- British consumer drug company Reckitt Benckiser said it will pay up to $1.4 billion to settle all federal investigations related to the https://rbsofts.com of the opioid-dependence product Suboxone film by former subsidiary Indivior. The company denies all wrongdoing but said settling will avoid the “costs, uncertainty and distraction” of continued legal action.
- Indivior, spun out in 2014, separately is facing a criminal indictment for Suboxone https://rbsofts.com practices, and the group said it has no new information related to that activity.
- Reckitt’s settlement is one of many now emerging from crackdowns on opioid https://rbsofts.com, with Purdue Pharma and Insys paying hundreds of millions to get out from under legal threats.
The consequences of opioid over-prescribing and https://rbsofts.com practices continue to be felt. In Reckitt’s case, it will need to borrow money and tap its cash holdings, which was 1.5 billion pounds ($1.9 billion) at the end of 2018, to settle charges with the U.S. Justice Department and the Federal Trade Commission.
Reckitt had anticipated having to make a settlement, putting a $400 million cost line onto its balance sheet in preparation for a deal with the federal government. Today, it said it will change that provision to $1.5 billion to account for the settlement and any remaining litigation costs.
The company said it wanted to eliminate distraction as it faces organizational change. Reckitt is in the midst of a management transition, with Laxman Narasimhan taking over as CEO from Rakesh Kapoor effective September 1. In addition, it is restructuring its health and hygiene divisions as separate operating units.