Other NJ News

Pharma Company Being Sued by Newark Gets $40M In State Tax Credits

1cc28a0cce0f7e9f3447_pillsfetanylfake.jpg
Two New Brunswick residents face federal charges of operating an online pharmacy to sell opioids that netted hundreds of thousands of dollars. Credits: Tap Into file photo
1cc28a0cce0f7e9f3447_pillsfetanylfake.jpg

NEWARK, NJ - A pharmaceutical company being sued by Newark for its alleged role in the overprescription of opioids just received a major tax break from the state of New Jersey.

The city in 2017 sued several opioid manufacturers, including Teva Pharmaceuticals USA, for alleged “deceptive” marketing strategies that led to the overprescription of opioids. In late June, Teva Pharmaceuticals received a $40 million tax credit over a 10-year period from the state Economic Development Authority to encourage the company to locate its new headquarters in Parsippany.

The deal is expected to bring 843 new high-paying jobs to New Jersey.

Sign Up for E-News

City spokesman Frank Baraff said the lawsuit is still proceeding. "The city is moving forward full steam ahead with its lawsuit and that has no connection with what the state EDA is doing,” Baraff said.

The case was transferred from Superior Court to federal district court in June, records show. The lawsuit is one of many across the nation that has been consolidated by a judicial panel and handed to Northern District of Ohio Court Judge Dan Aaron Polster, The New York Times reported in March.

Purdue Pharma L.P. and its subsidiaries are also named in the suit and developed OxyContin in the mid-1990s, the lawsuit said. The city alleges that Purdue and other opioid manufacturers helped to "cultivate a narrative" that pain was under-treated and that that it should be a "higher priority" for health care providers.

"Overdoses and addiction have driven crime in the city and first responders are armed with Narcan as a matter of course, at city expense," the lawsuit said, referring to the opioid antidote drug. The city is suing for damages and alleged the opioid manufacturers are in violation of the state's Consumer Fraud Act and accused them of creating a public nuisance. 

Mayor Ras Baraka last year said the has city felt the "substantial financial impact" of the opioid epidemic.

“The impact of prescription opioids on Newark has been catastrophic,” Baraka said in a statement that initially announced the city’s lawsuit. “As the largest city in New Jersey and due to the duty we have to our citizens, we know it is our responsibility to act and protect our residents from this urgent public health crisis.”

Gov. Phil Murphy, meanwhile, praised Teva's move to New Jersey. The company expects to transfer and create 843 jobs and retain 232 existing position with a median annual salary of about $128,000, the governor’s office said in a press release.

“The presence of global life sciences companies like Teva Pharmaceuticals is critical to New Jersey’s ability to strengthen a thriving innovation ecosystem,” Murphy said in a statement. “We are thrilled to expand our welcome to Teva, and its more than 1,000 employees, in the Garden State – the place to be for the world’s most competitive life sciences companies.”

The governor and Baraka are strong allies. The mayor showed support for Murphy’s budget proposal amid legislative pushback last month, and the governor also noted the “importance of Newark” in the state budget at Baraka’s inauguration.

A press aide for Murphy declined to comment when asked if the governor knew of the city’s lawsuit.

The EDA, which approved the tax credits, requires applicants for credits to answer a legal questionnaire, said the agency's spokeswoman, Virginia Pellerin. Teva also has an ongoing obligation to report any concluded legal matters on an annual basis to the EDA, Pellerin added.

“If in the future a pending matter results in a negative outcome, the EDA would review the matter to determine if it impacts the award,” she said.

Teva made the EDA aware of its pending opioid litigation, the EDA spokeswoman said. Unresolved litigation is not a factor in the agency’s decision granting tax credits, per the EDA’s regulations.

Responding to the suit, Teva said it complies with federal and state regulations and is developing non-opioid treatments.

“Teva is committed to the appropriate use of opioid medicines, and we recognize the critical public health issues impacting communities across the U.S. as a result of illegal drug use as well as the misuse and abuse of opioids that are available legally by prescription,” said Teva spokeswoman Elizabeth DeLuca.

The company is globally headquartered in Israel with the U.S. headquarters based in North Wales, Pa. It's still negotiating a lease for office space in Parsippany for its new headquarters in New Jersey, DeLuca said.

Teva will still have a presence in Pennsylvania, DeLuca added. 

The lawsuit now includes as defendants Purdue Pharma L.P.; Purdue Pharma Inc.; Purdue Frederick Company; Ortho-McNeil-Janssen Pharmaceuticals, Inc.; McKesson Corporation; Mallinckrodt LLC; Johnson & Johnson; Janssen Pharmaceutical Inc.; Insys Therapeutics, Inc.; Endo Pharmaceuticals Inc.; Endo Health Solutions Inc.; Cephalon Inc.; Cardinal Health Inc.; and AmerisourceBergen Drug Corporation. 

Essex County has the highest rate of suspected opioid-related deaths in the state so far this year, according to data published by the state Attorney General's Office. Since January, there have been a suspected 202 opioid-related deaths and Naloxone -- more commonly known as the brand name Narcan -- has been used 591 times, the data said. 

Find TAPinto Newark on Facebook and Twitter. Download the TAPinto mobile app for Android or iOS.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Denville

Morristown Happenings: Things to Do in Morristown This Weekend; July 13 - 15

July 13, 2018

MORRISTOWN, NJ - Jump for joy....it's the weekend! Don't let Friday the 13th scare you away, there are lots of fun things to do in and around town this weekend! Have a great weekend everyone!

 

Friday July 13

Spirit Animals Glassblowing Class; Morris County School of Glass; 9am - 11am

Mini Summer Camp: Woodsy Walkers; Great Swamp (Chatham); 10am - 11:30am

Tyke ...

Pharma Company Being Sued by Newark Gets $40M In State Tax Credits

July 10, 2018

NEWARK, NJ - A pharmaceutical company being sued by Newark for its alleged role in the overprescription of opioids just received a major tax break from the state of New Jersey.

The city in 2017 sued several opioid manufacturers, including Teva Pharmaceuticals USA, for alleged “deceptive” marketing strategies that led to the overprescription of opioids. In late ...

Jersey Central Power & Light Names New Vice President of Operations

July 17, 2018

Jersey Central Power & Light (JCP&L), a FirstEnergy Corp. (NYSE: FE) subsidiary, recently named Alex Patton vice president of Operations.  Previously, Patton was director, Operations Services, for Mon Power, a FirstEnergy subsidiary that provides electric service to about 385,000 customers in West Virginia.

In his new position, Patton is responsible for the operation and ...

Upcoming Events

Tue, July 17, 6:00 PM

CASA of Morris and Sussex Counties, Morristown

CASA Information Session

Education Giving Back Law & Justice

Carousel_image_9e10f040586ac3b1c190_denville_rotary_july_2018_flyer

Wed, July 18, 1:00 PM

St. Francis Health Resort, Denville

Denville Emergency Blood Drive - $15 off Jiffy ...

Giving Back Health & Wellness

Wed, July 18, 7:30 PM

Chatham United Methodist Church, Chatham

Masterwork’s Summer Sing Four to Feature Brahms

Arts & Entertainment

To Our Current and Future Representatives

July 17, 2018

To Our Current and Future Representatives - Wherever They May Be:

We can never forget we are a nation of immigrants. 

We cannot fall prey to fear, ignorance and anger when we  have been historically driven by freedom and justice. 

We must have the courage and will to fight hate, bigotry and prejudice. 

We must not wake up to what we hoped was a bad dream and ...

'Servant of Two Masters' exudes foolish fun

‘Servant of Two Masters’ makes for foolish, frivolous fun

By Liz Keill

MADISON, NJ –Carlo Goldoni’s “The Servant of Two Masters,” in a rousing translation and adaptation by Bonnie J. Monte, has the outdoor audience at The Shakespeare Theatre of New Jersey laughing and clapping all the way through.

The yearly production, held at the amphitheatre on the ...

Lucia, Lucia by Adriani Trigiani

Lucia, Lucia by Adriana Trigiani (Ballentine Books, 2003)

 

If a summer romance novel is what you are craving to read as you sit by the pool or beach, Adriana Trigiani's Lucia, Lucia is a perfect choice. Set in 1950 New York City, the novel is about a young woman, Lucia Sartori, who is determined to have a career and be able to support herself, an unusual choice for a girl who was ...

The Anatomy of Escape by Mike Blue

The Anatomy of Escape: An Unconventional Adventure by Mike Blue (Available on Amazon)

 

Imagine that you could just say, “Chuck it,” and walk away from the bonds that keep you tied to what Mike Blue, author of The Anatomy of Escape: An Unconventional Adventure, defines as the restrictive Work-Consume-Die cycle. To most of us, becoming what Blue terms “a ...

Crowdfunding Options for Entrepreneurs and Small Businesses

Source: Many small start-up businesses and tech ventures in search of capital turn to popular online platforms for crowd fundraising of financial resources to get their concept off the ground and launched into market. Indiegogo, Kickstarter, and GoFundMe, to name a few, offer solutions in generating cash to fund new ideas. How do you get people to contribute to your cause?  Sam Burlum ...