A United Kingdom–based opioid manufacturer has agreed to pay millions of dollars to a group of states as part of a settlement over how the company marketed its opioid addiction treatment medication.
The $700 million settlement between the federal government and states with U.K.-based Reckitt Benckiser Group revolves around allegations that the company kept the price of Suboxone, an opioid addiction treatment drug, artificially high by delaying generic versions, resulting in false or fraudulent claims to state Medicaid programs.
The company in July agreed to pay the federal government $1.4 billion to resolve its potential criminal and civil liability regarding the marketing of Suboxone, with $500 million going to the federal government and up to $200 million split among several states.
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For example, Washington state said it received $2.2 million, West Virginia received nearly $12 million and Ohio said it will receive $39.4 million. All states will use a large percentage of their settlements to reimburse federal Medicaid programs.
Suboxone is a drug that reduces withdrawal symptoms and is used to wean heroin and opioid users off the addictive drugs while they are undergoing treatment. The medication and its active ingredient, buprenorphine, are still addictive.
According to the Department of Justice, a multistate investigation showed that Reckitt Benckiser knowingly promoted Suboxone to doctors, who later prescribed the drugs for unsafe, ineffective and medically unnecessary uses.
“Misrepresenting the characteristics of any drug can have dangerous consequences for public health,” West Virginia Attorney General Patrick Morrisey (R) said in a statement. “Such conduct also steals precious resources from Medicaid and jeopardizes the program for those who need it most. We cannot tolerate such behavior and look forward to rooting out more fraud in the months ahead.”
The company was also accused of attempting to improperly delay Food and Drug Administration approval of generic versions of the drug so it could remain in control of the drug’s pricing, allowing the company to extend the time frame it could keep the price of Suboxone high.
In addition to the $700 million in state and federal settlements, the company agreed to forfeit $647 million to resolve a criminal investigation of its subsidiary Indivior, which marketed and sold Suboxone. The company also agreed to pay $50 million to the Federal Trade Commission.
As part of the agreement, there was no determination of liability. When the settlement was first announced in July, the company denied the allegations and said it “acted lawfully at all times.”
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