Blake Tobin

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The Opioid Crisis!

  • What is it?
  • When did it start?
  • Who is responsible?

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How did this all begin?

In the 1990s, pharmaceutical companies began false reassurance to the medical community that opioids were safe and non-addictive. In addition, these companies began to send pharmaceutical sales representatives to offer incentive bonuses to physicians provided they met a higher prescription quota for opioid drugs2. At that same time, physicians were also being pressured with the new medical gold standard to manage and treat pain more effectively. This, in turn, led to the overprescription of pain medication for many conditions that did not necessarily need it. 1

Unfortunately, the additive effects were realized too late, and many people, young and old, became victims of dependency2. Often addiction to this medication is realized too late, and simply stopping the prescription is not enough to reverse the damage that has already occurred. When patients are no longer able to get their prescribed pills, they turn to street drugs like heroin. This has led to widespread misuse and abuse of opioid drugs and their illegal derivatives.

One big problem with this epidemic was the lack of education as many people assumed addiction could not happen to them. The Three Waves of the Rise in Opioid Overdose Deaths2 graph demonstrates the rising trends from 1999 as more Americans were dying.

3

Opioid class-action lawsuit

A recent lawsuit found these five companies to be responsible for the opioid epidemic.

  1. AmerisourceBergen
  2. Cardinal Health
  3. McKesson
  4. Johnson & Johnson
  5. Prudue Pharma (dissolved)

  • Johnson & Johnson was found to be the kingpin of the opioid epidemic, as stated by the Oklahoma attorney general. Through various pieces of evidence disclosed in court, J&J was found to be a major catalyst of the entire epidemic as it monopolized the market on growth, sale and distribution of opioids4.
    • They were one of the few opioids grows, and sellers account for at least 60 of all opioid ingredients 4.
    • In 1994 J&J created a mutant version of the poppy seed that created a more potent offspring and allowed the plant to grow fast 4.
    • In 1990 they were also found guilty of lobbying Congress to reduce the rules on importing opioids into the United States4.
    • J&J, with the collaboration of Prudue, plotted schemes to increase profit and sales over the years.
      • J&J also signed an exclusive deal with Prudue as their sole distributor of opioids.

The settlement

  • On July 21, 2021, a settlement for 26 billion dollars was reached with over 18 years​ of payout. This money is to be spent on opioid treatment and prevention5​.
  • The 10-year agreement will result in court orders requiring Johnson & Johnson to5 : 
    • Stop selling opioids. 
    • Fund or provide grants to third parties for promoting opioids. 
    • Not lobby on activities related to opioids. 
    • Share clinical trial data under the Yale University Open Data Access Project. 
    • Johnson & Johnson will pay up to $5 billion over nine years, with up to $3.7 billion paid during the first three years.
  • These 14 states will be receiving lawsuit funding5
    • California, Colorado, Connecticut, Delaware, Florida, Georgia, Louisiana, Massachusetts, New York, Ohio, Pennsylvania, and Texas. 

Timing 

  • The deadline for states to sign onto the agreements is August 21, 2021. 5
    • Local jurisdictions in participating states have through January 2, 2022, to join.  
    • The first payments are expected to be received by participating states and subdivisions in April 2022, although covid may have delayed this.

  • ***It is important to note that due to the lack of liability stated in the settlement and since no criminal charges were filed in the settlement, the money will likely be Tax Deductible as a business expense. 

Resources

  1. Understanding the epidemic. Centers for Disease Control and Prevention. https://www.cdc.gov/drugoverdose/epidemic/index.html. Published March 17, 2021. Accessed September 18, 2022.
  2. Overdose death rates. National Institutes of Health. https://nida.nih.gov/research-topics/trends-statistics/overdose-death-rates. Published July 21, 2022. Accessed September 18, 2022.
  3. Assistant Secretary of Public Affairs (ASPA). What is the U.S. opioid epidemic? HHS.gov. https://www.hhs.gov/opioids/about-the-epidemic/index.html. Accessed September 18, 2022.
  4. After resting case, state points to critical evidence that shows Johnson & Johnson is kingpin behind State’s opioid epidemic: Oklahoma attorney general. After Resting Case, State Points to Critical Evidence that Shows Johnson & Johnson is Kingpin Behind State’s Opioid Epidemic | Oklahoma Attorney General. https://oag.ok.gov/articles/after-resting-case-state-points-critical-evidence-showsjohnson- johnsonkingpin behind#:~:text=Johnson%20%26%20Johnson%20created%20a%20mutant,supply%20massive%20amounts%20of%20opioid. Accessed September 18, 2022. 
  5. Opioids. National Association of Attorneys General. https://www.naag.org/issues/opioids/. Published July 21, 2021. Accessed September 18, 2022.

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