 19.5% so far this year against the industry’s decline of 9.1%.
Opioid-based drug abuse has come to the limelight as 400,000 patients are estimated to have died in the past couple of decades due to overdose. Per the United States Department of Health and Human Services, pharmaceutical companies encouraged use of opioid pain relievers by assuring that patients will not get addicted to the drugs. More than 2000 lawsuits have been filed against pharma companies in multiple states, holding them responsible for the opioid epidemic and deaths due to opioid overdose.
The multidistrict litigation, scheduled to start next month, will provide a clearer picture of the impact on pharma companies as it represents nearly 2,000 different lawsuits clubbed under a single trial. The trial is expected to span over seven weeks.
However, the market is already predicting a gloomy outlook for pharma companies due to the risk of increasing litigation costs. In August, an Ohio district court provided its ruling in the opioid litigation brought by the state of Oklahoma, directing the only defendant, J&J JNJ, to pay $572 million. Teva and Endo had settled their litigation with the state of Oklahoma prior to the start of the trial.
Meanwhile, Purdue Pharma and its owners, the Sackler family, are reportedly in discussions to settle all pending litigations related to its opioid-based drugs for payment in the range of $10 billion to $12 billion. However, no agreement has been reached yet. The company will file for bankruptcy if any deal materializes to meet the settlement payment.
艾尔建（Allergan） AGN 宣布，它已与俄亥俄州两个县达成近500万美元的和解，解决了所有与10月份针对阿片类药物滥用的联邦多严格诉讼有关的索赔。
根据和解条款，艾尔建（Allergan）将向 Summit County 支付190万美元，向 Cuyahoga County 支付310万美元，这将使该公司从有史以来第一次与阿片类药物滥用有关的多严格诉讼中的被告名单中除名。该公司说，鉴于审判结果和与其有关的费用的时间表，这些解决办法一直在进行。和解应能消除公司的负担。
请注意，俄亥俄州的两个县， Summit 和 Cuyahoga ，是多严格诉讼的领头羊，将代表近2000个政治分区——城市、县、乡等。因此，和解协议将使艾尔建（Allergan）免于遭受大量阿片类药物滥用索赔。该公司正在寻求与其他相关方的赔偿。此外，艾尔建（Allergan）表示，由于公司已于2016年将其相关资产出售给梯瓦（Teva） TEVA ，故其不存在尚未了结的仿制药索赔。2013年以来未积极参与阿片类药物产品的市场推广或推广。
上个月，远藤（Endo） International ENDP 宣布以1000万美元的价格在类似诉讼中达成和解。多元诉讼中还有其他几家医药企业仍在被告名单上。我们期望其中一些人提供类似的解决办法。
然而，由于诉讼成本上升的风险，市场已经预计制药公司前景黯淡。今年8月，俄亥俄州的一家地区法院就俄克拉荷马州提起的阿片类药物诉讼做出裁决，命令唯一的被告 J & J JNJ 支付5.72亿美元。在审判开始之前，梯瓦（Teva）和远藤（Endo）已经与俄克拉荷马州解决了他们的诉讼。
同时， Purdue Pharma 及其所有者 Sackler 家族据报正在讨论解决所有与其阿片类药物相关的未决诉讼，要求支付100亿至120亿美元不等。然而，尚未达成协议。如果任何交易得以实现，公司将申请破产，以支付结算款项。