(Reuters) – Teva Pharmaceutical Industries and AbbVies Allergan reached a $ 161.5 million deal to settle companies fueling an opioid epidemic in West Virginia, state prosecutor Patrick Morrisey said Wednesday.
The agreement is the largest state-negotiated deal in West Virginia’s history and consists of $ 134 million in cash plus the grant from drugs used to treat opioid overdoses, Morrisey said at a news conference.
West Virginia had accused Teva and Allergan of deceiving prescribers about the risks of opioids when they market their drugs for the treatment of chronic pain. The misleading marketing led to an increase in substance abuse and overdose deaths, according to West Virginia̵7;s complaints.
The settlement concluded a two-month trial in Kanawha County Circuit Court. The companies did not recognize crime as part of the settlement.
The state’s decision to proceed with the trial helped it secure more money, Morrisey said.
“We took great risks to do the right thing, and it has paid off big for West Virginia,” he said.
Teva said it will pay $ 83 million in cash and provide a 10-year supply of Narcan, a drug used to stop opioid overdoses, which the state valued at $ 27 million. Allergan said it will pay $ 51.2 million.
West Virginia has been particularly hard hit by opioid abuse and overdoses, with more than three times the national percentage of overdose deaths by 2020, according to the U.S. Centers for Disease Control and Prevention.
West Virginia previously reached a $ 99 million deal with Johnson & Johnson and a $ 26 million deal with Endo International PLC. Endo settled before the trial began and J&J settled two weeks into the trial.
Israel-based Teva has sought to reach a nationwide settlement to resolve opioid lawsuits against the company and has said it expects an agreement by the end of the year.