Virginia Receives First Payment in Big Pharma Opioid Settlement

Virginia has received $67.4 million, the first payment in a Johnson & Johnson settlement requiring its subsidiary Janssen Pharmaceuticals to stop selling opioids in the U.S.; the commonwealth will receive about $99.3 million total from the company over nine years.

“I’m thrilled that the money from these record-breaking settlements is on its way. My consumer protection section worked tirelessly to ensure that Virginians received the most funding possible and received it as quickly as possible. This helps the Commonwealth and individual localities fight back against the opioid epidemic and reduce, prevent, and treat addiction,” Attorney General Jason Miyares said in a press release.

The settlement also included pharmaceutical distributors Cardinal Health, McKesson, and AmerisourceBergen, and in February, Miyares announced that Virginia will get about $530 million from the companies. Most of that money will go to Virginia’s Opioid Abatement Authority (OAA), which is projected to receive almost $286.2 million; $117 million will be divided among Virginia localities, $90.6 million will go to the Commonwealth of Virginia, and $39 million to a deficiency fund in case money is needed to pay attorneys’ fees. So far, Virginia has received about $108.3 million.

Of the funds from the initial Johnson & Johnson payment, $39.8 million goes to the OAA, $16.3 million goes to localities, and $11.3 million goes to the state.

Through the settlement, the companies didn’t admit responsibility for the opioid crisis, but agreed to severely curtail its opioid activity. Johnson & Johnson can’t sell opioids in the U.S., can’t lobby or promote in relation to opioids, and must share clinical trial data. The distributors have to block suspicious opioid distribution and must create a centralized source of data for regulators.

Chair of the Opioid Abatement Authority State Senator Todd Pillion (R-Marion) said when the funds were announced in February, “The opioid epidemic has touched lives in every county, city, and corner of the Commonwealth. This historic settlement will provide resources to help us fight back against opioid addiction and create lasting impact in our communities. It’s time to get to work.”

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Eric Burk is a reporter at The Virginia Star and The Star News Network. Email tips to [email protected].

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