VIRGINIA ATTORNEY GENERAL JASON MIYARES ANNOUNCES $4.25 BILLION NATIONAL SETTLEMENT WITH OPIOIDS MAKER TEVA
~Virginia is expected to receive over $70 million dollars from the settlement~
RICHMOND, VA – Virginia Attorney General Jason Miyares has reached an agreement in principle on key financial terms with opioid maker Teva, which would provide up to $4.25 billion to participating states and local governments. Virginia’s share of the overall settlement is estimated to be over $70 million, plus the option to accept Naloxone or additional money in lieu of the Naloxone from Teva.
The $70 million will be split amongst the Commonwealth and Virginia’s localities that join a final settlement, and the majority is expected to go to the Opioid Abatement Fund that is administered by the Opioid Abatement Authority.
While critical details of the settlement remain the subject of ongoing negotiations, Teva disclosed the key financial terms in its announcement Tuesday.
“The opioid epidemic affects each and every Virginian, in every corner of the Commonwealth. While there is no price that can be put on the lives lost from addiction, there is a lot of work to be done to fight back against the epidemic. These funds will make a significant difference in preventing fatal overdoses and treating opioid addiction disorder,” said Attorney General Miyares.
Teva, an Israel-based drug manufacturer, makes Actiq and Fentora, which are branded fentanyl products for cancer pain, and a number of generic opioids including oxycodone.
Virginia Attorney General Jason Miyares’ office has sued Teva in Richmond Circuit Court and the case is pending. Virginia’s lawsuit alleges that Teva:
- promoted potent, rapid-onset fentanyl products for use by non-cancer patients; and
- deceptively marketed opioids by downplaying the risk of addiction and overstating their benefits, including encouraging the idea that signs of addiction are actually “pseudoaddiction” treated by prescribing more opioids.
The parties have agreed on the following financial terms:
- Teva will pay a maximum of $4.25 billion in cash over 13 years. This figure includes amounts Teva has already agreed to pay under settlements with individual States, funds for participating States and subdivisions, and the $240 million of cash in lieu of product described below.
- As part of the financial term, Teva will provide up to $1.2 billion in generic naloxone (valued at Wholesale Acquisition Cost or WAC) over a 10-year period or $240 million of cash in lieu of product, at each State’s election. Naloxone is used to counteract overdoses.
- The settlement will build on the existing framework that states and subdivisions have created through other recent opioid settlements.
A final settlement remains contingent on agreement on critical business practice changes and transparency requirements.