Purdue Pharma exploring Chapter 11 bankruptcy filing
Posted on March 05, 2019 by Medtech[y] Staff
Stamford, Connecticut-based Purdue Pharma has been exploring a Chapter 11 bankruptcy filing, according to a report from Reuters.
Three things to know:
1. Purdue Pharmaceuticals, the maker of OxyContin, is currently facing 2,000 lawsuits for allegedly contributing to the opioid crisis in the United States. OxyContin’s sales in 2017 were $1.74 billion, down from $2.6 billion in 2012, according to a Reuters report.
2. According to the Reuters report, the Chapter 11 filing would stop the lawsuits and allow Purdue to negotiate the claims with plaintiffs, while a bankruptcy judge supervises the negotiations.
3. The Reuters report also states that shares of Endo International Plc and Insys Therapeutics Inc, two companies that like Purdue have been named in lawsuits related to the U.S. opioid epidemic, closed down 17 percent and more than 2 percent, respectively, on Monday.
“We will oppose any attempt to avoid our claims, and will continue to vigorously and aggressively pursue our claims against Purdue and the Sackler family,” Connecticut Attorney General William Tong said. Connecticut has a case against Purdue and the Sacklers.
Access the full Reuters report here.