Virginia is seeing progress in the fight against opioid companies, and that progress includes dollar signs.
Virginia received the first installment of $15 million from a $26 billion national settlement with three opioid distributors: McKesson, AmerisourceBergen, and Cardinal Health, Attorney General Jason Miyares announced last week.
Approximately $4 million of Virginia’s first installment was divided between 133 cities and counties across the state. Most of those localities received their share of the money last Friday, the attorney general’s statement said.
The majority of the money, over $9.9 million, went to the Opioid Abatement Fund (OAF), which is used by the Opioid Abatement Authority to provide financial support in the form of grants, donations, or other assistance, for efforts to treat, prevent, and reduce opioid use disorder and the misuse of opioids in the state.
But the money train from this settlement does not stop there. In total, Virginia is set to receive $530 million from this settlement.
On July 26, Miyares announced a $4.25 billion national settlement was reached with the opioid maker Teva, a company that makes Actiq and Fentora branded fentanyl products for cancer pain, and a number of generic opioids, including oxycodone.
Virginia’s share of that settlement is estimated to be over $70 million. As part of the settlement, Teva has agreed to provide up to $1.2 billion worth of generic naloxone, a drug used to counteract overdoses. According to Miyares’ statement, Virginia has the option to accept a portion of the naloxone or take additional money in lieu of it.
Most of the settlement money that comes into Virginia will go into the OAF, but as with the funds received last week, a portion will be split among the localities.
Finalizing this settlement remains contingent on agreement on critical business practice changes and transparency requirements, said Miyares.
Allergan is a company that made Norco- and Kadian-branded and generic opioids. The company sold its generic drugs portfolio to Teva in 2016.
On July 29, Miyares’ office announced a group of attorneys general reached “an agreement in principle” whereby Allergan will pay up to $2.37 billion to states and local governments.
Of the 13 states negotiating this settlement, Virginia is expected to receive at least $40 million.
This settlement is also contingent upon resolving issues, such as settlement structure, business practice changes and transparency.
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