Teva Pharmaceuticals has entered an agreement with the Attorney General (AG) of Rhode Island to pay $21m in cash over 13 years to resolve opioid-linked claims in the US state and its subdivisions.
According to the agreement, the company will also offer its Narcan (naloxone hydrochloride nasal spray) and buprenorphine naloxone (sublingual tablets) branded as Suboxone over a period of ten years.
These drug supplies would amount to a total of $78.5m at wholesale acquisition cost.
A total of 50,000 kits of Naloxone (100,000 nasal sprays) priced at $62.5m will be delivered to the state each year for ten years.
The company will deliver $16m worth of Suboxone medication over ten years.
A lifesaving generic treatment, naloxone can reverse the opioid overdose which can often have a fatal impact.
Buprenorphine naloxone is the primary drug used for treating addiction to opioids.
Under the deal, Teva will pay more than 50% of the settlement amount – $13m – to Rhode Island within a year.
Teva Pharmaceuticals said in a press statement: “Teva believes that today’s settlement with the state of Rhode Island is in the best interest of those impacted by the opioid crisis and a critical step forward in getting life-saving treatments to the people who need them.
“This settlement agreement is not an admission of any liability or wrongdoing and the Company will continue to defend itself in court, in states where we have not reached terms of a settlement agreement.”
In February this year, the company signed another agreement with the AG of Texas to pay $225m to the US state and its subdivisions to settle opioid claims.
Under the deal, Teva agreed to pay $150m to Texas for 15 years and provide Narcan worth $75m for over ten years.