Johnson & Johnson will pay $230 million to the state of New York in a settlement that ensures, that the company will permanently stay out of the opioid business in the United States. The information was announced by the state attorney general’s office on Saturday. Johnson & Johnson is the parent company of Janssen Pharmaceuticals Cos.
The opioid industry is facing more than 3,000 lawsuits in the US. According to the Centers of Disease Control and Prevention, the industry has caused an epidemic of prescription and street opioid abuse, killing more than 800,000 Americans in the past 20 years.
The settlement comes right before the opening of arguments in a sweeping New York trial, where Johnson & Johnson was among the defendants. The trial is the first of its kind, targeting the entire opioid supply chain, from the drugmakers who manufacture the pills to the distributors, who supply the pills to the pharmacy chain.
The trial about to begin in New York was filed by Nassau & Suffolk Counties on Long Island and the attorney general. The case includes claims that companies, like Jannsen, misled the public by initially denying that the drugs were highly addictive, and by aggressively marketing the drugs for profits.
The drugs developed by Janssen included a fentanyl patch and a tablet, which was marketed under the names of Duragesic and Nucynta. According to Johnson & Johnson, these drugs accounted for less than 1% of the total opioid prescriptions in the United States.
The company will be removed from the New York trial because of the settlement. Moreover, the company will also pay an additional amount of $33 million as a reimbursement for New York’s attorney fees and costs. The amount will be paid over the next nine years.
According to Letitia James, Attorney General of New York, the opioid epidemic has wreaked havoc on numerous communities across the United States, leaving millions of people addicted to the dangerous and deadly opioids. She further added that Johnson & Johnson helped in fueling this fire. However, now the company is committing to leave the opioid business, not only in New York but across the United States.
In a statement, Johnson & Johnson said that the settlement is not an admission of liability or wrongdoing. According to Johnson & Johnson, the company’s actions related to the marketing and promotion of important prescription pain medicines were appropriate and responsible.
The company has not sold opioids in the US since last year, when it ceased production of its opioid products. Additionally, in 2016, Johnson & Johnson stopped supplying opioid ingredients to other manufacturers.
