Unsettling Settlements: How a $260 Million Payout is a Win for Big Pharma
Words by Alexi Barnstone
On October 21st at 7:00 AM journalists and spectators lined up outside the courts of Cleveland to witness a landmark federal case. Two Ohio counties, Cuyahoga and Summit, were preparing to take on big pharma, and hold some of the companies responsible for the opioid epidemic to account.
Before the start of the trial, a $260 million settlement was reached.
This settlement only resolves the case of two of the 2,400 counties, cities and native tribes that have cases against pharmaceutical companies. The McKesson Corp., AmerisourceBergen and Cardinal Health will provide the two counties with $215 million in cash relief, followed by another $20 million from Israeli drugmaker Teva Pharmaceuticals. Teva will also provide $25 million of anti-addiction medication over the next three years. The pharmacy Walgreens, also implicated in the trial, is not part of the settlement pay out.
The financial relief will arrive in one of the most severely afflicted states. Ohio had the second highest number of opioid deaths in 2017, with 4,923 reported deaths. Over the last 20 years 400,000 people have died from the opioid epidemic in the United States.
The settlement money is heralded by some as a big win for the counties involved. With the money paid out by these companies the cities of Cleveland and Akron, located in the counties Cuyahoga and Summit respectively, will be able to begin to address the epidemic in more depth. Funding will be provided to hospitals, clinics and emergency response teams. Narcan, the overdose reversal drug, can be made more readily accessible to response teams fighting synthetic drugs such as fentanyl.
The benefits that follow this capital infusion will have lasting positive effects on residents of Ohio. Unfortunately, the $260 million payout is a small price for big pharma. A cost necessary to ensure that the symptoms of the epidemic remain the focal point while the causes are neglected.
In 2018 Teva, McKesson and AmerisourceBergen shared a net revenue of roughly 400 Billion dollars. The $260 million settlement is a speeding fine for driving too quickly toward billions. It is a necessary cost that guarantees that blame for the crisis stays completely speculative, removed from court ruling and legal condemnation. In a public statement following the settlement agreement the pharmaceutical companies involved disputed claims that they were responsible for being lax in monitoring the over distribution of opioids.
Though the opioid epidemic is widely recognised by members of the public, a court ruling holding the companies responsible is a necessary landmark that must be achieved to further the national battle against drug overuse. Until that happens, the fight remains stagnant at a societal level. Big pharma must be held accountable for their atrocities. This starts in the federal courts, with a legal recognition of guilt.