[ad_1]
Reckitt Benckiser has agreed to pay up to US $ 1.4 billion to the US authorities for the largest sanction related to the opioid crisis in the country.
The agreements between the Department of Justice and the Federal Trade Commission resolve investigations of how a former subsidiary had marketed a drug used to treat badgesic addiction.
US authorities allege that the company – owned by Reckitt until 2014 – had made unsubstantiated allegations about a new version of an anti-drug drug, Suboxone. Reckitt split the subsidiary in 2014 into a separate company listed in the United Kingdom called Indivior.
The settlement decision comes just three months after a Virginia federal grand jury indicted Indivior and asked him for at least $ 3 billion fine for trying to increase sales of Suboxone, its the best-selling drug, thanks to a fraudulent scheme. .
Reckitt's regulation to date is the largest in a crisis that has claimed the lives of 200,000 Americans and left about 2 million people suffering from opioid-related disorders, according to the Centers for Disease Control and Disease Control. Prevention.
It covers allegations of misconduct from 2006 to 2015. Despite the settlement, Reckitt denies having acted unlawfully.
"Although RB acted lawfully at all times and expressly denies all allegations of unlawful conduct, the RB Board of Directors, after careful consideration, determined that the agreement was in the best interest of the company and its shareholders, "he said. A declaration.
Reckitt, who also manufactures Nurofen painkillers and disinfectant Dettol, is trying to draw a line under the episode while he's looking to boost sales down from his health division.
Although Reckitt was not charged, the case cast a cloud over the company because of the risks it would have to pay for Indivior's legal woes or even to be indicted at a later date. Reckitt previously had a provision of $ 400 million to cover any legal liabilities related to Indivior.
Analysts at Morgan Stanley called the settlement a "clear and positive resolution" for Reckitt, who admitted no fault in the alleged non-suit agreement with the US authorities. Shares of the British company jumped 2.7% early in the session.
The penalty for Reckitt is less than the $ 600 million paid by Purdue Pharma, the most popular opioid pioneer known as OxyContin. Backed by the billionaire Sackler family, the private company is still facing a myriad of state-level lawsuits about the epidemic, and has announced that it plans to declare bankruptcy for to protect yourself.
The agreement comes at a delicate time for Reckitt. A new general manager, Laxman Narasimhan, is expected to take office in September and the company is also preparing the ground for separating its two main activities: health on one side and hygiene and household products on the other. This project, known internally as RB 2.0, is the centerpiece of the company's strategy. Investors feared that uncertainties over US legal issues would slow it down.
The settlement also establishes a fund for US states that funded the Suboxone film for patients under Medicaid, a government-run insurance program. However, each state may choose to participate in the settlement or not, so that the company can still be sued by states that choose to pursue it. Reckitt has also agreed to cooperate with investigations against Indivior, which continues to defend itself. This trial is scheduled for 2022.
Reckitt stated that it would pay for the settlement of $ 1.4 billion through the existing debt facilities and the cash flows generated by the company, and that it would disclose the exact details in its next financial results on July 30th. Patient film on Medicaid and Medicare, government health programs, from 2010 to 2014.
"This avoids the costs, the uncertainty and the distraction related to the continuation of investigations, litigation and the risk of indictment at a time of significant transformation under RB 2.0 and during the transition of the CEO," said the company.
Source link
