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OxyContin Maker Agrees to End Off-Label Promotion

Company Pays $19 Million in Settlement with 26 States

May 9, 2007

OxyContin • West Virginia AG Challenges Anti-Lawsuit Group • OxyContin Maker Agrees To $634 Million Settlement • OxyContin to End Off-Label Promotion

Attorneys General in 26 states have reached a settlement with Purdue Pharma, making of the narcotic painkiller OxyContin.

The multi-state investigation found Pharma engaged in extensive off-label marketing of the drug, and failed to disclose the abuse and addiction risks associated with it.

A consent judgment orders Purdue Pharma to pay a total of $19,500,000 to the 26 participating states. The company has also agreed to a number of restrictions regarding its marketing of the drug.

States participating in the settlement include: Arizona, Arkansas, California, Connecticut, Idaho, Illinois, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Montana, Nebraska, Nevada, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington, Wisconsin and the District of Columbia.

"We are pleased that this settlement will give us the opportunity to fund crucial prevention programs," said Massachusetts Attorney General Martha Coakley.

"We look forward to working with communities, many of whom have seen firsthand the devastating affects of OxyContin abuse, to create innovative programs that make youth aware of the devastating addictive risks associated with the long-term use of OxyContin."

“Kentucky has suffered greatly from abuse of Oxycontin”, said Kentucky Attorney General Greg Stumbo. “Today we have a new tool to clamp down on illegitimate use of this drug. The court order outlaws dangerous practices at their source by controlling overprescribing and curbing aggressive sales by the manufacturer.”

Among the restrictions and requirements contained in the settlements are provisions that Purdue must:

• Market and promote OxyContin in a manner consistent with its package insert and not in a manner that minimizes the approved uses for the drug;

• Not market or promote OxyContin for off-label purposes-those beyond the approved indications and uses of the drug-specifically, OxyContin is approved only for moderate to serious pain expected to last for more than a few days;

• Have any recipient of funds or other remuneration for grants publicly disclose the existence of that remuneration;

• Not sponsor or fund any educational events where Purdue Pharma has knowledge at the time the decision for sponsorship or funding is made that a speaker will recommend the off-label use of OxyContin;

• Not exclusively base Purdue Pharma sales representatives’ bonuses solely on the volume of OxyContin prescribed; and

• Take into account in the evaluation of sales representatives' performance whether they adequately educate prescribers about OxyContin and its potential for abuse and diversion.

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