Iowa to receive over $1M of $100M settlement with opioid treatment manufacturer
Iowa will receive over $1 million in a recently negotiated settlement between 41 state attorneys general and Indivior Inc., the manufacturer of the opioid treatment drug Suboxone.
Suboxone is a drug used to treat opioid addiction by reducing cravings, withdrawal symptoms and the sedative effects of other opioids. The drug contains buprenorphine, described by the Department of Justice as a "powerful opioid." The company previously sold the treatment in tablet form, but later developed a film strip version of Suboxone that has fallen at the center of multiple legal controversies.
Former Iowa Attorney General Tom Miller joined Wisconsin in filing the lawsuit against Indivior in 2016. Forty-one attorneys general across the country accused Indivior of monopolizing the opioid treatment market after the creation of the film strip version through "product hopping," described in a news release as "making small changes to products in order to extend patent protections."
The lawsuit argued this practice allowed Indivior to essentially monopolize the opioid treatment market and "impede competition from generic equivalents." The lawsuit also accused Indivior of false advertising and price adjustments in violation of state and federal antitrust laws, according to the office of current Iowa Attorney General Brenna Bird.
The company disputed the allegations, but agreed to a $102.5 million settlement.
“Iowans deserve freedom and choice in the marketplace,” Bird said in the news release announcing the settlement. “This settlement makes clear that any single company who attempts to illegally control the drug market, or any market, will be held accountable.”
Under the terms of the settlement, Indivior must also disclose information related to new drug products seeking FDA approval to the states involved in the lawsuit. The company must also notify the involved states within 30 days of beginning to market any drug products and must also give at least 30 days' notice prior to any major changes to the corporate structure.
Bird's office wrote in a release that these terms "will help ensure Indivior stops from engaging in future illegal conduct."
In a statement released by the company, Indivior's Chief Executive Officer Mark Crossley expressed gratitude that the legal dispute had come to a close.
“Indivior is focused on helping those who suffer from substance use disorders,” he said. "We take our role as a responsible steward of medications for addiction and rescue extremely seriously. Resolving these legacy matters at the right value allows us to further this mission for patients."
A subsidiary of the company previously pleaded guilty in 2020 to one felony count for falsely advertising Suboxone Film to the Massachusetts Medicaid Program. The company provided false data to claim that the strip version "had the lowest rate of pediatric exposure (i.e., children taking medication by accident) of all buprenorphine drugs in Massachusetts," according to the Department of Justice. The company's then-CEO Shaun Thaxter also pleaded guilty to one count of misdemeanor information in relation to the false statements.
Francesca Block is a breaking news reporter at the Des Moines Register. Reach her at FBlock@registermedia.com or on Twitter at@francescablock3.
Editor's note: This article was updated to clarify the history of the lawsuit.
This article originally appeared on Des Moines Register: Indivior to pay over $1M to Iowa following country-wide lawsuit
