OxyContin's Deception Costs Firm $634M

Current, Former Execs Plead Guilty To Misleading Public About Drug's Risk Of Addiction

(CBS/AP)  Two days after agreeing to pay states nearly $20 million for falsely marketing OxyContin, the drug's maker, Perdue Pharma, and three current and former executives plead guilty to federal charges.

The Stamford, Conn.-based maker of the powerful painkiller, and three of its current and former executives, pleaded guilty Thursday to misleading the public about OxyContin's risk of addiction, a federal prosecutor and the company said.

Purdue Pharma L.P., its president, top lawyer and former chief medical officer will pay $634.5 million in fines for claiming the drug was less addictive and less subject to abuse than other pain medications, U.S. Attorney John Brownlee said in a news release.

The plea agreement comes after the company agreed to pay $19.5 million to 26 states and the District of Columbia to settle complaints that it encouraged physicians to overprescribe OxyContin.

For six million Americans a year, OxyContin is the prescription painkiller of choice, CBS News correspondent Bob Orr reports. But it's also a highly addictive and deadly pill — the favorite narcotic of drug abusers.

More than 400 deaths have been blamed on the drug, adds Orr. Now Purdue Pharma admits it lied to doctors and patients about the risks...to boost sales.

"With its OxyContin, Purdue unleashed a highly abusable, addictive, and potentially dangerous drug on an unsuspecting and unknowing public," Brownlee said. "For these misrepresentations and crimes, Purdue and its executives have been brought to justice."

Purdue learned from focus groups with physicians in 1995 that they were worried about the abuse potential of OxyContin. The company then gave false information to its sales representatives that the drug had less potential for addiction and abuse than other painkillers, the U.S. attorney said.

Even though the company was warned by health professionals, the media and members of its own sales force, "Perdue continued to push a fraudulent marketing campaign that promoted OxyContin as less addictive, less subject to abuse and less likely to cause withdrawal when they knew in fact that that was not true," Brownlee told CBS News correspondent Barry Bagnato.

"People who are suffering from chronic pain want a drug that can relieve them of that pain and yet the same time is safe not only for themselves but for society," Brownlee said. "And Perdue promised that."

"Doctors are often approached right in their offices by pharmaceutical company sales reps dispensing information about one medication or another," said CBS News medical correspondent Dr. Jon LaPook. "This case is a reminder to doctors not to believe everything they hear — and to drug companies that the FDA will hold them accountable for fraudulent practices."

Purdue Pharma said it accepted responsibility for its employees' actions.

"During the past six years, we have implemented changes to our internal training, compliance and monitoring systems that seek to assure that similar events do not occur again," the company said in a news release.

OxyContin, a trade name for oxycodone, is designed to have a time-released effect on a patient's pain, but people who abuse the medication will crush the pills and then swallow, snort or inject the drug so that its pain-killing properties — meant to be spread out over 12 hours — are absorbed all at once.

From 1996 to 2001, the number of oxycodone-related deaths nationwide increased 400 percent while the annual number of OxyContin prescriptions increased nearly 20-fold, according to a report by the U.S. Drug Enforcement Administration. In 2002, the DEA said the drug caused 146 deaths and contributed to another 318.

"I think these people are drug pushers, just like street drug pushers," said Joe Califano, the head of the National Center on Addiction and Substance Abuse and author of "High Society: How Substance Abuse Ravages America and What to Do About It." " ... It is outrageous that these people pushed this drug, addictive as they knew it was, onto the market and in effect damaged millions of innocent people."

The drug became a major problem in Virginia — particularly southwest Virginia and other areas of the Appalachian region, where it got the nickname "hillbilly heroin."

In western Virginia, 228 people died from overdoses of oxycodone from 1996 to 2005, Brownlee said.

Brownlee said the guilty pleas were entered Thursday morning in U.S. District Court in Abingdon, about 135 miles south of Roanoke. In addition to Purdue's plea, company chief executive officer Michael Friedman, general counsel Howard Udell and chief medical officer Paul Goldenheim each pleaded guilty to misdemeanor counts of misbranding the drug. They individually will pay fines totaling $34.5 million.

The fines will be distributed to state and federal law enforcement agencies, the federal government, federal and state Medicaid programs, a Virginia prescription monitoring program and individuals who had sued the company. At least $5 million will go toward a six-year company program to monitor compliance with the agreement.

[firststate]

Purdue Pharma was less than forthright and they've certainly made money on OxyContin. However, doctors and patients have some responsibility, too since resources have been available to both doctors and patients about the addictive nature of oxycodone. The information about Oxycodone warns that users may become dependent or addicted. If the drug is addictive it's addictive no matter under what name it's sold.

OxyContin's time-release formulation is supposed to make it less likely to be abused, but determined abusers read the patient information that warns what shouldn't be done because they can cause the medication can be released quickly and intentionally do those things. Effective pain relief requires the use of narcotics even though some people will abuse them. No physician had any excuse for being unaware that it was addictive. Specialists in pain management are the only doctors who should prescribe narcotics to manage chronic pain because they are trained to detect signs of abuse. Most require a narcotics contract with patients who receive them and strictly enforce its conditions. Some do random drug tests to check for blood levels of the narcotics.

Most people wouldn't go to a urologist for brain surgery. Being treated for chronic pain by a family doctor is the same type thing.

[juwboy]

Why is this news?

Oxycodone (the generic name for Oxycontin) was known to be addictive about 50 years ago when it was sold as Percodan.

[drinuk]

It is almost commonplace that we continually learn of one or another Big Pharma product that is causing serious concern. Not withstanding that we are supposed to be and pay for the protection of the FDA, when are we going to see a honest and genuine politician come out against the conspiracy and fraud between Drug Companies and government. Are they ALL taking "Graft" from Big Pharma ? it would seem so. It is also an irrefutable fact that these evil people have enormous numbers of the medical profession firmly under their control and who's remit to us the people is clearly written in their oath. FIRST DO NO HARM ! I would warn each and everyone of them that, you are being watched and that there will be a day of reckoning. "To Thine Own Self Be True" or be prepared to suffer the consequences.

[mkclmns]

My wife was a Chronic pain sufferer and her Dr. had her on 800 mg of Oxycontin daily. As a result she is no longer with us. If your on this *** I would highly suggest you get another opinion it kills. Once your body builds up the intolerance the Dr. has no recourse but to increase your dosage, the result is death!

[jilly2007]

I cannot even believe that there are people defending this drug.. no this killer that is exactly what this drug is and what it is doing to people. I know more than one person on this drug and more than one person is a family member. I am sickend by the fact that this drug has been out for how many years and Dr's are still prescribing this drug to people who are do not really need it I believe the only ones to have it are cancer patents or of the like. I agree ursula kudo's to u

[johnshaft4]

Why are the "do gooders" stopping here?
I'll bet you $1 that the booze and cig companies have killed many more of us.

[hissteps4u]

This is not even a slap on the wrist they make that in a single day no doubt.

Drug Makers are the scurge of Mankind....

[drbehavior-2009]

I find it so difficult to believe when supposedly intelligent and mature adults take out their frustrations on Katie Couric as if she and she alone decided both the format and the content of each and every one of her broadcasts. Obviously, the topic of fraudulent misrepresentation of Oxycontin by upper level management is news of an exceedingly important nature. Whether or not we concur with the notion that the pharmaceutical company ought to be fined or jailed in addition to incarceration is a topic in and of itself. This news report dealt with the crime and the punishment, I agree; however, the important part of the reporting concerned itself with the excessively addictive properties of the drug. No one editorialized - no - not even Ms. Couric. Again, the focus was on the essential nature of the drug and the harm it can and does cause. For those that find their daily prescribed dose delicious and life-saving, that's fine. Just remember, however, that their are millions of others out there that need to know that the recreational drug that they're 'playing' with is a killer.

[cbslogin12]

I understand the need for pain medications for those who are in dire need. It is your right to weight the risks in taking any medication. But the makers of OxyContin did not provide the truth about the risks associated with this drug. They lied to make money.

Purdue Pharma encouraged doctors to prescribe this drug in cases where a lesser pain medication would have been appropriate to increase profits. No one was told of the risks involved. Many of these so called drug abusers so many of you are so quick to blame took this medication because they were prescribed this medication by their doctors. They had no idea of the dangers involved because they were not told they truth.

Those who take drugs to get a high, choose to smoke, drink to access and so on have to take responsibility for their actions. However there is a huge difference between them and those who took medications prescribed by a doctor from a company that LIES about its product.

We must hold drug companies liable. They must be made to disclose the truth so that informed decisions can be made.

Knowingly causing harm to others just to make money is not only criminal it is evil.

[osiod9]

I can't believe these b******s are getting off so easy. $34.5 million in fines BETWEEN them? I bet they get that much in bonuses every year. Where's the jail time? What about those HUNDREDS of people who DIED? With six million addicts, Purdue is raking in billions and Brownlee is patting himself on the back for basically slapping them all on the wrist?

That's right I said six million addicts. Oxycontin is so addicting that if you take it for as little as a few weeks, you'll be sicker than you ever imagined if you stop taking it, and I mean taking it as prescribed, not snorting it or running it up. Purdue created abusers and they knew they were doing it, and to think they could just buy their way out of it makes me want to hurl.

I bet most people who read this knows someone whose life was destroyed by this evil drug. It isn't pretty is it? Oxycontin has no more medicinal value than Heroin and should be just as illegal...oh wait...our government is more concerned with keeping marijuana out of our hands so we don't kill ourselves with it. Funny how if you get caught selling a bag of weed, you go to prison. Sell drugs that kill hundreds of people and get a fine. Something wrong with that picture in my opinion.

[merdercycler]

I read "ilovemydogs" post and it hit home with me to a tee. I too have those very same symptoms as well as more.I too feel the story was one sided and it jepordizes the treatment of those of us who not by choice, but out of need must use this treatment.I too wish my situation did not require the use of this medication. It is not for my recreational use.Yes the drug companies make a huge profit, but at what cost would I pay to be somewhat be able to enjoy a little of what I used to? As much as the equally profit hungry insurance companies will provide off of my premiums!Don't make doctors afraid to improve the limited quality of life for those of us who really need it............

[ilovmydogs]

Due to a spinal cord injury I have used oxycontin (as prescribed) for the past 8 yrs & it is the only med that helps me with the chronic back pain and burning feet. Thank goodness I have insurance to help cover the cost because it is very expensive. If the drug company has to pay all this money out because some have chosen to abuse the drug then why not reimburse those of us who actually need it and not abuse it.

[ursula31]

I feel this controlled substance has not been controled at all. I also feel 6 million should pay for a carefully designed rehab center for those folks are severe users and addicts. I've been around the block several times with a son
who was prescibed OC for a back injury. Jail,
illequiped, hospitals, expensive reahabs, crime and violence. It was prescribed and then taken away. It has been a roller coaster ride to say the least. It has wrecked havoc on our family.
I feel it should only be prescibed to fatal situations and for severe pain management

[ibdallas]

Please do not take away the only pain medication I have been able to take in the last several years. Katie, I have supported you for years, but this one sided story, on a medication that makes life possible for me, has me really up set with you. Instead of interviewing the 10 people in the world that have died, how about the millions that it has helped.

[taylpatr]

What I want to know is, what happened to the Rush Limbaugh case? He was known to have had at least 10,000 hits of oxy pass through his hands within a years time. Why isn't he doing time? These pills have killed two of my friends. This drug company is a blatant example of drug pushing at it's most destructive. Why doesn't our government target them in their "Drug War?" Because they are in the drug companies pocket, that's why. Enjoy your profits while you can, because one day the blood on your hands will be your own.

[ilovmydogs]

Due to a spinal cord injury I have used oxycontin (as prescribed) for the past 8 yrs & it is the only med that helps me with the chronic back pain and burning feet. Thank goodness I have insurance to help cover the cost because it is very expensive. If the drug company has to pay all this money out because some have chosen to abuse the drug then why not reimburse those of us who actually need it and not abuse it.

[ladyelec]

Toolmangler, my husband took it for a short time after hip surgery, and when he tried to cut back, he had sever muscle cramps and could not go to sleep. He like to never got off them. It was his will, that was all that really helped. It was scary to watch. Anyone else would have said I have to sleep, or I can't stand the pain and would have kept taking them. Lets face it not too many would have had his determination. I don't have it (the will) when it comes to needing to work out or what ever, and I can sleep without cramps if I don't do it.

[vtarrant]

To Tedibear: Your poor husband was definately on something else other than just Oxycontin, or he may have been overly sensative. In any case, you should have reported the symptoms to your doctor!!

[vtarrant]

I'm sure MANY others voiced their opinions regarding your ridiculously poorly researched story about oxycontin. Just because a few idiots decide to abuse a drug by violating the proper usage does not mean that those of us (myself included) who suffer REAL pain, rather than attempting to "take a trip", might no longer be able to obtain (under a doctors care) a drug which really helps our chronic suffering! I'm appalled that the network of Edward R. Murrow would stoop to such sensationalism just to possibly increase ratings. My wife and I genuinely like Couric, but I'm so "perturbed" that I could easily switch real soon. I used to have to take Vicodin, which is REALLY bad stuff. I can now get relief without ANY sense of addiction (I'm addicted to tobacco--I know what addiction is).

Quite frankly, this smells really bad of a conservative (I'm a Republican) attempt to abolish any form of drug related relief from constant pain. Again,I'm APPALLED!!!

[alphaa10-2009]

cbslogin12 said, "Every time I tried to post my comment the publish button was temporarily disabled and I thought I had to submit my post again.
---
Your Publish button signals your post was sent when it "fades". After the fade, your only recourse is to wait until your post appears at the next screen refresh (which you can do from your own browser, if you wish).

This blog is very slow, but that is due in part to security processing which occurs before the text is cleared.

Posters beware-- this CBS blog will eat your posts. Make sure you right click in the message area, and copy your text, then paste it into Notepad or equivalent BEFORE you publish. This tendency to eat posts is happening more and more frequently.