North Chesterfield pharma company Indivior PLC (NASDAQ: INDV) reached an $86 million settlement with Virginia and 15 other states for its alleged involvement in driving the spread of opioid addiction, according to Virginia Attorney General Jason Miyares and other state attorneys general.
The settlement was negotiated by Miyares and the attorneys general of New York, Illinois, Tennessee and Utah, according to a Friday announcement. Attorneys general offices in California, Colorado, Delaware, Georgia, Idaho, Iowa, Massachusetts, North Caroline, Ohio, Oregon and Vermont also were involved.
Indivior produced buprenorphine-based products to treat opioid use disorder, which can feed opioid addictions when abused and cause further harm. The company allegedly targeted its sales to dangerous prescribers, including doctors running what are called “pill mills.” It is also alleged that Indivior failed to monitor suspicious orders, allowing its product to be abused.
“Indivior pushed buprenorphine-based products — which are used to treat opioid use disorder — to continue to line their own pockets. It’s wrong to target those trying to recover, and I’m glad we were able to put a stop to it,” Miyares said in a statement.
The settlement in principle will provide $86 million to participating states over five years, which will be used for opioid addiction treatment, recovery and prevention programs, according to the office of the Attorney General of New York.
Indivior said in its earnings announcement Thursday that it had set aside $75 million for a settlement.
I’ve reached out to Indivior for comment and will update this story if I hear back.
Indivior made a name for itself by bringing opioid dependency treatments Suboxone and Sublocade to market. In March 2023, it closed on a $145 million acquisition of Opiant Pharmaceuticals Inc., a company developing a new opioid overdose treatment that’s stronger than Narcan.
According to Reuters, Indivior remains a defendant in more than 400 civil lawsuits accusing manufacturers, distributors and retailers of issues related to opioid sales and marketing and their misuse.
The company reported revenue of $299 million in its second quarter, up from $276 million the same quarter the year prior. It posted a net loss of $107 million on the quarter, compared with a profit of $39 million for the same period last year.
