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The state of West Virginia decided on Wednesday to sue the country's largest drug distributor, accused of shipping nearly 100 million doses of opioid addiction to residents over a six-year period.
The lawsuit accused the McKesson Corporation of passing profits ahead of the well-being of locals by failing to investigate, report or stop suspicious drug orders, as required by law, and to feed a generalized drug epidemic.
McKesson, the sixth largest US company in terms of revenue, reported more than $ 208 billion last year. The giant distributor has shipped enough hydrocodone and oxycodone to provide each lawful patient with nearly 3,000 doses, state officials said.
Tiny Boone County, which has fewer than 25,000 residents, received 1.2 million doses of hydrocodone and oxycodone between 2007 and 2012, according to the complaint.
McKesson vigorously denied the allegations Wednesday. April Marks, a spokeswoman for the company, said in a statement prepared that the company "is committed to working with others to end this national crisis, and welcomes that the regulation provides funding for initiatives to fight the epidemic of opioids ".
Under the settlement, McKesson will pay $ 37 million to West Virginia. Nearly half of the amount must be paid within three business days of returning the case, with the balance to be paid in annual installments over five years.
Senator Joe Manchin, West Virginia Democrat, described the settlement as a "setback" as a "favor agreement" that "sells" the state. "It's money in dollars for what McKesson has cost our state," Manchin said.
The state will use some of the settlement money to "strengthen the collective fight against drug abuse in West Virginia," according to a statement released by Gov. Jim Justice and Attorney General Patrick Morrisey.
The funds will be used to fund state initiatives, including rehabilitation, vocational training and mental health programs.
More than 30 states and more than 1,600 cities, counties and other entities have filed lawsuits against drug distributors, manufacturers and pharmacies for their role in the opioid crisis. But heavy fines and regulations are not new to large drug distributors and may have little impact on their profits.
McKesson reached a settlement of $ 150 million with the Department of Justice in 2017 as a result of similar allegations and paid $ 13.25 million to settle other federal claims as early as 2008.
[[[[Learn more about the role of drug distributors in the opioid crisis.]
The three largest drug distributors – McKesson, Amerisource Bergen and Cardinal Health – supply more than 90% of the country's medicines and medical products and are among the 15 largest US companies in terms of turnover.
McKesson has stepped up its monitoring of controlled substance distribution in recent years, Marks said, and uses sophisticated algorithms to control suspicious orders and block shipments to pharmacies that reach predefined limits. Suspicious orders are reported to the federal Drug Enforcement Administration, she said.
In West Virginia, deaths from overdose of hydrocodone and oxycodone increased by 67% between 2007 and 2012. The state has the highest opioid overdose rate in the country, according to the Trust for America's Health.
The epidemic drew the country's attention following a series of Pulitzer Prize-winning articles in the Charleston Gazette-Mail highlighting the role of the giant distributors, who carry drugs from manufacturers to all. hospitals, clinics and pharmacies.
The companies have shipped huge amounts of hydrocodone and oxycodone to poor rural counties of West Virginia, violating the rules requiring dealers to report and stop suspicious orders for narcotics. signaling possible illegal use and diversion, the newspaper reported.
With the agreement signed Wednesday, pharmaceutical companies and distributors have agreed to pay a total of about $ 84 million to West Virginia, the largest deal with pharmaceutical companies in history, said a spokesman.
The state has already paid $ 20 million against Cardinal Health and Amerisource Bergen, which will pay $ 16 million.
In the last two decades, According to the Centers for Disease Control and Prevention, more than 200,000 people have died in the United States from an overdose involving prescription opioids.
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