DES MOINES, IOWA (November 22, 2022) — Iowa Attorney General Tom Miller has reached a final agreement with opioid makers Teva Pharmaceuticals and Allergan that would provide $42.6 million to the state of Iowa and local governments.
In total, the settlements would provide up to $6.6 billion nationally and include critical business practice changes and transparency requirements.
“I am pleased to announce my support for this meaningful resolution negotiated by a bipartisan group of AGs. These settlements will not only provide $6.6 billion nationally to address the opioids crisis, but they will also require changes to reduce the risk of addicting patients,” AG Miller said. “We held Teva and Allergan accountable for deceptively marketing opioids and failing to maintain effective controls to prevent diversion. And we will continue to ensure victims of this epidemic receive the help they need.”
AG Miller had reached agreements in principle on financial terms with the companies in late July, and negotiations continued on terms for injunctive relief and other details. AG Miller’s office helped lead negotiations among a bipartisan group of AGs.
Here are details on the settlements:
Teva
Teva will pay a maximum of $4.25 billion in cash over thirteen years. This figure includes amounts Teva has already agreed to pay under settlements with individual states.
Teva will also provide up to $1.2 billion in generic naloxone over a ten-year period, or $240 million of cash in lieu of product, at each state’s election. Naloxone is used to counteract overdoses.
Under the agreement, Teva must:
- Stop promoting opioids;
- Not fund or provide grants to third parties for promoting opioids;
- Not lobby on activities related to opioids;
- Monitor and report off-label use of transmucosal immediate-release fentanyl products.
- Share clinical data through a third-party archive;
- Not make oxycodone pills over forty milligrams;
- Pay for an independent monitor for five years to ensure compliance with the agreement. Disclose documents through a public repository;
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. States alleged that Teva:
- Promoted potent, rapid-onset fentanyl products for use by non-cancer patients;
- Deceptively marketed opioids by downplaying the risk of addiction and overstating their benefits, including encouraging the idea that signs of addiction are actually “pseudo-addiction” treated by prescribing more opioids; and
- Failed to comply with suspicious order monitoring requirements along with its distributor; and
Allergan
Allergan will pay up to $2.37 billion to participating states and local governments over seven years. This figure includes amounts Allergan has already agreed to pay under settlements with individual states. Under the agreement, Allergan must:
- Stop selling opioids;
- Not fund or provide grants to third parties for promoting opioids;
- Not lobby on activities related to opioids;
- Share clinical data through a third-party archive;
- Disclose documents through a public repository;
Ireland-based Allergan formerly made Norco- and Kadian-branded and generic opioids. The company sold its generics portfolio, including opioid products, to Teva in 2016;
The coalition of states alleged that Allergan:
- Deceptively marketed opioids by downplaying the risk of addiction, overstating their benefits, and encouraging doctors to treat patients showing signs addiction by prescribing them more opioids; and
- Failed to maintain effective controls to prevent diversion of opioids.
Find Help
If you or a loved one suffers from Opioid Use Disorder, go to IowaOpioidHelp.com to find treatment centers and other resources across the state. The Iowa Attorney General’s Office launched the site in September to provide Iowans with a path to recovery.
“Most people do not realize that addiction to opioids is treatable and that Iowans suffering from Opioid Use Disorder can successfully regain control of their lives,” AG Miller said. “There is help and hope available right now.”
For more information on opioid settlements, visit our Opioid Settlement Information page.
