TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

OxyContin maker files for bankruptcy in bid to settle opioid crisis cases

  •  

    Agence France-Presse

New York, United States   /   Mon, September 16, 2019   /   12:44 pm
 OxyContin maker files for bankruptcy in bid to settle opioid crisis cases In this file photo taken on April 2, 2019 Purdue Pharma headquarters stands in downtown Stamford, Connecticut. Purdue Pharma said on September 15, 2019 that they had filed for bankruptcy in a bid to settle opioid crisis cases. (Agence France Presse/Drew Angerer )

Purdue Pharma is to file for bankruptcy in a settlement agreement that it hopes will provide more than $10 billion to address the opioid crisis, the company said in a statement on Sunday.

The pharmaceutical giant whose prescription painkiller OxyContin is blamed for much of the US opioid addiction epidemic, is facing thousands of state and federal lawsuits.

The settlement, which is subject to court approval, will contribute Purdue's entire value to a body established for the benefit of the claimants and the American people.

Purdue Chairman Steve Miller said the settlement will "provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis."

The company said that it had filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code and that the board of a new company would be selected by claimants and approved by the Bankruptcy Court.

Miller said the restructuring will avoid "wasting hundreds of millions of dollars and years on protracted litigation."

As part of the settlement, the company says it will potentially contribute millions of addiction treatment drugs to the public at no or low cost, such as nalmefene and naloxone.

As well as giving up control of Purdue, the settlement will also see the wealthy Sackler family personally contribute $3 billion, with the potential for further contributions.

Topics :