The Situation
Drug overdoses represent the largest cause of accidental deaths in the United States; they recently surpassed car accidents. Many believe the rise in drug overdoses has been driven by the use of prescription opioids. According to the National Institute on Drug Abuse, in 2016 the number of drug overdoses were 64,000, up 23% Y/Y and more than twice the 23,518 reported in 2002. In 2002 opioid prescription drug overdoses were 32% of total drug overdoses. That figure increased to 43% in 2015, and 59% in 2016. Opioid prescription overdoses continue to hit record highs even after the government makes concerted efforts to reduce them.
The rise in prescription opioids has also drawn the attention of lawmakers. Opioid prescriptions were 219 million in 2011; this was nearly triple the number reported 20 years earlier despite the fact the level of pain felt by Americans may not have increased proportionately. Others believe opioid manufacturers might have aggressively marketed these drugs to doctors without properly describing the risks. Earlier this month five doctors were charged with writing fentanyl prescriptions in exchange for kickbacks from Insys. One admitted to taking kickbacks and was sentenced to four years in prison.
What about Purdue, the greatest offender.
Are you not interested because they are not public?
Joe Smoe,
Agreed. Purdue is one of the biggest offenders. Since it is not publicly-traded the Shock Exchange rarely writes about it. He usually only covers publicly-traded companies.
Jo Smoe,
The Shock Exchange is interested in Purdue. He rarely writes about it since it’s not publicly-traded. Purdue is likely the king of opioids and trumps Endo, Mallinckrodt, Allergan, J&J, Teva, Depomed, and Insys.