Collegium Pharma Reaches Opioid Agreement With US Government

Specialty pharmaceutical company College Pharma achieved a $ 2.75 million agreement with the US government to resolve 27 pending lawsuits related to the opioid crisis and the company’s sale of Xtampza.

The Massachusetts-based company said the deal would result in a “biased dismissal” of all pending lawsuits against them. In addition, the settlement releases Collegium from liability in connection with the legal disputes. The company determined that its settlement agreement did not include an admission of liability or wrongdoing by Collegium Pharmaceutical.

“We are excited to be able to resolve these cases and move forward. We remain committed to our mission to be the leader in responsible pain management, “said Shirley Kuhlmann, executive vice president and general counsel of the Collegium, in a statement.

The settlement with the federal government comes weeks after the company reaches an agreement with the Massachusetts state government on opioid-related claims. Collegium agreed to pay the state $ 185,000 and also agreed to cease marketing its opioids by “conducting personal information on prescribers and speaking programs in Massachusetts with health professionals to investigate allegations of unfair and fraudulent practices” .

Massachusetts Attorney General Maura Healey said the college’s sales force “misled doctors“About the potential risks of opioid drugs that the company has marketed. In a statement, Healey said those sales reps told doctors the drugs were safe and also a “responsible alternative” to other opioids, even though Collegium’s Xtampza contains the same active ingredient (oxycodone) as other drugs, such as Purdue Pharma’s Oxycontin.

Like many other opioid companies involved in opioid litigation, Collegium has been charged with aggressive marketing practices related to Xtampza. According to an investigation by the Massachusetts Attorney General, the company’s sales reps have arranged more than 5,000 face-to-face meetings with doctors and other health professionals in the Bay State since 2016. During these meetings, the Collegium sales people are believed to have misled these healthcare professionals about the risks and the appropriate use of Xtampza.

In addition, Collegium has also been accused of using sponsored “loudspeaker programs” touting the benefits of Xtampza over other opioid drugs. That program ended in 2018, the attorney general said.

In November, Collegium announced that net product sales of Xtampza ER, Xtampza’s extended-release formulation, reached $ 30 million in the third quarter of 2021. That was a decrease from last year when Xtampza ER grossed $ 32.1 million in the same quarter.

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