Thursday, July 12, 2018

$40M tax break to drugmaker accused of pushing opioids

NJ Gives $40M Tax Break To Pharma Co. Accused Of Pushing Opioids
Eric Kiefer reports for the Bloomfield Patch

An international pharmaceutical company will receive a $40 million, performance-based tax break to move its U.S. headquarters from Pennsylvania to New Jersey, despite multiple lawsuits accusing it of contributing to the national opioid crisis.

Last week, Gov. Phil Murphy announced that Teva Pharmaceuticals USA, the North American arm of Teva Pharmaceuticals Industries Ltd., will relocate its U.S. headquarters from North Wales, Pennsylvania to Parsippany-Troy Hills, bringing "more than 1,000 high-wage jobs to New Jersey."

The governor's press statement about the relocation didn't mention that Teva USA was named alongside several other drug manufacturers in a 2017 lawsuit launched by the City of Newark, which accused the company – and 10 of its peers – of "hiding behind the scene as the connection/supplier to local drug dealers."

The New Jersey Economic Development Authority (EDA) approved $39.9 million in performance-based tax credits for the Teva relocation through the Grow New Jersey (Grow NJ) program at its June 2018 board meeting.
It's estimated that the project will have a net benefit to the state of $247.4 million over a 20-year period, the EDA stated. (Read more about the company's relocation plans and their tax break below)
"The presence of global life sciences companies like Teva Pharmaceuticals is critical to New Jersey's ability to strengthen a thriving innovation ecosystem," Gov. Phil Murphy said. "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."
Spokespeople for Murphy declined to comment for this article, deferring to the EDA's statement on the pending litigation (read more below).
Teva Pharmaceuticals has nearly 550 generic medicines available. Currently, one in seven generic prescriptions dispensed in the U.S. is filled with a Teva generic product, according to the company's website.
'DECEPTIVELY MARKETING OPIOIDS': A CITY'S LAWSUIT
In October 2017, officials with the City of Newark announced that the municipality launched a lawsuit against 11 opioid manufacturers, including Teva USA.
Named alongside Teva were other corporations including Purdue Pharma L.P., Purdue Pharma Inc., the Purdue Frederick Company; Cephalon Inc.; Janssen Pharmaceuticals Inc.; Ortho-McNeil-Janssen Pharmaceuticals Inc.; Janssen Pharmaceutical Inc.; Endo Health Solutions Inc., and Endo Pharmaceuticals Inc.

Subscribe here to view all our YouTube videos

Repost this article