Purdue Pharma and OxyContin

The published letter detail:

“Recently, we examined our current files to determine the incidence of narcotic addiction in 39,946 hospitalized medical patients who were monitored consecutively. Although there were 11,882 patients who received at least one narcotic preparation, there were only four cases of reasonably well documented addiction in patients who had no history of addiction. The addiction was considered major in only one instance. The drugs implicated were meperidine in two patients, Percodan in one, and hydromorphone in one. We conclude that despite widespread use of narcotic drugs in hospitals, the development of addiction is rare in medical patients with no history of addiction.”

The letter says, we used Opioids in a “hospital” setting and there was no evidence of addiction by patients except for one. From 1980 onward till 2015 the letter was cited 5 to 28 (1996) times per year affirming Opioids do not cause addition. The median number of citations of a letter in the NEJM is 11 times. There is nothing to indicate this letter had an impact until about 1997 when the numbers and rates of death due to Opioids doubled (see charts).

The bibliometric analysis of the citations and subsequent chart of the findings related to the Jick and Porter letter can be found in a subsequent 2017 letter to the NEJM entitled “A 1980 Letter on the Risk of Opioid Addiction,” dated June 1, 2017 authored by Doctors Leung, Macdonald, Dhalla, and Juurlink. This appearing and disappearing Supplemental Appendix which has the Jick and Porter Letter (cited) is a part of this article.

On May 1, 2026, Purdue Pharma permanently ceased operations. Knoa Pharma, a new and different company, will distribute medicines formerly distributed by Purdue Pharma. Dean Baker will add to this story.

Purdue Pharma Bites the Dust: Can We Learn Anything? Dean Baker

The money paid to the families of victims cannot compensate for the deaths of loved ones, but the other part of the story is that no one is asking how to make sure this sort of disaster does not happen again. And unlike the example I gave of an exploding oil refinery, we are talking about the death of hundreds of thousands, not hundreds.

AB: Dean states the incentive is large enough to cause companies to overextend due to government subsidies, For example:

The key issue being, “the incentives the government gave to Purdue Pharma and the other opioid manufacturers. It gave them patent monopolies allowing them to markup the price of their drugs by several thousand percent. Selling them at prices that were twenty or thirty times what they would sell for in a free market.

To be clear, companies always have incentive to sell their products widely. That’s the point of advertising. But they won’t go to the same length to sell a plastic cup or shovel, where they expect a profit of a dollar or two, as they will in selling a prescription on a patent-protected drug, where the profits can be hundreds or even thousands of dollars.

AB: Who owned Purdue Pharma? The company was owned by the families of the two brothers, Mortimer and Raymond Sackler. While having legal issues with OxyContin and the epidemic, the family withdrew over $10 billion from Purdue Pharma between 2008 and 2018. The withdrawal (nervy) led to significant personal wealth while the company faced lawsuits. Dean continues his piece discussing patent drugs and the high prices resulting from them

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(Dean) Patent monopolies are also the reason for high drug prices. Drugs are almost always cheap to manufacture and distribute; the reason they are expensive is the monopolies the government gives the drug companies.

This is the whole story of people struggling to raise the thousands or tens of thousands needed to pay for drugs to treat cancer or other serious illnesses. If these drugs were sold in a free market, paying twenty or thirty dollars for a prescription would not be a big deal, except for low-income people. And the government could afford to pick up the tab for them.

And patent monopolies are a big part of the story in redistributing income upward. While this is true in many areas, it is very striking in the case of pharmaceuticals. We will pay around $750 billion this year for drugs that would cost in the range of $150 billion in a free market. The savings of $600 billion comes to almost $5,000 per household.

It is more than a bit bizarre that we have a large contingent of progressives focused on ways to tax back the wealth of the very rich, but who have no interest in restructuring the system in ways that don’t make them so rich in the first place. Just as a refinery explosion would be expected to lead to a renewed focus on industry safety, we might have expected the opioid crisis to lead to new thinking on the way we finance the development of drugs. But that has not been the case.

AB: After almost (or maybe it is) a couple of decades, we are still talking about the dangers of pharmaceuticals such as OxyContin. There still is a lack of enforcement and monitoring. Although the Sacklers had to give money back.

Some references: