Purdue Pharma, originally the Purdue Frederick Company, was a privately held pharmaceutical company acquired by the Sackler brothers in 1952. The Sackler family and their descendants primarily owned the company. Purdue Pharma is most notably associated with the development and aggressive marketing of the opioid painkiller OxyContin, which contributed significantly to the opioid crisis in the United States. The company faced numerous lawsuits and legal challenges related to its marketing practices and the addictive nature of OxyContin, ultimately leading to bankruptcy proceedings and settlements involving billions of dollars.
In 1952, John Purdue Gray sold the Purdue Frederick Company to Arthur, Mortimer, and Raymond Sackler.
In 1952, brothers Arthur, Raymond, and Mortimer Sackler purchased the Purdue Frederick Company and relocated it to Yonkers, New York.
In 1972, Purdue Pharma developed Contin, a controlled drug-release system.
In 1984, Purdue Pharma released MS Contin, an extended-release formulation of morphine.
In 1987, Arthur Sackler passed away, and his share in Purdue Frederick Company was passed on to his brothers.
In 1991, Purdue Pharma L.P. was incorporated with a focus on pain management medication.
Between January 31 and February 2, 1995, Purdue Pharma representatives met with FDA medical review officer Dr. Curtis Wright IV in a hotel room near the FDA offices. Purdue helped draft the medical officer's review of OxyContin for the FDA.
In 1996, OxyContin was released after FDA employee Curtis Wright approved its use on a 12-hour dosage cycle.
Between 1997 and 1999, over a hundred internal company memos included the words "street value", "crush", or "snort", indicating awareness of OxyContin abuse.
In 1997, there were about 670,000 prescriptions for pain.
Between 1997 and 1999, over a hundred internal company memos included the words "street value", "crush", or "snort", indicating awareness of OxyContin abuse.
In 1999, Richard Sackler, son of Raymond Sackler, was named president of Purdue Pharma.
In 1999, the "non-malignant pain market" was a much larger market than that for cancer-related pain, making up 86% of the total opioid market.
In 1999, the opioid crisis began to take hold in the United States, with increasing numbers of deaths related to prescription and illicit opioids. Richard Sackler was named president of Purdue Pharma in 1999, and the company marketed OxyContin aggressively, leading to increased prescriptions for less serious pain. By 1999, Purdue trained its sales representatives to convey to doctors that the risk of addiction from OxyContin was "less than one percent." In 1999, the "non-malignant pain market" made up 86% of the total opioid market.
In 2000, reports of OxyContin abuse began to surface, with Purdue Pharma's RADARS program identifying Oxycontin and hydrocodone as the most commonly abused pain medications.
In 2019, Senators Sheldon Whitehouse and Maggie Hassan requested the Justice Department give them a copy of a memo regarding Purdue Pharma executives, citing concerns that executives may have lied to Congress about their knowledge of OxyContin abuse and diversion before 2000.
In 2001, Connecticut Attorney General Richard Blumenthal issued a statement urging Purdue to take action regarding abuse of OxyContin, noting that beyond "cosmetic and symbolic steps", little action was being taken. He emphasized Purdue's moral obligation to address addiction and abuse, even as it worked to reformulate the drug.
In 2002, there were about 6.2 million prescriptions for pain.
In 2003, Richard Sackler became co-chairman of the board at Purdue Pharma.
In 2003, the Drug Enforcement Administration (DEA) found that Purdue's "aggressive methods" had "very much exacerbated OxyContin's widespread abuse."
In 2004, the West Virginia Attorney General sued Purdue for reimbursement of "excessive prescription costs," alleging deceptive marketing due to patients taking more OxyContin than prescribed because its effects wore off before the 12-hour schedule. The state charged Purdue with deceptive marketing. The case never went to trial; Purdue agreed to settle by paying the state US$10 million (equivalent to approximately $17M in 2024) for programs to discourage drug abuse.
In October 2006, a US Department of Justice internal memorandum revealed that government prosecutors found evidence that executives at Purdue Pharma may have committed multiple crimes, including wire fraud and money laundering, to boost sales of OxyContin.
In 2006, the Justice Department conducted a review of Purdue documents regarding OxyContin's FDA approval process in 1995.
In May 2007, Purdue pleaded guilty to misleading the public about OxyContin's risk of addiction and agreed to pay $600 million (equivalent to approximately $910M in 2024). The company's president, top lawyer, and former chief medical officer pleaded guilty as individuals to misbranding charges and agreed to pay a total of US$34.5 million in fines and were sentenced to community service.
On October 4, 2007, Kentucky officials sued Purdue due to widespread OxyContin abuse in Appalachia, demanding millions in compensation.
In 2007, Purdue Pharma faced a felony conviction for criminal misbranding related to the marketing and labeling of OxyContin.
In 2007, Purdue Pharma paid one of the largest fines ever levied against a pharmaceutical firm for misleading the public about the addictive nature of OxyContin.
In 2007, Rhodes Pharmaceuticals, a sister company to Purdue Pharma, was established in Rhode Island.
In January 2017, the city of Everett, Washington sued Purdue based on increased costs to the city from OxyContin use, and Purdue's failure to intervene when they noted odd sales patterns of their product, per agreement in the 2007 suit noted above. The allegations say Purdue did not follow legal agreements to track suspicious excess ordering or potential black market usage. The suit says false clinics created by unscrupulous doctors used homeless individuals as 'patients' to purchase OxyContin, then sold it to the citizens of Everett.
In mid-2007, a $654m settlement between Purdue and the government over deceptive marketing claims fell far short of what prosecutors had actually sought just six months earlier.
In 2008, Purdue started the OxyContin "Savings Card" program, which gave patients discounts on their first five prescriptions. Internal company data showed these discounts led to 60 percent more patients staying on OxyContin for longer than 90 days. The court filing for Massachusetts stated, "Purdue determined that opioid savings cards worked like the teaser rate on a long-term and very high-stakes mortgage."
Mortimer Sackler died in 2010.
In 2012, The New England Journal of Medicine published a study that found 76% of people seeking help for heroin addiction started by abusing pharmaceutical narcotics, primarily OxyContin, drawing a direct line between Purdue's marketing of OxyContin and the subsequent heroin epidemic in the U.S.
In September 2015, Purdue Pharma announced it would acquire VM Pharma, gaining access to the Phase II candidate VM-902A, with a potential deal value of over US$213 million.
On December 23, 2015, Kentucky settled with Purdue for $24 million regarding the 2007 lawsuit.
By 2016, Purdue Pharma's cumulative revenues had increased to US$31 billion.
In 2016, Forbes magazine listed the Sackler family as one of the 20 wealthiest families in the U.S.
In 2016, an investigation by the Los Angeles Times reported that OxyContin's 12-hour schedule often failed to adequately control pain, leading to withdrawal symptoms and drug cravings for many patients. This suggests that the drug wore off after eight hours or less for most patients.
In January 2017, the city of Everett, Washington sued Purdue based on increased costs to the city from OxyContin use, and Purdue's failure to intervene when they noted odd sales patterns of their product, in violation of the 2007 suit agreement. The suit alleges Purdue did not track suspicious excess ordering or potential black market usage, with false clinics using homeless individuals as 'patients' to purchase OxyContin and sell it to Everett citizens.
On June 22, 2017, Craig Landau was appointed CEO of Purdue Pharma L.P.
By 2017, Purdue Pharma's cumulative revenues had increased to US$35 billion.
In 2017, McKinsey consultants suggested that Purdue Pharma pay pharmaceutical distributors a rebate for every overdose attributed to the pills the distributor sold.
Raymond Sackler died in 2017.
In May 2018, a confidential Justice Department report revealed that Purdue was aware of OxyContin pills being crushed and snorted, stolen from pharmacies, and doctors selling prescriptions.
In May 2018, six states—Florida, Nevada, North Carolina, North Dakota, Tennessee, and Texas—filed lawsuits against Purdue, charging deceptive marketing practices, adding to 16 previously filed lawsuits by other U.S. states and Puerto Rico.
In July 2018, Steve Miller became chairman of Purdue Pharma.
By January 2019, 36 states were suing Purdue Pharma over its role in the opioid crisis.
In March 2019, Purdue Pharma reached a $270 million settlement in a lawsuit filed by Oklahoma, which claimed its opioids contributed to the deaths of thousands of people.
In August 2019, Purdue Pharma and the Sackler family were in negotiations to settle claims for a payment of $10-$12 billion. The settlement would involve Purdue filing for Chapter 11 bankruptcy and restructuring as a public beneficiary trust. The Sackler Family would give up ownership, and addiction treatment drugs developed by Purdue would be given to the public cost-free. The Sackler family would contribute $3 billion in cash, sell Mundipharma, and contribute another $1.5 billion from sales. However, the Sackler family would remain a billionaire family and would not be criminally charged for contributing to the opioid crisis. Purdue subsequently filed for bankruptcy.
On September 15, 2019, Purdue Pharma filed for Chapter 11 bankruptcy protection in New York City.
In September 2019, the office of the New York Attorney General accused the Sackler family of hiding money by wiring at least $1 billion from company accounts to personal accounts overseas.
In December 2019, an audit from AlixPartners revealed that the Sackler family withdrew $10.7 billion from Purdue after the company began to receive legal scrutiny.
As late as 2019, Purdue Pharma continued to market and sell opioids despite lawsuits related to the opioid epidemic in the United States.
By 2019, over 1,000 lawsuits have been initiated against Purdue by state and local governments, with states across the USA filing claims for more than $2 trillion in the Purdue Pharma bankruptcy case.
By early 2019, the Sackler family members had departed the Purdue Pharma board, leaving a board of five members.
In 2019, Massachusetts Attorney General Maura Healey filed a lawsuit against Purdue Pharma, also claiming eight members of the Sackler family were "personally responsible" for deceptive sales practices, alleging they had "micromanaged" a "deceptive sales campaign".
In 2019, Purdue Frederick Company changed its name to Purdue Pharma L.P.
In 2019, Senators Sheldon Whitehouse and Maggie Hassan requested the Justice Department give them a copy of a memo regarding Purdue Pharma executives, citing concerns that executives may have lied to Congress about their knowledge of OxyContin abuse and diversion before 2000.
In October 2020, Purdue agreed to an $8 billion settlement that included a $2 billion criminal forfeiture, a $3.54 billion criminal fine, and $2.8 billion in damages for its civil liability. It would plead guilty to three criminal charges, become a public benefit company under a trust required to consider American public health, and the Sacklers would not be permitted to be involved in the new company.
On October 21, 2020, Purdue Pharma reached a settlement potentially worth US$8.3 billion, admitting to conspiring to aid doctors dispensing medication without a legitimate medical purpose. The Sackler family will additionally pay US$225 million, and the company will close.
By 2020, nearly 841,000 people had died from drug overdoses in the United States since 1999, with opioids responsible for 500,000 of those deaths.
In March 2021, the United States House of Representatives introduced a bill to stop the bankruptcy judge from granting legal immunity to the Sackler family during the bankruptcy proceedings.
In August 2021, US Representatives Carolyn Maloney and Mark DeSaulnier introduced a SACKLER Act to prevent people who have not filed for bankruptcy from being released from lawsuits brought by states, municipalities, or the U.S. government.
In September 2021, Purdue Pharma announced its intention to rebrand itself as Knoa Pharma.
In September 2021, Purdue won approval of a $4.5 billion (US) plan to dissolve the company and restructure it into a public benefit corporation focused on addressing the opioid crisis and repaying individuals and families damaged by its products. This was to be financed by settlement with the Sackler family, insurance payments and ongoing business operations and would eliminate the family's exposure to civil litigation.
In October 2021, the House Judicial Committee referred the bill regarding Sackler family immunity to the Subcommittee on Antitrust, Commercial, and Administrative Law.
In December 2021, the $4.5 billion Purdue settlement was overturned by Judge Colleen McMahon of the U.S. District Court for the Southern District of New York, on the basis that the bankruptcy code did not permit a judge to release the Sacklers from civil liability.
In 2021, McKinsey & Company reached a settlement with the attorneys general of 47 states, the District of Columbia, and five territories to pay $537 million and to agree not to work with certain narcotics manufacturers. Kevin Sneader stated, "With this agreement, we hope to be part of the solution to the opioid crisis in the U.S."
In 2021, Purdue Pharma's downfall was the subject of the Hulu miniseries Dopesick and the HBO film The Crime of the Century.
In 2021, the Sacklers sought a controversial ruling from judge Robert D. Drain to grant them immunity and protect their assets from lawsuits linked to the opioid crisis. They sought bankruptcy-like protection without filing for personal bankruptcy.
In March 2022, a U.S. bankruptcy judge approved a settlement requiring the Sacklers to pay between $5.5 and $6 billion to a trust for opioid creditors. This decision would shield the Sacklers from personal civil liability.
In January 2023, the bill aimed at preventing legal immunity for the Sackler family in bankruptcy proceedings lapsed at the end of the 117th Congress.
As of May 2023, in response to Purdue's role in the opioid crisis and organized pressure by P.A.I.N., at least 20 institutions have dropped the Sackler name, including the Metropolitan Museum of Art, and Yale University in the USA; and the National Gallery in London. Other institutions have stopped accepting donations from the Sackler family, because their philanthropy has been characterized as reputation laundering from profits acquired from the selling of opiates.
In May 2023, the U.S. Second Circuit Court of Appeals endorsed the $6 billion settlement, with the Sackler family giving up ownership of Purdue and profits being sent to a fund to prevent and treat opioid addiction. This ruling reversed a lower court decision and would shield the Sacklers from opioid-related lawsuits.
On August 10, 2023, the Supreme Court of the United States paused the bankruptcy settlement and agreed to hear an appeal regarding the legality of shielding the Sackler family from civil lawsuits.
As at August 2023, the SACKLER act introduced in August 2021 has not passed into law.
As of August 2023, Purdue Pharma remains in Chapter 11 bankruptcy, pending a Department of Justice appeal to the United States Supreme Court regarding the bankruptcy proceedings.
In 2023, Purdue Pharma's downfall became the subject of the Netflix series Painkiller, in addition to several documentaries and books.
On June 27, 2024, the Court ruled in Harrington v. Purdue Pharma L.P., overturning the settlement in a 5-4 decision and remanding the case to the lower court. The majority ruled the settlement was illegal because the US Bankruptcy Code does not permit granting liability relief to a party, like the Sackler family, that did not file for bankruptcy protection.
In 2004, the West Virginia Attorney General sued Purdue for reimbursement of "excessive prescription costs," alleging deceptive marketing due to patients taking more OxyContin than prescribed because its effects wore off before the 12-hour schedule. The state charged Purdue with deceptive marketing. The case never went to trial; Purdue agreed to settle by paying the state US$10 million (equivalent to approximately $17M in 2024) for programs to discourage drug abuse.
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