Attorney General Paxton has reached an agreement on key financial terms with opioid maker Teva, which would provide up to $4.25 billion to participating states and local governments. While critical details of the settlement remain the subject of ongoing negotiations, Teva disclosed the key financial terms in its earnings announcement. Texas previously entered into a separate deal with Teva, which includes a provision that allows the state to benefit if those terms are more favorable.
“This settlement is a major win, and a step closer to helping people overcome opioid addiction,” Attorney General Paxton said. “Pharmaceutical companies like Teva must be held accountable for their role in this devastating epidemic. We expect this settlement to make a crucial difference in preventing fatal overdoses and treating opioid addiction disorder.”
Teva, an Israel-based drug manufacturer, makes Actiq and Fentora, which are branded as fentanyl products for cancer pain, and several generic opioids like oxycodone.
The States alleged that Teva promoted potent, rapid-onset fentanyl products for use by non-cancer patients, deceptively marketed opioids by overstating their benefits and downplaying the risk of addiction and failed to comply with suspicious order monitoring requirements.
The parties have agreed to 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 terms, Teva will provide up to $1.2 billion in generic naloxone over a 10-year period or $240 million of cash in lieu of product, as each State may elect. Naloxone is used to counteract overdoses; and
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 reaching agreement to change certain business practices and to meet transparency requirements going forward.