Viatris Inc. (NASDAQ:VTRS) on Monday reached a nationwide settlement framework to resolve opioid-related claims by states, local governments, and Tribes against the company and certain of its subsidiaries.
Viatris, in a press release, said that while its presence in the U.S. opioids market is very small, the company has agreed to this settlement to provide closure on these matters.
This settlement is in no way an admission of wrongdoing or liability, the company added.
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Under the agreed upon framework, depending on the level of participation in the settlement, the company would pay up to a maximum of $335 million, consisting of annual payments over nine years between approximately $27.5 and $40 million each, to help support state and local efforts to address opioid-related issues.
The company says it manufactures a generic injectable version of the life-saving overdose reversal drug, naloxone, as well as a generic buprenorphine/naloxone product used for the treatment of opioid addiction.
Viatris is also developing a novel delivery for meloxicam, a non-opioid pain medication.
The company had already accrued an estimate for a potential settlement, which is reflected in its 10-K SEC filing for the year ended Dec. 31, 2024.
The company was a defendant in more than 1,000 cases in the United States and Canada filed by various plaintiffs, asserting civil claims related to sales, marketing and/or distribution practices concerning prescription opioid products.
In addition, lawsuits have been filed as putative class actions, including on behalf of children with Neonatal Abstinence Syndrome due to alleged exposure to opioids.
As of December 31, 2024, the company has accrued approximately $270 million related to the potential resolution of certain matters, which is recorded under other current liabilities in the consolidated balance sheets.
Price Action: VTRS stock is down 1.2% at $7.52 at last check Monday.
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