Purdue Pharma considering bankruptcy, report says

Purdue Pharma is considering filing for bankruptcy to protect the company from significant liabilities that may arise from thousands of lawsuits claiming the OxyContin maker contributed to the nationwide opioid epidemic, Reuters reports.

Filing for Chapter 11 protection would halt the lawsuits, allowing the drugmaker to negotiate legal claims under the supervision of a U.S. bankruptcy judge.

Purdue Pharma, and its wealthy owners, the Sackler family, face claims that the company misled U.S. physicians and patients to push the addictive drugs and fuel the opioid crisis. Purdue Pharma denies the allegations.

"As a privately held company, it has been Purdue Pharma's longstanding policy not to comment on our financial or legal strategy," Purdue told Reuters. "We are, however, committed to ensuring that our business remains strong and sustainable. We have ample liquidity and remain committed to meeting our obligations to the patients who benefit from our medicines, our suppliers and other business partners."

Purdue tapped law firm Davis Polk & Wardwell for restructuring advice last year.

Read the full report here.

 

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