Think Your Prescription Drugs are Safe? – Pharmaceutical Companies Have Racked Up $82 Billion in Fines in Just the Past 10 Years

October 26, 2023 · Cannabis.net

It’s high time for pharmaceutical companies that have been exposed for misleading the public to face the consequences. According to a recent report from ConsumerShield, the past decade has witnessed a surge in settlements and fines within the pharmaceutical sector, surpassing a staggering $80 billion.

Published on October 17, ConsumerShield’s report titled “Balancing Profits, Penalties, and Public Safety in the Pharmaceutical Industry” sheds light on the fact that a significant portion of these infractions is related to synthetic opioids, notorious for their addictive nature and potential to cause respiratory distress.

London Loves Business, in its coverage of the study, reveals that since 2010, the pharmaceutical industry has been slapped with penalties amounting to $82.8 billion across more than 500 documented cases. These violations encompass issues such as disregarding drug and medical device safety standards, promoting medical products without proper authorization, breaching the False Claims Act, and a range of other transgressions.

The primary offender in this regard, Johnson & Johnson, tops the list with more than 45 recorded violations during the study period, resulting in a staggering total of $24.5 billion in penalties. An astonishing $18 billion of these penalties was paid by Johnson & Johnson within the last five years, solely about opioid and talc cases.

Following closely is Teva Pharmaceuticals, facing penalties amounting to $8.5 billion, while AbbVie shoulders a hefty $7.1 billion in penalties. GSK plc is just a little behind with penalties totaling $5.6 billion, and Pfizer, too, has faced penalties of $3.2 billion.

The report also highlights noteworthy settlements, with one case particularly prominent: the Purdue Pharma case, which mandated an $8.3 billion payment. On October 21, 2020, the Department of Justice announced a substantial fine, marking the culmination of its criminal and civil investigations into Purdue Pharma, the opioid manufacturer, and a civil resolution regarding individual shareholders from the Sackler family.

Purdue and the Sacklers persisted in promoting OxyContin and other opioid products to over 100 healthcare providers despite the company being aware of substantial evidence indicating the diversion of opioids and the provision of misleading information to the DEA to inflate Purdue’s production quotas.

During this tragic period, hundreds of thousands of individuals succumbed to fatal overdoses. The CDC’s 2021 report revealed that opioids played a devastating role in this crisis, with synthetic opioids being implicated in nearly 88% of overdose deaths. In 2021, opioids were directly responsible for a staggering 80,411 overdose-related fatalities, constituting 75.4% of all drug overdose deaths.

This grim peak in overdoses led to a sobering contrast when compared to heroin-related fatalities, which numbered just 9,000 in 2021 unless they were combined with other opioids. The incidence of synthetic opioid overdoses, however, was almost ten times higher.

Deputy Attorney General Jeffrey A. Rosen underscored the impact of prescription opioid misuse and diversion, emphasizing that it has contributed to a nationwide tragedy of addiction and loss of life, in addition to the harm caused by illicit street opioids. He also noted that the Department of Justice’s relentless pursuit of justice in the face of the opioid crisis is evident in the criminal guilty pleas, a federal settlement exceeding $8 billion, and the dissolution of a company, redirecting its assets for the public’s benefit.

While many are aware of the devastating consequences of the opioid epidemic, it’s essential also to consider the issue of talc. Pharmaceuticals have the potential to harm individuals in other ways. Lawsuits related to talcum powder allege that consumers developed cancer after using Johnson & Johnson’s talc-based baby powder.

A Grave Warning

The ConsumerShield report opens with a solemn warning stating that it is with a profound sense of urgency and a strong sense of responsibility that the report embarks on a thorough exploration of the current dynamics within the pharmaceutical industry.

The investigation is aimed at unraveling whether the ever-increasing profits are unintentionally casting a shadow over the crucial requirements of consumer safety, ethical promotional practices, and innovative research endeavors.

The notable contrast between investments in research and development and the lavish spending on marketing, along with the persistent presence of unethical conduct despite substantial penalties, compels a comprehensive assessment of the industry’s dedication to ethical standards and the well-being of consumers.

ConsumerShield’s representatives express deep concern over the implications of the data. Jane Doe, a Senior Analyst at ConsumerShield, during an interview with London Loves Business, noted that the stark contrast between the surging revenues and the rising penalties is genuinely disconcerting. However, what’s even more alarming is the evident divergence between companies’ investments in research and development (R&D) and their massive marketing expenditures.

The False Claims Act serves as the federal government’s primary legal tool in combating fraud against the government, with a component dedicated to safeguarding consumer rights.

Pharmaceutical companies found guilty of engaging in unlawful off-label marketing or promoting their medications have incurred substantial financial penalties under the Federal False Claims Act. Various individuals frequently initiate these cases.

These include pharmaceutical sales representatives, sales managers, compliance officers, other pharmaceutical company staff, physicians, nurses, as well as employees in healthcare facilities or medical practices, as outlined in the summary of the False Claims Act Pharmaceutical Fraud.

The report underscores the consequences of marketing opioids despite being well-informed about their potentially lethal effects, even in cases where opioids are genuinely required to manage severe pain.

Conclusion

The pharmaceutical industry’s ethical and public health concerns are underscored by substantial penalties imposed under the Federal False Claims Act. These penalties result from illegal off-label marketing practices, often revealed by various individuals within the industry and healthcare sector. The report also highlights the severe consequences of marketing opioids despite clear warnings of their risks.

Striking a balance between profits and public safety, prioritizing ethical practices, and fostering genuine innovation remains a significant challenge for the industry. Continued scrutiny and concerted efforts are essential to uphold ethical healthcare practices, protect public health, and ensure pharmaceutical companies prioritize research and responsible marketing. (Full Story)

In category:Legal
Next Post

Marijuana Companies Sue Attorney General To Block Enforcement Of ‘Unconstitutional’ Federal Prohibition

A coalition of marijuana businesses represented by an influential law firm has filed a much-anticipated lawsuit against the U.S. attorney general, seeking to block the federal government from enforcing cannabis prohibition against their state-legal activity. They claim perpetuating prohibition in state markets…
Read
Previous Post

Nevada Commission Seeks Comment On Plan To Let People With Marijuana Convictions Become Police Officers

A Nevada commission will hear public comment this week on a proposal that would amend hiring standards for police officers to allow job candidates who were previously disqualified for certain marijuana-related offenses to be eligible for law enforcement positions. The change being…
Read
Random Post

Ohio Bills To Change Voter-Approved Marijuana Law Pushed Back To 2024 As House Committee Holds Third Hearing On GOP Proposal

Ohio lawmakers will not be amending the state’s voter-approved marijuana law this year despite a Republican-led push to expedite changes. The Senate has passed a bill to make changes, and a House committee has held a series of hearings on…
Read
Random Post

Trade Group Offers Guidance To Marijuana Businesses On How To Find Banking Services Amid Federal Prohibition

With the congressional effort to remove federal restrictions on marijuana banking still ongoing, a coalition of financial institutions has released new guidance for cannabis businesses trying to secure banking services. While compliance can be onerous compared to banking for most businesses,…
Read
Random Post

Germany Scales Back Its Cannabis Legalization Plan

German officials have announced they are scaling back their widely anticipated cannabis legalization plan following a discussion with European Union officials, the Associated Press reports. The new plan, revealed on Wednesday, is to legalize cannabis possession of up to 25 grams and establish nonprofit…
Read
Random Post

Here's What Needs To Happen Next For Marijuana Stocks To Be Uplisted On Major US Exchanges

President Biden's recent announcement regarding marijuana pardons was a historic step toward cannabis legalization on the federal level. The next one is a review of cannabis' legal status, said Bloomberg Intelligence analyst Kenneth Shea. Biden in fact said he would ask the Attorney General and Department of…
Read