New Mexico Sues Drugmakers, Distributors Over Opioid Crisis
September 07 2017 - 7:10PM
Dow Jones News
By Sara Randazzo
New Mexico sued several major pharmaceutical companies and
wholesale drug distributors on Thursday, arguing the corporations
are partly to blame for rampant opioid addiction rates in the
state.
The lawsuit, filed in state court in Santa Fe County, follows
the lead of half a dozen other states that have also sued over the
opioid crisis. All claim pharmaceutical companies played down the
addictive risk of the painkillers in their marketing to the public
and doctors, causing them to be widely prescribed for chronic pain
and fueling addiction.
Most of the other states to sue, including New Hampshire, South
Carolina, Ohio and Oklahoma, have focused their claims solely on
the pharmaceutical companies. Dozens of cities and counties,
meanwhile, have filed litigation against distributors, claiming
they unlawfully sold painkillers into the regions and failed to
monitor and report suspicious orders.
New Mexico is going after both camps.
Thursday's suit names drugmakers Purdue Pharma L.P., Teva
Pharmaceutical Industries Ltd., Johnson & Johnson, Endo
International PLC and Allergan PLC, distributors AmerisourceBergen
Corp., McKesson Corp., and Cardinal Health Inc., and various
subsidiaries.
The companies have denied liability in the mounting litigation
while stressing that they support the proper use of opioids. Teva,
Endo, J&J and Purdue each said Thursday they are committed to
working to prevent misuse of the drugs. J&J and Purdue added
that they deny the allegations.
AmerisourceBergen said Thursday it will defend itself against
the claims and reiterated a previous statement that wholesale drug
distributors are logistics companies that don't make the drugs or
have any direct contact with patients or prescriptions. McKesson
and Cardinal didn't respond to a request for comment Thursday but
have made similar statements to that of AmerisourceBergen in the
past.
The state's attorney general, Hector Balderas, said Thursday
that safeguards along the entire pipeline of drug distribution have
failed, making it necessary to sue drugmakers and distributors.
"We've been decimated by their profiteering and the risk associated
with these painkillers," he said.
The lawsuit brings claims under public nuisance, unfair
practices, Medicaid fraud, racketeering, fraud against taxpayers
and negligence laws.
Since 2008, New Mexico has had one of the highest rates of drug
overdose death in the U.S., according to the complaint. More than
500 New Mexico residents die each year from drug overdoses, the
state says, around 70% of those from prescription opioids or
heroin.
In Rio Arriba County, 64 out of every 1,000 babies born -- 10
times the national average -- are diagnosed with neonatal
abstinence syndrome, caused by exposure to opioids while in the
womb, according to the complaint.
Widespread prescription opioid addiction has led to record
overdose rates nationwide, causing alarm among public-health
officials, law enforcement and politicians. Those who become
addicted to prescription pills often switch to illegal opioids,
like heroin, when the painkillers become harder to come by.
Mr. Balderas, a Democrat, said he began his investigation soon
after taking office in 2015. He said he hopes through the
litigation to require any companies selling or bringing opioids
into the state to put money toward drug treatment, law enforcement
and first responders.
The state estimates it spent $890 million in 2007 alone on costs
associated with prescription opioid abuse, including through excess
medical costs, lost earnings from premature deaths and costs tied
to correctional facilities and police.
Write to Sara Randazzo at sara.randazzo@wsj.com
(END) Dow Jones Newswires
September 07, 2017 18:55 ET (22:55 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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