Reckitt to Pay $1.4 Billion to Settle U.S. Opioid-Addiction Drug Probes -- Update
July 11 2019 - 3:23AM
Dow Jones News
By Adria Calatayud
Reckitt Benckiser Group PLC is set to pay $1.4 billion to settle
all U.S. investigations into the sales and marketing of an
opioid-addiction treatment made by a former subsidiary.
The company said Thursday it had reached agreements with the
U.S. Department of Justice and the Federal Trade Commission to
resolve their long-running investigations into Suboxone Film. The
agreement also covers claims relating to Medicaid programs for
those states choosing to participate in the settlement.
Suboxone Film, a prescription medicine that dissolves in the
mouth, is made by Reckitt's former pharmaceuticals business,
Indivior, which was demerged from the company in 2014.
The U.S. charged Indivior in April with organizing a
multibillion-dollar fraud to drive up sales of the product. As part
of the indictment, Indivior was accused of setting up a telephone
and online program intended to connect callers with doctors that
Indivior knew were prescribing Suboxone or opioids in a "careless
and clinically unwarranted manner." Indivior denied those
charges.
Reckitt, the owner of Durex condoms and Dettol cleaning product,
said it has acted lawfully at all times and denied all allegations
that it engaged in any wrongful conduct.
However, it said it believed the settlement was in the best
interests of the company and its shareholders, allowing it to avoid
the costs, uncertainty and distraction associated with
investigations.
The criminal charges against Indivior earlier this year came as
the U.S. government has taken a more aggressive approach to
fighting the opioid crisis, with thousands of lawsuits filed
against opioid manufacturers and distributors.
In 2017, President Trump declared the opioid crisis a
public-health emergency and has taken steps to crack down on
international and domestic drug-supply chains.
(END) Dow Jones Newswires
July 11, 2019 04:08 ET (08:08 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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