Purdue Pharma closes shop and births Knoa Pharma nonprofit to fight opioid crisis
Purdue Pharma shut down on May 1 as part of a $7.4 billion settlement tied to thousands of opioid-related lawsuits, and its bankruptcy plan creates Knoa Pharma, a nonprofit public-benefit corporation overseen by a foundation to manufacture medications (including opioids) with independent monitoring and to distribute excess revenue to state, local and tribal governments for opioid abatement. The Sackler family is barred from selling opioids and has no role in Knoa. Initial payments amount to about $900 million from Purdue and $1.5 billion from the Sacklers, with additional billions due through 2029. Knoa will not lobby or advertise opioids and aims to fund overdose reversal and treatment efforts, among other public health initiatives, funded by surplus revenues.
