47 states reach $573 million opioid settlement with McKinsey, which advised Purdue on OxyContin promotion

"Consulting company McKinsey and Co. has agreed to pay $573 million to resolve investigations into its role promoting prescription opioid sales for drug companies—with the bulk of the settlement money headed to states in the next two months," Andrea Noble reports for Route Fifty. For 15 years, McKinsey worked with Purdue Pharma, the maker of OxyContin, on "how to maximize the drug company’s profits from prescription opioids, according to court documents filed in the case. As part of its marketing efforts, McKinsey told Purdue to target high-volume opioid prescribers, use specific messaging to get physicians to prescribe more OxyContin to more patients, and to work with mail-order pharmacies to circumvent retail pharmacies’ restrictions on high-dose prescriptions."

The bulk of the settlement, $558 million, will be divided among the plaintiffs: 47 states, five territories, and Washington, D.C. Most must be paid to the states within 60 days. States can use the money to cover opioid prevention, treatment and recovery plans, Noble reports. It's unclear how states will distribute that money, and whether rural areas that were especially hard-hit by the epidemic will be targeted.

"The deal represents the first opioid-related settlement for states since Purdue Pharma agreed to an $8.3 billion settlement with the Department of Justice last year," Noble reports. "But Purdue declared bankruptcy and disagreements among state and local governments over how to use opioid settlement funds have hamstrung efforts to distribute awards."