Amneal settles opioid lawsuits for $272.5M

Amneal Pharmaceuticals, a generics manufacturer based in New Jersey, has resolved around 900 lawsuits concerning its role in the opioid crisis by agreeing to a $272.5 million settlement with various state, local, and Native American jurisdictions. These lawsuits accused Amneal of exacerbating the opioid epidemic by not addressing suspicious orders of opioids.

The settlement announcement came during Amneal's quarterly earnings report. The company emphasized that the agreement does not constitute an admission of wrongdoing. The financial arrangement includes payments spread over a decade, consisting of $92.5 million in cash and $180 million in naloxone. Naloxone, commonly known by the brand name Narcan, is a nasal spray that rapidly counteracts opioid overdoses and can save lives by restoring normal breathing.

Parties involved in the settlement have the option to accept 25% of the naloxone's value, up to $45 million, over the last four years of the agreement instead of the product itself. Amneal has valued a naloxone two-pack at $125.

In its annual report, Amneal affirmed its dedication to mitigating the impact of the opioid crisis by making naloxone more accessible. "We remain committed to helping those impacted by the opioid crisis by enhancing access to naloxone nasal spray, which is an emergency treatment for opioid overdose and helps save lives," the company stated.

The settlement news coincided with California's announcement of a deal with Amneal to purchase naloxone at a reduced price of $24 per two-pack, down from the previous price of $41.

New York's Attorney General Letitia James criticized Amneal, noting that the company sold nearly nine million opioid pills from 2006 to 2019. "Amneal became one of the largest generic pharmaceutical companies in the world by profiting off the sale of dangerous opioids," James remarked. She acknowledged that while the settlement cannot completely undo the damage caused by the national opioid crisis, it will provide significant funding and resources to support those affected.

This settlement adds to the over $51 billion already paid by drug manufacturers, distributors, pharmacies, and consultants to resolve opioid-related lawsuits across the United States. For instance, California has received $4.25 billion from opioid settlements, while New York has collected $2.7 billion.

The largest opioid settlement occurred in 2021 when Johnson & Johnson and three major U.S. distributors—AmerisourceBergen, Cardinal Health, and McKesson—agreed to pay $26 billion to seven states. In the previous year, Teva reached a $4.25 billion settlement with 48 states.

Amneal's latest financial performance showed a robust upward trend, with the company reporting $659 million in revenue for the first quarter, representing an 18% increase compared to the previous year. The company projects its annual revenue to be between $2.55 billion and $2.65 billion. Last year, Amneal reported revenue of $2.39 billion.