Purdue Pharma Bankruptcy
In May 2023, the U.S. Court of Appeals for the Second Circuit ruled in favor of Purdue Pharma’s Chapter 11 Plan of Reorganization (the “Plan”), affirming the Bankruptcy Court’s September 2021 confirmation order and holding that the Plan is appropriate under the law. The case was heard before the Supreme Court of the United States in December 2023.
The Company’s Plan will deliver billions of dollars of value for victim compensation, opioid crisis abatement, and overdose rescue medicines. Upon emergence, Purdue Pharma will cease to exist and substantially all of Purdue’s assets will be transferred to a new company called Knoa Pharma, with a uniquely public-minded mission.
We continue to operate fully, honoring our existing relationships and meeting our obligations to our partners, customers, and consumers.
About Knoa Pharma
- Knoa Pharma will be governed by new independent board members selected by the stakeholders. It will operate in a responsible and sustainable manner taking into account long-term public health interests relating to the opioid crisis.
- Knoa Pharma will be subject to operating covenants to ensure that all of its products, including all opioid products, are provided in a safe manner that reduces the risk of diversion. It will be held to the highest standards of conduct and required to comply with a detailed injunction restricting the promotion of opioid products. An independent Monitor will continue to ensure that the new company complies with the court-ordered injunction, and will report regularly on compliance.
- Knoa Pharma will develop and distribute opioid addiction treatment and overdose reversal medicines at no profit. It will also continue serving patients and consumers who rely on Purdue’s existing medicines; and it will utilize its scientific capabilities to bring to market other potentially life-saving medicines in its pipeline.
- Knoa Pharma will have a diverse portfolio and pipeline of medicines in development that address important medical needs in multiple therapeutic areas such as oncology and central nervous system disorders.
- Knoa Pharma will be ultimately owned by a trust being established to fund opioid crisis abatement efforts in satisfaction of the claims brought by states and localities, as well as an opioid abatement trust established for the benefit of Native American Tribes (the “Tribe Trust”). Proceeds will also flow to opioid abatement trusts established for the benefit of other creditors such as hospitals, schools, and children with a history of Neonatal Abstinence Syndrome and their guardians; and to a fund for the benefit of personal injury victims.
- Knoa Pharma will commence doing business once the Purdue Pharma plan of reorganization becomes effective.
- The Sackler families will have no involvement in Knoa Pharma.