Documents released last week in a federal bankruptcy court in New York show that the adviser was McKinsey & Company, the world’s most prestigious consulting firm. The 160 pages include emails and slides revealing new details about McKinsey’s advice to the Sackler family, Purdue’s billionaire owners, and the firm’s now notorious plan to “turbocharge” OxyContin sales at a time when opioid abuse had already killed hundreds of thousands of Americans.
In a 2017 presentation, according to the records, which were filed in court on behalf of multiple state attorneys general, McKinsey laid out several options to shore up sales. One was to give Purdue’s distributors a rebate for every OxyContin overdose attributable to pills they sold.
The presentation estimated how many customers of companies including CVS and Anthem might overdose. It projected that in 2019, for example, 2,484 CVS customers would either have an overdose or develop an opioid use disorder. A rebate of $14,810 per “event” meant that Purdue would pay CVS $36.8 million that year. (...)
On Tuesday, Purdue pleaded guilty to criminal charges, including defrauding federal health agencies and paying illegal kickbacks to doctors. The company also faces roughly $8.3 billion in penalties. As part of the settlement, members of the Sackler family will pay $225 million in civil penalties.
In a statement issued after the announcement of the settlement in October, Purdue said it “deeply regrets and accepts responsibility” for misconduct involving its marketing of OxyContin.
The federal settlement with Purdue comes as states and municipalities seek compensation from opioid makers for helping fuel a health crisis that has killed more than 450,000 Americans since 1999. Purdue is now seeking bankruptcy protection, as are other manufacturers.
“This is the banality of evil, M.B.A. edition,” Anand Giridharadas, a former McKinsey consultant who reviewed the documents, said of the firm’s work with Purdue. “They knew what was going on. And they found a way to look past it, through it, around it, so as to answer the only questions they cared about: how to make the client money and, when the walls closed in, how to protect themselves.”
Mr. Giridharadas is a New York Times contributor who wrote a 2018 book that examined the power of elites, including those at McKinsey, for how they evade responsibility for social harm.
In recent years, McKinsey has attracted criticism and unwanted attention for its dealings around the world, including in authoritarian countries such as China, Russia and Saudi Arabia. Its business in South Africa was decimated after McKinsey worked with companies tied to a corruption scandal that led to the ouster of the country’s president. In the United States, McKinsey worked with Immigration and Customs Enforcement under President Trump, proposing ways to cut spending on food and housing for detainees.
The documents released last week detail McKinsey’s work with Purdue going back to 2008, the year after the drugmaker pleaded guilty to misleading regulators. The Food and Drug Administration had previously told Purdue that OxyContin would face sales restrictions and that doctors prescribing it would require specialized training.
The Sackler family saw those rules as a threat and, joining with McKinsey, made a plan to “band together” with other opioid makers to push back, according to one email. McKinsey prepped Purdue executives for a vital meeting before an F.D.A. advisory committee reviewing its proposed reformulation of OxyContin to make it less prone to abuse. The reformulation went on the market in 2010.
McKinsey put together briefing materials that anticipated questions Purdue would receive. One possible question: “Who at Purdue takes personal responsibility for these deaths?”
The proposed answer: “We all feel responsible.”
by Walt Bogdanich and Michael Forsythe, NY Times | Read more:
Image: Yuri Gripas/Reuters
