Purdue Pharma

Purdue Pharma L.P.

Company type	Private
Industry	Pharmaceutical
Predecessor	Purdue Frederick Company
Founded	1892
Founder	John Purdue Gray, George Frederick Bingham
Fate	Filed for Chapter 11 bankruptcy protection (2019); rebranded as Knoa Pharma (2023)
Headquarters	Stamford, Connecticut , United States
Area served	United States, Canada, Mexico
Key people	Craig Landau (CEO), Steve Miller (Chairman), Richard Sackler (former president and co-chairman)
Products	OxyContin, MS Contin, Ryzolt, hydromorphone, fentanyl, codeine, hydrocodone
Number of employees	1,700 (2015)

Purdue Pharma L.P., originally known as the Purdue Frederick Company from 1892 until 2019, was a privately owned pharmaceutical firm based in the United States, established by John Purdue Gray. In 1952, ownership transferred to Arthur, Mortimer, and Raymond Sackler, with the Sackler family and their heirs maintaining majority control thereafter.

The company’s core focus was on pain relief drugs such as hydromorphone, fentanyl, codeine, hydrocodone, and notably oxycodone, marketed under the brand name OxyContin. The Sackler family employed assertive promotional tactics, offering physicians paid speaking roles and travel incentives to encourage OxyContin prescriptions. While these methods significantly boosted sales, they also played a role in the escalation of opioid-related overdoses. Between 1999 and 2020, the United States recorded nearly 841,000 overdose fatalities, with opioids implicated in over half a million cases.

Confronted with extensive litigation, Purdue Pharma agreed to pay $634.5 million in 2007 to resolve allegations of downplaying OxyContin’s addiction potential. Subsequently, the company developed abuse-deterrent versions of its opioids but maintained marketing efforts until 2019 amidst continuing legal challenges tied to the opioid crisis.

On September 15, 2019, Purdue filed for Chapter 11 bankruptcy protection. By October 2020, it had consented to an $8.3 billion settlement admitting involvement in promoting opioids without legitimate medical justification; concurrently, the Sackler family committed an additional $225 million and announced plans to wind down operations.

Several state attorneys general opposed this settlement. In March 2021, legislative measures were proposed aiming to block the Sackler family from obtaining legal immunity through bankruptcy; however, this legislation expired in January 2023. Later that year in September, Purdue announced a corporate rebranding under the name Knoa Pharma.

As of August 2023, Purdue remains under Chapter 11 bankruptcy protection while the Department of Justice pursues an appeal before the U.S. Supreme Court concerning the continuation of these proceedings.

The downfall of Purdue Pharma has been portrayed in various media projects including Hulu’s Dopesick (2021), HBO’s The Crime of the Century (2021), and Netflix’s Painkiller (2023).

It is important to note that Purdue Pharma has no affiliation with Purdue University or its College of Pharmacy.

History

Established in 1892 by physicians John Purdue Gray and George Frederick Bingham in New York City, the company began as Purdue Frederick Company producing a tonic that combined sherry and glycerin. In 1952, ownership changed hands to three physician brothers—Arthur, Raymond, and Mortimer Sackler—who moved the company’s base to Yonkers, New York. Initially, each brother held equal ownership shares until Arthur passed away in 1987; his stake was subsequently divided between Raymond and Mortimer. Mortimer died in 2010 and Raymond followed in 2017. Under their stewardship, operations expanded to include offices in New Jersey and Connecticut, with headquarters ultimately settling in Stamford, Connecticut.

The entity was officially incorporated as Purdue Pharma L.P. in 1991 and concentrated on developing pain management therapies, positioning itself as an innovator in analgesic medication development. Notable product introductions included MS Contin in 1984—an extended-release morphine—and OxyContin in 1996, which received FDA approval for a twelve-hour dosing schedule. Starting in 1998, Purdue secured long-term contracts with multiple Johnson & Johnson subsidiaries for supplying raw materials essential to its opioid portfolio. Simultaneously, organizations like the American Pain Society advocated recognizing "pain as the fifth vital sign," influencing nationwide pain treatment protocols adopted by institutions such as the Veterans Health Administration.

By September 2015, Purdue Pharma’s workforce numbered approximately 1,700 employees. That same month saw the acquisition of VM Pharma, granting Purdue global development and commercial rights to an allosteric selective tropomyosin receptor kinase inhibitor program (Phase II candidate VM-902A), a transaction valued at potentially more than US$213 million.

Financial valuation

OxyContin emerged as a highly successful pharmaceutical product, generating $2.8 billion in earnings for Purdue Pharma from 1995 through 2001. By 2016, total revenue had accumulated to $31 billion, increasing further to $35 billion in 2017. All generated income is directed to trusts and entities controlled by the Sackler family. As of 2017, Purdue Pharma remained under the ownership of the Sackler family, recognized as one of the wealthiest American dynasties with an estimated net worth exceeding $13 billion. Various U.S. states contend that the family's wealth surpasses this amount.

Philanthropic activities

Forbes, in 2016, placed the Sackler family among the top 20 richest families in the United States, highlighting their financial support for museums, universities, and cultural organizations worldwide. Nevertheless, Purdue Pharma’s official website makes only limited mention of the Sackler family's proprietorship. Critics emphasize the disparity between their charitable donations and the broader societal consequences linked to OxyContin, raising ethical questions regarding their business achievements.

Corporate structure

The organization comprises several divisions including Purdue Pharma L.P., The Purdue Frederick Company, Purdue Pharmaceutical Products L.P., and Purdue Products L.P. Manufacturing takes place at three locations: Purdue Pharmaceuticals L.P. in Wilson, North Carolina; P.F. Laboratories, Inc. in Totowa, New Jersey; and Rhodes Technologies L.P. in Coventry, Rhode Island. Research and development facilities are situated in Cranbury, New Jersey. Distribution of OxyContin throughout the United States, Canada, and Mexico is managed by P.F. Laboratories.

Founded in 2007 in Rhode Island, Rhodes Pharmaceuticals is a prominent manufacturer of generic opioids whose patents have expired within the U.S. Additional related companies under Sackler family control include Napp Pharmaceuticals (UK) and Mundipharma, both operating extensively within international opioid markets.

New pharmaceutical innovations are pursued through subsidiaries Adlon Therapeutics and Imbrium, which share office space and personnel with the parent company in Stamford.

Leadership

Richard Sackler, son of founder Raymond Sackler, joined Purdue Pharma in 1971. He ascended to president in 1999 and became co-chairman in 2003. He directed research efforts leading to OxyContin’s development and managed its sales and marketing operations.

Craig Landau assumed the role of CEO on June 22, 2017. Having started at Purdue in 1999, he held positions as chief medical officer and vice president of research and development innovation before serving as president and CEO of Purdue Pharma Canada beginning in 2013.

In 2018, eight members of the Sackler family were current or former board directors. Steve Miller was named chairman in July 2018. By early 2019, all Sackler family members had departed from Purdue Pharma’s board, which then consisted of five directors.

Abuse potential

Purdue Pharma manufactures several opioid analgesics such as hydromorphone, oxycodone, fentanyl, codeine, and hydrocodone, with flagship products including MS Contin, OxyContin, and Ryzolt. These medications utilize the Contin controlled-release system introduced in 1972. Both MS Contin and OxyContin are particularly vulnerable to misuse through methods such as crushing, chewing, snorting, or injection, significantly increasing risks of overdose and fatality. Individuals addicted to these drugs frequently engage in "doctor shopping" and exploit "pill mills" to acquire prescriptions; meanwhile, some prescribing physicians apply inadequate controls. Despite these concerns surrounding abuse potential and risks like dependence or tolerance development, these potent painkillers remain critical for treating severe acute pain and cancer-related discomfort.

FDA authorization

Purdue initiated its marketing efforts by obtaining FDA approval for OxyContin in 1995, despite the absence of long-term research or addiction evaluations. Dr. Curtis Wright IV, serving as an FDA medical review officer, authorized OxyContin for treating "moderate to severe pain" after consultations with Purdue representatives, including joint work on the medical review and package insert language. Wright left the FDA a year later to become a consultant for Purdue, receiving a higher salary.

The FDA label approved at the time indicated that OxyContin’s delayed-release formulation "is believed to reduce the abuse liability," wording that later became pivotal in lawsuits and Purdue’s 2007 felony conviction for criminal misbranding. David Kessler, who was FDA commissioner then, subsequently admitted that approving OxyContin was a significant regulatory mistake that fueled the opioid epidemic.

Targeting physicians

OxyContin was promoted heavily under the claim of minimal addiction risk, with Purdue instructing sales representatives to assert that addiction likelihood was "less than one percent." This strategy broadened its application from cancer-related pain to the much larger "non-malignant pain" segment, which accounted for 86% of the opioid market by 1999. Consequently, prescriptions for less severe pain rose dramatically from 670,000 in 1997 to 6.2 million by 2002.

Purdue employed the consulting firm McKinsey & Company to enhance its marketing tactics, concentrating sales efforts on doctors with high prescription rates. The company also incentivized physicians through paid trips to pain-management conferences and enlisted more than 5,000 healthcare providers into Purdue’s national speaker bureau. In 2017, McKinsey suggested offering pharmaceutical distributors rebates tied to overdoses connected to OxyContin sales—a proposal initially met with internal reluctance but ultimately supported by company executives and the Sackler family. This aggressive promotion played a significant role in escalating sales amid an intensifying opioid crisis responsible for over 450,000 fatalities.

In 2021, McKinsey reached a settlement with 47 states and other jurisdictions totaling $537 million and agreed to limitations on collaborating with certain narcotics producers. Kevin Sneader, McKinsey’s global managing partner, expressed optimism that this resolution would contribute positively toward mitigating the opioid crisis in the United States.

Twelve-hour dosing & withdrawal issues

Purdue advertised that a single dose of OxyContin offered pain relief lasting 12 hours—twice as long as generic alternatives—branding it as providing "smooth and sustained pain control all day and all night" on a twice-daily schedule. Nevertheless, many patients reported experiencing relief for only eight hours or less. A 2016 Los Angeles Times investigation revealed that OxyContin’s 12-hour dosing frequently failed to manage pain effectively, resulting in withdrawal symptoms and strong cravings. Neuropharmacologist Theodore J. Cicero explained that this reduced duration of effect caused both the return of pain and acute withdrawal symptoms, prompting patients to increase their dosage and illuminating factors behind addiction development.

Purdue’s knowledge of misuse

Prior to OxyContin’s market introduction, Purdue was aware that the medication did not reliably deliver 12-hour pain relief but continued to promote this claim to sustain revenue since its market control and premium pricing relied on this dosing interval. Instead of recommending smaller doses administered more frequently, physicians were encouraged to raise dosage strength while adhering to the 12-hour schedule, thereby exacerbating addiction risks.

Reports of OxyContin misuse surfaced by 2000. Purdue’s own RADARS monitoring identified OxyContin and hydrocodone as among the most commonly abused opioids. In 2003, the DEA concluded that Purdue’s aggressive marketing significantly contributed to widespread abuse of OxyContin.

A study published in 2012 by the New England Journal of Medicine found that 76% of individuals seeking treatment for heroin addiction had initially abused prescription opioids—primarily OxyContin—directly linking Purdue’s marketing practices to the rise of heroin use in the U.S.

According to a confidential Justice Department document disclosed in 2018 by The New York Times, Purdue was aware that pills were being crushed, snorted, stolen, and that some physicians faced charges related to prescription fraud. Over 100 internal company memos from 1997–1999 mentioned terms such as "street value," "crush," or "snort," indicating awareness within Purdue about extensive drug misuse.

The Ogrosky memorandum

In October 2006, Kirk Ogrosky, then Deputy Chief of the Fraud Division at the US Department of Justice, drafted a confidential memo presenting evidence suggesting that Purdue Pharma executives might have engaged in criminal activities such as wire fraud and money laundering to increase OxyContin sales. This document reveals that the $654 million settlement Purdue agreed to in 2007 was considerably lower than what prosecutors initially sought.

In 2019, Senators Sheldon Whitehouse and Maggie Hassan called on the Justice Department to disclose this memo, which allegedly contains proof that Purdue executives deceived Congress regarding their awareness of OxyContin misuse prior to 2000. The memo advocates for felony indictments against executives Michael Friedman, Paul Goldenheim, and Howard Udell.

OxyContin-related litigation

By the year 2019, more than 1,000 lawsuits had been initiated against Purdue by various state and local authorities, with claims surpassing $2 trillion within the context of the company’s bankruptcy case.

Connecticut

In 2001, Connecticut’s Attorney General Richard Blumenthal pressed Purdue to take stronger measures against OxyContin abuse. Although he recognized Purdue’s intentions, he criticized the company for only implementing minimal actions that were largely superficial. Following Purdue’s announcement to reformulate OxyContin, Blumenthal emphasized the firm’s ethical responsibility to address addiction and misuse throughout this period.

West Virginia

In 2004, the West Virginia Attorney General filed a lawsuit against Purdue seeking reimbursement for what it described as "excessive prescription costs" borne by the state. The suit alleged deceptive marketing practices since patients were consuming more OxyContin than prescribed due to its effects diminishing before the intended 12-hour period. The presiding judge observed that Purdue had the opportunity to conduct tests and update labeling for an eight-hour duration but failed to do so. The dispute was resolved with Purdue agreeing to fund drug abuse prevention initiatives; however, details of the settlement remained confidential.

2007 Guilty Plea

In May 2007, Purdue admitted guilt for providing misleading information to the public regarding the addiction potential of OxyContin and consented to pay a settlement of , marking one of the most substantial pharmaceutical penalties in U.S. history. Company president Michael Friedman, chief legal officer Howard R. Udell, and former chief medical officer Paul D. Goldenheim each pleaded guilty to charges of misbranding and collectively paid fines totaling $34.5 million. Specifically, Friedman was fined $19 million, Udell $8 million, and Goldenheim $7.5 million; all three were also sentenced to complete 400 hours of community service focused on drug treatment programs.

Kentucky

On October 4, 2007, officials in Kentucky filed a lawsuit against Purdue concerning the extensive abuse of OxyContin across the Appalachian region. The case, initiated by then-Attorney General Greg Stumbo alongside Pike County representatives, sought multimillion-dollar compensation. This legal action culminated in a $24 million settlement reached on December 23, 2015.

City of Everett (Washington)

In January 2017, the municipality of Everett, Washington initiated legal proceedings against Purdue Pharma, citing increased municipal expenses related to OxyContin misuse and alleging that Purdue failed to act despite recognizing suspicious sales patterns as outlined in the 2007 settlement agreement. The complaint asserts that Purdue neglected to monitor excessive orders or potential diversion into illegal markets. It further claims that fraudulent clinics exploited homeless populations to obtain OxyContin for illicit resale within Everett.

The lawsuit also draws attention to illegal distribution channels stemming from legitimate pharmacies based in Los Angeles with distribution points in Everett. Purdue is accused of failing to alert the DEA despite being aware of these illicit activities. The city is seeking compensation for costs associated with law enforcement, housing, healthcare services, addiction treatment, criminal justice efforts, parks and recreation maintenance, as well as damages linked to loss of life and reduced community well-being.

Six-State Lawsuit

In May 2018, six states—Florida, Nevada, North Carolina, North Dakota, Tennessee, and Texas—filed lawsuits accusing Purdue Pharma of deceptive marketing practices. These actions joined an existing group of sixteen lawsuits from other states and Puerto Rico. By January 2019, legal actions involving 36 states were underway against the company.

Massachusetts

In 2019, Massachusetts Attorney General Maura Healey filed suit against Purdue Pharma, holding eight members of the Sackler family personally accountable for misleading sales tactics and alleging that they closely controlled a deceptive marketing campaign. Purdue responded by describing the allegations as an unwarranted rush to assign blame.

Purdue’s 2008 introduction of the OxyContin "Savings Card" program provided patients with discounts on their initial five prescriptions. Internal company documents revealed that these discounts boosted patient continuation on OxyContin beyond 90 days by 60%. Court records in Massachusetts likened these savings cards to a "teaser rate on a long-term and very high-stakes mortgage," emphasizing their role in perpetuating opioid dependency.

Oklahoma

In March 2019, Purdue Pharma agreed to settle a lawsuit filed by Oklahoma for $270 million after allegations that its opioid products contributed to thousands of fatalities.

Removal of Sackler Name

The philanthropic efforts of the Sackler family have faced allegations of serving as reputation laundering for wealth generated through opioid sales. In reaction to Purdue Pharma's involvement in the opioid epidemic, photographer Nan Goldin established P.A.I.N., an advocacy group urging museums and cultural organizations to reject donations from the Sackler family. By May 2023, more than 20 institutions, such as the Metropolitan Museum of Art, Yale University, and London's National Gallery, had either removed the Sackler name or ceased accepting their contributions.

Lawsuits and settlement talks in 2019 and 2020

In August 2019, Purdue Pharma together with the Sackler family proposed a $10–12 billion settlement aimed at resolving upwards of 2,000 lawsuits related to opioids. The arrangement involved Purdue filing for Chapter 11 bankruptcy protection, reorganizing as a public benefit trust, and the Sacklers surrendering ownership stakes. Under this plan, addiction treatment medications developed by Purdue would be distributed free of charge to the public, with all future earnings directed to plaintiffs. The Sackler family also committed $3 billion in cash plus $1.5 billion from selling Mundipharma. Despite these concessions, the Sacklers retained billionaire status and faced no criminal charges connected to the opioid crisis. Shortly after agreeing in principle to this settlement, Purdue initiated bankruptcy proceedings in White Plains, New York.

Several states rejected these terms and continued litigation seeking additional recovery funds. They alleged that assets were hidden offshore and pursued personal liability claims against Sackler family members. Accusations included fraudulent transfers intended to protect assets from legal claims. In September 2019, New York's Attorney General accused the Sacklers of moving at least $1 billion from corporate accounts into personal overseas accounts. An audit conducted by AlixPartners in December 2019 found that the Sacklers had extracted $10.7 billion from Purdue following increased legal scrutiny.

By October 2020, Purdue agreed to an $8 billion settlement package consisting of a $2 billion criminal forfeiture, a $3.54 billion criminal penalty, and $2.8 billion in civil damages. Purdue pleaded guilty to three criminal offenses and restructured into a public benefit corporation governed by a trust with a mission prioritizing American public health. The Sackler family was prohibited from participating in this new entity.

Developments in 2021

During 2021, the Sackler family sought a contentious ruling from Judge Robert D. Drain to obtain immunity protecting their assets from opioid-related lawsuits without having to file for personal bankruptcy. This move was opposed by multiple state attorneys general who argued it would obstruct ongoing investigations and accountability measures.

In August 2021, US Representatives Carolyn Maloney and Mark DeSaulnier introduced legislation known as the SACKLER Act aimed at preventing individuals who have not declared bankruptcy from using such protections to evade lawsuits brought by states, municipalities, or federal authorities. Maloney accused the Sacklers of exploiting bankruptcy loopholes to safeguard their wealth and criticized the Department of Justice’s involvement in facilitating the settlement. As of August 2023, this bill has not been enacted into law.

In September 2021, Purdue Pharma received court approval for a $4.5 billion plan to dissolve the company and reorganize it as a public benefit corporation focused on combating the opioid crisis and compensating those harmed. Funding for this plan came from a settlement with the Sackler family, insurance proceeds, and ongoing business operations. This arrangement intended to shield the family from further civil litigation exposure. However, in December 2021, Judge Colleen McMahon invalidated the settlement by ruling that bankruptcy law does not permit releasing the Sacklers from civil liability obligations.

2022–2023 bankruptcy resolution

In March 2022, U.S. Bankruptcy Judge Robert Drain sanctioned a settlement obligating the Sackler family to contribute between $5.5 billion and $6 billion into a trust designated for opioid-related creditors, which encompassed states, individuals affected by addiction, hospitals, and local governments. This agreement provided the Sacklers with protection from personal civil lawsuits but did not extend to criminal charges.

By May 2023, the U.S. Second Circuit Court of Appeals upheld the $6 billion arrangement, resulting in the Sacklers surrendering control of Purdue Pharma, with all generated revenues allocated toward initiatives for opioid addiction prevention and treatment. This decision restored legal safeguards preventing opioid-related claims against the Sacklers, despite their absence of a bankruptcy filing.

Nonetheless, on August 10, 2023, the Supreme Court issued a stay on the settlement pending review of an appeal filed by the U.S. Department of Justice, which contested the authority to grant the Sacklers immunity from civil litigation. Subsequently, on June 27, 2024, in the case Harrington v. Purdue Pharma L.P., the Supreme Court reversed the settlement in a narrow 5-4 ruling, determining that the Bankruptcy Code does not permit extending liability protection to parties like the Sacklers who have not filed for bankruptcy.

See also

• Timeline of the opioid epidemic
• Opioid epidemic in the United States
• Richard Sackler, former Purdue Pharma chairman and president
• List of things named after the Sackler family, including their current status
• The Crime of the Century, documentary film
• Empire of Pain, book authored by Patrick Radden Keefe
• Dopesick, Hulu drama series
• The Pharmacist, Netflix documentary series
• Painkiller, drama series on Netflix