Five drug companies and distributors are offering $22 billion in cash in addition to drugs and services they value at $28 billion to resolve claims alleging the industry triggered the U.S. opioid crisis, two sources conversant in the matter stated Wednesday.
The drug industry faces around 2,600 lawsuits brought by state and local governments, hospitals, and other entities seeking to hold drug manufacturers and distributors responsible for the toll of the opioid epidemic. Local governments seek funds to cover the costs of companies in their communities.
Distributors McKesson, AmerisourceBergen Corp, and Cardinal Health have offered to pay $18 billion in cash over 18 years, while Johnson & Johnson would pay $4 billion in cash.
Teva Pharmaceutical Industries has offered to give away medicines it values at $15 billion as part of the settlement and provide distribution services it values in the billions, one of many people mentioned.
Both mentioned that Teva’s proposed settlement would run over ten years and had a total estimated value of around $28 billion. Nevertheless, it isn’t clear how the valuation was done, and one source mentioned some states are asking whether Teva ought to pay cash as well.
The talks are being led by the attorneys general for Texas, Tennessee, North Carolina, and Pennsylvania.