Bankrupt drugmaker Endo International announced on Tuesday that a U.S. Bankruptcy Court has given the green light to its restructuring plan and associated opioid settlements, paving the way for its emergence from bankruptcy proceedings initiated in 2022. The company anticipates finalizing the transaction by late April.
Under the terms of the bankruptcy plan, over 95% of Endo’s ownership will be transferred to its consortium of lenders, comprising investment firms such as Oaktree Capital Management, Silver Point Capital, and Bain Capital.
Last month, Endo committed to paying up to $465 million over ten years to settle claims totaling over $7 billion. These claims encompass purported tax obligations, a criminal probe into the company’s opioid marketing practices, and potential government overpayments for its medications.
Endo sought bankruptcy protection in August 2022 to tackle its staggering $8 billion debt load and confront thousands of lawsuits implicating its alleged involvement in the U.S. opioid crisis.
As part of the bankruptcy reorganization, the company has also agreed to disburse approximately $600 million in settlements to affected states and individuals grappling with the repercussions of the opioid epidemic. Additionally, Endo has pledged to cease the promotion of opioids to healthcare prescribers.
Among Endo’s products was Opana ER, a long-acting opioid painkiller that was withdrawn from the market in 2017 following the FDA’s determination that its benefits did not outweigh the public health risks linked to opioid misuse.
The U.S. opioid epidemic has exacted a devastating toll, with government data indicating over half a million overdose deaths spanning more than two decades.
In recent years, fentanyl and synthetic analogs have emerged as significant contributors to the crisis. Consequently, states, local governments, healthcare institutions, and individuals have initiated thousands of lawsuits against entities allegedly complicit in fueling the epidemic.
These legal actions have culminated in settlements exceeding $50 billion with pharmaceutical manufacturers, distributors, and pharmacy chains.
