The companies say U.S. states “enough” joined an agreement resolving claims that fueled the opioid epidemic, allowing it to move forward.
Three major U.S. drug retailers and manufacturers Johnson & Johnson will proceed with a $ 26 billion proposal to resolve claims that fueled the opioid epidemic after “sufficient” states came together, companies said .
The companies had until Saturday to decide whether there were enough states to support the $ 21 billion deal with McKesson Corp., AmerisourceBergen Corp. and Cardinal Health Inc., and a $ 5 billion deal with J&J.
Distributors said Saturday 42 states, five territories and Washington, DC, signed their agreement. The exact count of the J&J-related deal was not immediately clear.
Companies will make their first annual deposit-in-deposit payment on or before Sept. 30, dealers said. The final amount will depend on several factors, including the final participation rate of states and political subdivisions, they added.
North Carolina Attorney General Josh Stein, chief negotiator of the solution, described the level of support as “a remarkable demonstration of unity and commitment across the country to address this issue.”
The complex formula of the agreement provided for the participation of at least 44 states, but eventually the companies decided whether to join a “critical mass” and whether to end the agreement.
Some states had previously said they had not fully signed by the Aug. 21 deadline: Alabama, Georgia, Nevada, New Mexico, Oklahoma, Washington and West Virginia.
The cities and counties of the participating states must also join by January 2nd. Ultimately, $ 10.7 billion is tied to local participation.
The deal, filed by 14 state attorneys general on July 21, is designed to resolve more than 3,000 lawsuits accusing distributors of ignoring red flags that pain pills were being diverted to communities. for illicit uses and that J&J minimized the risks of opioid addiction.
The money would fund treatment and other services.
The companies deny the wrongdoing, saying the drugs were approved by the U.S. Food and Drug Administration and that the responsibility for sales of painkillers is the responsibility of doctors, regulators and others.
The deal is separate from a solution that resolves similar claims against OxyContin maker Purdue Pharma LP and its wealthy Sackler family owners. A bankruptcy judge on Wednesday approved the deal, which Purdue values at more than $ 10 billion.