Wisconsin Health News

Attorney General Josh Kaul said Wednesday that an agreement with a generic drugmaker will help provide more resources to fight the opioid epidemic. 

Ireland-based Mallinckrodt, currently the largest generic opioid manufacturer in the United States, announced Tuesday that it's tentatively agreed to pay $1.6 billion to settle thousands of lawsuits related to the epidemic. 

Under the deal, the company's future generics opioid business would be subject to strict rules that prevent marketing. The company would also have to ensure systems are in place to prevent diversion. 

“Getting accountability from pharmaceutical companies is an important part of our strategy for fighting the opioid epidemic,” Attorney General Josh Kaul said in a statement. “With this agreement, more resources will be available to help combat this crisis.”

Mallinckrodt is the subject of a multi-state investigation that Wisconsin is participating in, said DOJ spokeswoman Rebecca Ballweg.

Negotiation of how the funds will be distributed is ongoing, she added. The agency is focused on ensuring that the money goes to addressing the opioid epidemic. 

The agreement, subject to court approval and other conditions, is backed by a group of 47 state and U.S. territory attorneys general. 

The majority of payments would go to a trust that would establish an abatement fund to cover the cost of opioid-addiction treatment and provide support to communities impacted by the crisis. 

The settlement would become effective after the company’s subsidiaries focused on specialty generics go through a court-supervised bankruptcy process. 

Mallinckrodt CEO Mark Trudeau said that reaching the agreement and associated debt refinancing activities will help resolve uncertainties in their business related to the litigation and provide a “clear path forward to achieving our long-term strategy.”

Last May, Kaul announced Wisconsin filed lawsuits against two Purdue Pharma entities and Richard Sackler, alleging deceptive and false marketing practices in the sale of opioids.

Wisconsin is part of multi-state investigations of opioid distributors Amerisource Bergen, Cardinal Health and McKesson.

Wisconsin counties have sued over the opioid crisis.