Pharma faces its big tobacco moment

Big pharma is having a big tobacco moment as litigation over opioids attract star lawyers and a growing list of US states and local governments seeking their own multi-billion payout to deal with costs of a burgeoning US drug epidemic.

Pharma faces its big tobacco moment

South Carolina became the sixth US state to sue opioid makers alleging that they have created a public health crisis. The suit filed by Joe Rice, a plaintiff lawyer who helped negotiate a $246bn (€208.5bn) settlement with the tobacco industry in 1998, suggest states are laying the groundwork to force a resolution that provides billions to cover the costs of an epidemic blamed for 62 deaths per day.

“The more states they have signed up, the bigger their hammer when it comes time to decide who should be on the settlement negotiating committee,” said David Logan, a Roger Williams University law professor.

Legal action tied to opioids is increasing at the same time that lawmakers are seeking more funding to defray costs tied to abuse, addiction, and overdoses. Last week, US President Donald Trump said he is ready to declare a national emergency, which would clear the way for extra funding and government authority to address the wave of drug-related deaths.

The administration gave no timetable for when the declaration would be signed.

In response to South Carolina’s lawsuit against Purdue Pharma, the maker of OxyContin, Purdue spokesman John Puskar said that while the company denies the allegations, it shares the state’s “concerns about the opioid crisis”.

“We are committed to working collaboratively to find solutions,” he said.

“OxyContin accounts for less than 2% of the opioid analgesic prescription market nationally but we are an industry leader in the development of abuse-deterrent technology, advocating for the use of prescription drug monitoring programmes and supporting access to Naloxone.”

More than 22,000 Americans died from prescription opioid overdoses in the US in 2015, an increase from 19,000 the year before, according to the Centers for Disease Control and Prevention.

A study in the October issue of Medical Care journal puts the economic cost of opioid overdose, abuse and dependence at $78.5bn.

Health care accounts for about a third of that cost while expenses for lost productivity in non-fatal cases add another $20bn, according to the journal published by Wolters Kluwer.

South Carolina’s complaint follows similar filings by New Hampshire, Ohio, Missouri, Oklahoma, and Mississippi.


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