J&J to stop selling opioids in US, reaches USD 230 mn settlement

Pharma giant Johnson and Johnson, accused of fuelling the deadly US opioid crisis has reached a USD 230 million settlement with the state of New York. The company has confirmed that it will stop making or selling opioids in the US.

The agreement allowed Johnson & Johnson to resolve litigation over its role in the epidemic which has killed more than half a million people since 1999, according to a statement from New York attorney general Letitia James. The agreement was announced on Saturday (US time).

For its part, in a separate statement J&J said the settlement allowed it to avoid a trial that was scheduled to begin Monday, and said the group had "made the business decision in 2020 to discontinue all of its prescription pain medications in the United States."

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The settlement "is not an admission of liability or wrongdoing by the company," it said, noting that other nationwide legal proceedings are underway, including a trial in California.

The prosecutor's statement said the company would spread the payments over nine years.

J&J could also pay an additional $30 million in the first year if the state enacts new legislation creating an opioid settlement fund.

"The opioid epidemic has wreaked havoc on countless communities across New York state and the rest of the nation, leaving millions still addicted to dangerous and deadly opioids," James said in the statement.

"Johnson & Johnson helped fuel this fire, but today they're committing to leaving the opioid business -- not only in New York, but across the entire country," she added.

That includes both manufacturing and selling opioids, James' statement said. Johnson & Johnson stressed it had made the decision before the settlement was reached.

The $230 million will be aimed at prevention, treatment and education efforts on the dangers of the substances in New York state.

(With inputs from agencies)