Misbranding Oxycontin in Oregon Costs Pharmaceutical Companies Millions

Purdue admits to knowingly and fraudulently misbranding Oxycontin as being less addictive than other pain medications.

Oxycontin products from Purdue are addictive, they do lead to abuse and diversion, they are likely to cause tolerance and withdrawal problems, and death.

(SALEM, Ore.) - An agreement has been reached between the state of Oregon and two pharmaceutical companies over their fraudulent misbranding of the drug OxyContin. This drug has caused thousands of deaths according to some sources, hundreds according to others, yet it is still widely prescribed by doctors. It is another example of the FDA initially allowing a drug to be released under the guise of false information.

Oregon's Attorney General Hardy Myers says they reached a settlement with the Purdue Frederick Company, Inc., a New York Corporation with the product name, "Purdue Frederick,” and Purdue Pharma L.P., a Delaware limited partnership that uses the name “Purdue.”

Myers says Purdue engaged in the manufacture, marketing and distribution of OxyContin, an extended-release form of the painkiller Oxycodone.

OxyContin is now a valuable commodity on the street among drug dealers. The DEA says the most popular way of moving it is "doctor shopping," where individuals, who may or may not have legitimate illnesses visit many doctors to acquire large amounts of drugs like OxyContin. Other problems include pharmacy diversion and improper prescribing practices by physicians.

The Website oxyabusekills.com cites a 2002 report from the DEA stating that OxyContin might have played a role in 464 drug overdose deaths in a two-year period.

The group says the sentencing of these pharmaceutical companies and executives failed to save a number of people. They say there are over 500 names on their "Victims" page and the latest name was recorded, "on the day the Purdue Criminals are sentenced in Court."

This ends a four-year investigation conducted by the U.S. Attorney for the Western District of Virginia, in conjunction with other state and federal law enforcement agencies.

The Purdue Frederick Company pled guilty to charges of knowingly and fraudulently misbranding Oxycontin as being less addictive, less subject to abuse and diversion, and less likely to cause tolerance and withdrawal problems, than other pain medications.

Three executives of the company also pled guilty in the same federal criminal proceeding to federal misdemeanor violations for the same conduct.

Purdue entered into civil agreements with the federal government and the State Medicaid Fraud Control Units agreeing to pay a total of $634.5 million. $160 million of that will be used to compensate the federal and state health care programs for damages caused by the misbranding of Oxycontin from 1995-2005.

Under the terms of DOJ’s settlement with Purdue, the State of Oregon recovered $1.49 million in restitution and penalties for the Oregon Medicaid Program.

The settlement further requires Purdue to enter into a Corporate Integrity Agreement to monitor the company’s operations and endure future compliance with all governing laws and regulations.

Oregon’s Medicaid Program is administered through the Department of Human Services, Division of Medicaid Assistance Programs as the Oregon Health Plan (OHP). Over 338,000 people receive basic health care coverage each month through OHP based on income eligibility criteria. By law, the Oregon Medicaid Program must reimburse 60 percent of Medicaid settlement recoveries to the federal government.