McKinsey to pay millions for US opioid crisis role

The US-based consultancy firm McKinsey on Thursday reached settlements worth $573 million (€476 million) for its role in country's opioid epidemic.

A total of 47 US states, the District of Columbia and five US territories are set to receive the cash to help them tackle the crisis.

Washington's attorney general announced a separate deal for $13.5 million and West Virginia announced a $10 million settlement.

Between 1999 and 2018, almost half a million Americans died in overdoses from prescription painkillers and illegal opioids, according to an estimate by the US Centers for Disease Control and Prevention.

Prescription opioid painkillers fueled the crisis alongside illegal drugs such as heroin and illicit fentanyl.

The only US state not to announce a deal with the company is Nevada.

McKinsey worked to counter 'emotional messages'

McKinsey's long worked with Purdue Pharma to boost sales of opioid painkiller Oxycontin even as the extent of the opioid epidemic became clear. Their relationship was revealed in legal documents that were made public as part of Purdue Pharma's efforts to settle claims against it through bankruptcy court.

Some documents showed it was trying to "supercharge" flagging Oxycontin sales in 2013.

The documents revealed that McKinsey also encouraged Purdue sales representatives to focus on doctors who already prescribed high volumes of Oxycontin and to try to move patients to more potent doses of the drug.

In one instance, reported the NYT, documents on the firm Purdue Pharma indicated that McKinsey consultants had worked with it to counter "the emotional messages from mothers with teenagers that overdosed."

The reaction so far

New York Attorney General Letitia James announced: "Under the terms of today's agreement, the company will finally end its illegal conduct, deliver more than half a billion dollars into communities across the nation and will never be able to help perpetrate this type of fraud and deception again."

"Even though no amount of money can bring back the lives lost, I hope our settlement provides funding for programs to help those battling opioid addiction," Arizona Attorney General Mark Brnovich said in a statement Thursday.

Following James' announcement, McKinsey Global's managing partner Kevin Sneader said: "We deeply regret that we did not adequately acknowledge the tragic consequences of the epidemic unfolding in out communities."

"We hope to be part of the solution to the opioid crisis in the US," Sneader added.

Reports in US newspapers stated the global consultancy firm would not admit wrongdoing for its role in advising pharmaceutical giants. The goal of the settlement was to avoid civil lawsuits filed in recent years by state and local governments as the US opioid crises unfolded.

Most of the payments will come within the next two months under the multi-state agreement.

ipj,kmm/dj (AFP, AP, Reuters)