Startup News

Purdue Pharma Mulls Filing For Bankruptcy

The lawsuits which arose due to the severe opioid crisis in the US, have led the OxyContin maker to consider the prospect of filing for bankruptcy

The United States is in the midst of a serious opioid crisis. The National Institute of Drug Abuse reported more than 130 people succumb to opioid overdosing on a daily basis. However, these fatalities were not just being caused by recreational drugs. An alarming number of people were falling prey to prescription drug abuse. OxyContin, an opioid based prescription painkiller, is now the leading reason for the addiction crisis in the country, and Purdue Pharma, the makers of the drug, are now faced with making some challenging decisions as the owners have been hit by a slew of lawsuits.

Purdue Pharma and their owners, the Sackler family, are facing over 2000 lawsuits from varied sources owing to the addiction problem and steep number of fatalities from overdosing. Purdue is facing flak for misleading consumers by falsely advertising the product as free of side effects. Initially when OxyContin hit the market, there were a lot of concerns about the use of opioids as a prescription drug, due to their strong addictive nature. These concerns were squashed by Purdue’s dicey yet aggressive marketing strategy, which gave the masses and physicians false information about the drug, completely denying the underlying side effects. The lawsuits piling up has led the firm to contemplate the idea of filing for bankruptcy.

Many states across the US have taken matters into their own hands, organizing awareness drives and programs to help victims combat the addiction problem. Educational initiatives are helping masses recognize the solely profit oriented agenda of such companies. “As a privately-held company, it has been Purdue Pharma’s longstanding policy not to comment on our financial or legal strategy, we are, however, committed to ensuring that our business remains strong and sustainable. We have ample liquidity and remain committed to meeting our obligations to the patients who benefit from our medicines, our suppliers and other business partners” Purdue said in their official statement.