Purdue Pharma, the maker of OxyContin, will pay the state of Kentucky $24 million over the next eight years as part of the settlement of a long-running lawsuit that accused the company of misleading the public. This settlement resolves a part of the case dating back to 2007, although Purdue has had FDA approval for its original formulation of OxyContin since 1995. In essence, Kentucky officials accused Purdue Pharma of marketing the prescription painkiller to doctors and patients as non-addictive because it was a pill that, when swallowed, slowly released the drug over 12 hours. However, crushing the pills eliminated the time release barrier. Purdue and other pharmaceutical companies have since created “abuse deterrent” updates of the drugs. According to an Insurance Journal report, the agreement says Purdue Pharma will pay Kentucky $12 million, followed by another $12 million over the next eight years. The court also ordered the state to spend the money on addiction treatment programs. Purdue did not admit any wrongdoing in the settlement agreement.
Read complete coverage from Insurance Journal here.