If Purdue Pharma files for bankruptcy to protect itself from thousands of lawsuits claiming the OxyContin maker contributed to the nationwide opioid epidemic, some of its newly created subsidiaries will likely come under scrutiny, according to a STAT news report.
In the last several months, Purdue Pharma launched two subsidiaries that are marketing and developing drugs that previously were a part of Purdue Pharma's portfolio.
The two subsidiaries — Adlon Therapeutics and Imbrium Therapeutics — are run by several former Purdue Pharma executives and classified by the drugmaker as operating subsidiaries.
Adlon recently won FDA approval to market an ADHD pill. Imbrium has a joint development and marketing deal with Japanese drugmaker Eisai for an insomnia pill and is also developing two earlystage drugs for cancer, tinostamustine and etoposide toniribate, which were part of Purdue Pharma's portfolio last June.
Joseph Rice, one of the lead attorneys representing plaintiffs for an opioid lawsuit in Cleveland, told STAT that if Purdue Pharma files for bankruptcy, the first thing that will happen is a "massive hearing to look at the assets, where money has gone, whether there was any fraudulent transfers or inappropriate financial maneuvering."
"There are certain types of corporate structure transfers that may, in fact, shield an asset not involved in the litigation, but will certainly be scrutinized to see if it was an attempt to move assets," Mr. Rice told STAT. "This is going to grow beyond what’s defined today as Purdue Pharma LP. There's going to be more scrutiny into what this company has done, how it’s done it, and how the action has taken place."