Baltimore’s mayor said the victory validates efforts to hold companies accountable. Image credit: Shutterstock/Mario Hagen.

Teva Pharmaceuticals has reached an $80m settlement with the city of Baltimore for its role in worsening the opioid epidemic, validating the city’s decision to opt out of a larger national case last year.

If Baltimore had joined other parties in the nationwide settlement, it would have received $11m over 13 years from Teva. Instead, Teva will now fork out an initial payment of $35m by the end of 2024 as part of the city’s claim, with the remaining $45m paid by July next year, as per a Baltimore City Hall press release.

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The settlement brings Maryland’s most populous city’s total recovery in opioid settlements to $322.5m, having inked previous payouts with Allergan and CVS for $45m each, in addition to a $152.5m settlement with Cardinal Health.

Funds will go towards education and outreach efforts about the 988 system, the Penn North Recovery Center, and peer support team BMore Power, amongst others.

Baltimore’s mayor Brandon Scott said the victory further validates efforts to hold companies accountable for propagating the opioid crisis. “Nothing can undo the harm that they caused or bring back the lives lost, but we are determined to implement these resources in a way that helps move our city’s fight against this epidemic forward,” Scott added.

Meanwhile, Teva will pay up to $3.34bn over 13 years as part of its nationwide settlement with all 50 US states. The agreement also includes either $1.2bn worth of a generic version of the opioid-overdose reversal drug Narcan or $240m of cash, as decided by each state.

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Teva reached an agreement with the final state – Nevada – in June last year, outlaying $193m over 20 years.

“While the final agreement includes no admission of wrongdoing, it remains in the Company’s best interest – and in the interest of those impacted by the opioid crisis – to conclude this settlement,” Teva said in a statement at the time.

Lawsuits against drug manufacturers and pharmacy chains have centred on various issues like deceptive marketing practices, downplaying addiction risks, and oversupplying prescription opioids.

One of the largest opioid settlements to date included Johnson & Johnson, AmerisourceBergen, Cardinal Health and McKesson – together agreeing to pay $26bn to seven states in 2021.

OxyContin producer Purdue Pharma lost its attempt to shield future litigation in June this year, with the US Supreme Court blocking a $6bn settlement that would have afforded the Sackler family – who own the company – immunity.