OxyContin Nation: Meet The Billionaire Family Who Helped Spark America"s Opiod Crisis

Via StockBoardAsset.com,

Unbeknownst to many, the Sackler Family, with assets of $13 billion, the nation’s 19th wealthiest family is one the top players in philanthropy. You can find the Sackler Gallery in the Smithsonian museum in Washington, D.C. or visit the Sackler wing at the Metropolitan Museum of Art in New York City. The Sackler’s even have a museum at Harvard, Guggenheim, and dozen of universities around the country. If it’s art— the Sackler family has it.

Participating in the art game takes money and a lot of it. So, where does the Sackler money come from?

According to Forbes, the “Sacklers continue to reap hundreds of millions of dollars in profits from the businesses in 2016– some $700 million last year, by Forbes’ calculations - from an estimated $3 billion in Purdue Pharma revenues plus at least $1.5 billion in sales from their foreign companies”.

Forbes outlines a brief history lesson of how the Sackler family got started in the world of medicine-

The family fortune began in 1952 when three doctors — Arthur (d. 1987), Mortimer (d. 2010) and Raymond Sackler — purchased Purdue, then a small and struggling New York drug manufacturer. The company spent decades selling products like earwax remover and laxatives before moving into pain medications by the late 1980s. To create OxyContin, Purdue married oxycodone, a generic painkiller, with a time-release mechanism to combat abuse by spreading the drug’s effects over a half-day.

 

The FDA approved the medication in 1995 and it soon took off. By 2003 OxyContin sales hit $1.6 billion as the drug helped drive a huge nationwide spike in opioid prescribing. At its peak in 2012, doctors wrote more than 282 million prescriptions for opioid painkillers, including OxyContin, Vicodin and Percocet  — nearly enough for every American to have a bottle.

 

Now opioid prescriptions are declining amid increased scrutiny over drug addiction, down 12% since 2012 according to data from healthcare information firm IMS Health. OxyContin (which is also beginning to face competition from authorized generics while fighting to protect its patents over tamper-proof, extended-release oxycodone) saw prescriptions fall 17%.  

It wasn’t until the 1980’s, as explained by Forbes, the Sackler family through their family-owned drug company called Purdue Pharma created OxyContin. Then in 1995, the FDA approved the medication and sales exploded. Sales hit $1.6 billion in 2003, as a nationwide spike in opioids was seen. By the peak in 2012, doctors wrote more than 282 million prescription for opioid painkillers, such as OxyContin, Vicodin and Percocet. Good times for the Sacklers from 1996- 2012, as the family drug business exploded.

According to The New Yorker, Oxycontin ” has reportedly generated some thirty-five billion dollars in revenue for Purdue” since 1995. OxyContin’s sole active ingredient is oxycodone, a chemical cousin of heroin, which makes it highly addictive.

The New Yorker further says Purdue used marketing techniques to deceive the American public of the drug’s true addictive characteristics.

Purdue launched OxyContin with a marketing campaign that attempted to counter this attitude and change the prescribing habits of doctors. The company funded research and paid doctors to make the case that concerns about opioid addiction were overblown, and that OxyContin could safely treat an ever-wider range of maladies. Sales representatives marketed OxyContin as a product “to start with and to stay with.” Millions of patients found the drug to be a vital salve for excruciating pain. But many others grew so hooked on it that, between doses, they experienced debilitating withdrawal.

Oddly enough, around the time OxyContin was approved, prescription opioid deaths across the United States surged. Fast forward to more relevant times, where heroin and fentanyl deaths are exploding.

Diving into the opioid crisis onto the streets of Baltimore. It’s very common to see local citizens shooting up heroin on city streets. In this video, I asked a man how did this addiction start? Guess what he said?... It all started with legal painkillers, such as OxyContin. 

As a few parasitical elites make billions flooding America’s streets with opioids. We the every day American citizen have to deal with the consequences, as President Trump outlined in yesterday’s opioid crisis speech:

• In 2016, more than two million Americans had an addiction to prescription or illicit opioids.


• Since 2000, over 300,000 Americans have died from overdoses involving opioids.


• Drug overdoses are now the leading cause of injury death in the United States, outnumbering both traffic crashes and gun-related deaths.


• In 2015, there were 52,404 drug overdose deaths — 33,091 of those deaths, almost two-thirds, involved the use of opioids.


• The situation has only gotten worse, with drug overdose deaths in 2016 expected to exceed 64,000.


• This represents a rate of 175 deaths a day.

Bottomline: It’s time for the American people to learn the truth about the opioid crisis and the very few elites who have profited. The question You should ask: why did our government allow this to happen?

The Government Has Created Every Step In The Development Of The Opiod Crisis

Authored by Mark Thornton via The Mises Institute,

The Washington Post and “60 Minutes” have just peeled back another sordid layer in the War on Drugs by exposing Big Pharma’s role in expanding the Opiod Crisis that has resulted in more than 30,000 deaths per year.

All the disgusting details can be found here, but it is really a straight forward case of legal bribery and corruption in the market for legal opiates — the driving force in this crisis as doctors continue to turn untold thousands of innocent people into opiate addicts.

Opiate medicines have been a Godsend to humanity, but it comes also with scourge of addiction, dependence, and overdose deaths. The Harrison Narcotics Act of 1914 made the situation worse thanks to the meddling of federal bureaucrats who turned regulation and oversight into prohibition.

One of the most demaging side effects of federal meddling in drug markets, however, has been the Opiod Crisis. I have detailed here and here the primary cause as Big Pharma bribing the board responsible for setting pain maintenance guidelines and the resulting explosion of prescriptions for Opiod drugs by doctors.

The newest wrinkle uncovered shows that pharmaceutical drug distributors have paid off select members of Congress to rewrite the enforcement guidelines for the Drug Enforcement Agency (DEA). A good case in point is Representative Tom Marino who withdrew his name from consideration as President Trump’s Drug Czar.

The new guidelines and their enforcement have effectively neutered any restraint on pharmaceutical producers and distributors. They can sell untold millions of these pills to pharmacies and pain clinics without any constraints. The additional cost of producing these heroin-like pills is virtually zero.

Is Bribery and Corruption a Good Thing?

Normally, bribery and corruption of public officials is a good thing because it allows more producers and more consumers to obtain gains from trade from each other. Such is not the case with prescription opiates in this environment.

The problem here is that there is not a functioning marketplace at all when it comes to distribution of prescription opiates. It is a government-granted monopoly in every respect. The products we are examining have not passed the market test and the producers are effectively protected by the government against torts, liability, and claims of misrepresentation.

In addition, pharmaceutical drugs have been approved by the Food and Drug Administration (FDA) and, essentially, the FDA grants monopolies to drug companies for their patented drugs and gives them an FDA seal of approval that the drugs are safe and effective.

Then another government-created monopoly, the American Medical Association (AMA) and its doctor-members have the monopoly on writing the necessary prescriptions to obtain drugs from yet another monopoly the pharmacists.

A doctor’s prescription is essentially another AMA seal of approval that the vast majority of people do not even question or even concern themselves with what they are taking. All of these monopolies are usually protected when consumers die as long as it happened when all the monopoly rules are followed.

Thus, with these products, like Oxycontin and Vicodin, there is no attempt to pass the "market test" by seeking to primarily please consumers. Instead, consumers end up being an afterthought after producers of the drug have catered to the needs and desires of countless regulatory agencies.  In real free market competition, an entrepreneur of dangerous products has to assure consumers that the products are safe and effective enough to use compared to the alternatives.

Opiates in Unhampered Markets

In other words, pain medications do not have to be perfectly safe and perfectly effective to be the best alternative choice for people who suffer with pain. However, they have to be reasonably safe and effective. The high potential for addiction, harm to health, and even death would be a “competitive disadvantage” in a real free market.

Just the opposite is the case here.

The government has created and overseen the creation of every step in the development of this crisis. The fact that crony capitalists have taken advantage of the situation should not be a surprise, especially when it is the only way to legally participate in the pharmaceuticals "market." 

 

The Real Cause Of America's Opioid Epidemic

The Opioid epidemic is spreading across the heartland of America. The number of drug overdose deaths from both prescription (e.g., Oxycontin) and black market (e.g., heroin) opiates exceeded 30,000 in 2015. Initial estimates for 2016 indicate yet another new record of deaths. It is such an enormous problem that I taught a special class on it at our undergraduate instructional conference, Mises University, which you can listen to here.

Recently the Commission on Combating the Opioid Crisis issued a preliminary report and recommended that the president declare a national emergency.

From 2002 to 2015 the number of such deaths has increased by 280%. The chart below shows that prescription opiates were the main contributor from 2002 to 2011. Illicit opiates have been the main contributor since:

It is vitally important that we understand what is causing this epidemic and even more important, how do we solve it. Plus, we need to avoid becoming a victim of it. In the past, most people ignored the issue of drug overdoses as merely an urban “junkie” problem, but this epidemic is hitting ordinary Americans such as coal miners, teachers, and high school football players.

The Washington Post asserted that the problem arose because of “aggressive marketing” on the part of the pharmaceutical companies that sell opiate painkillers. Others on the left think it is an arbitrary explosion of demand. They make it sound like market failure, but the “aggressive marketing” was not slick TV commercials. Rather, the drug companies targeted doctors, not consumers. They provided many lucrative carrots to doctors and spent resources lobbying to change regulations and pain prescribing guidelines in order to rig the FDA/AMA system in their favor.

In terms of solutions, leftists advocate spending lots of more money on just about everything they can think of, especially drug addiction treatment programs, but such programs are both extremely expensive and ineffective.

Conservatives tend to think of the cause of the epidemic in terms of the evil Mexicans and Chinese, along with street dealers and drug gangs. The Trump administration thinks that building the Mexican wall will help. They have also advocated for policies that have been demonstrated to be failures, such as expanding minimum mandatory prison sentences and asset forfeiture programs. They think expanding the D.A.R.E. program will help solve the problem, but several government-sponsored reports have discredited the effectiveness of the Drug Awareness Resistance Education program.

The real cause of this epidemic is various government policies and the real solution is the dismantling of those same policies, in perpetuum.

The Four Causes

Let us start with drug prohibition which dates back to the Harrison Narcotic Act of 1914. Drug prohibition results in a black market where illegal products are not commercially produced and where suppliers are not constrained by the rule of law and product liability law. The result is that illegal drugs are more dangerous than legal drugs. Potency varies greatly from batch to batch and products often contain dangerous impurities and substitute ingredients. Opiate overdoses often occur when an addict is unaware that a particular dose is highly potent or contains Fentanyl, a pain medication that is 50 to a 1,000 times more potent than morphine.

The next cause is called the Iron Law of Prohibition, a phrase first used by Richard Cowan to describe the phenomenon that when drug law enforcement becomes more powerful, the potency of illegal drugs increases. One of the effects of enhancing prohibition enforcement is that suppliers will produce a higher potency drug. For example, during alcohol prohibition in the 1920s suppliers switched from producing beer and wine to highly potent spirits, such as gin and whiskey.

A second result of more rigorous prohibition enforcement is that suppliers will switch from lower potency drug types to higher potency drug types. For example, during Ronald Reagan’s “war on drugs” during the 1980s, smugglers switched from bulky marijuana to highly concentrated cocaine and domestic suppliers turned much of this cocaine into crack cocaine, resulting in the crack cocaine epidemic. The Iron Law of Prohibition explains why we see more and more dangerous drugs on the black market and why we see decreases in overdoses in states that have legalized cannabis.

Government intervention in the economy is a largely unrecognized cause of addiction. Intervention has at least two distinct channels of creating addicts. The first is war. War creates addicts through both painful physical injuries and painful emotional and psychological disorders, such as Post Traumatic Stress Disorders. The second cause is the general impact of widespread government intervention in the economy. Much of government interventionism results in the creation of privileges and monopoly power. For example, licensing requirements provide members of a profession, such as medical doctors, with monopoly profits by restricting the number of practicing physicians. This enriches licensed doctors and impoverishes potential doctors who must find work in another profession. These excess potential doctors thereby suppress wages in other labor markets. Given the pervasiveness of government intervention, this creates two classes in labor markets — the advantaged and the disadvantaged and addiction tends to develop in disadvantaged labor markets where people are more likely to be despondent and lack hope and economic resources.

The three above causes have been around for a long time creating the environment for drug overdoses, but at much lower levels than we see today.

The final cause has only been around for a couple of decades, but it is now responsible for the majority of deaths. Alluded to above, Big Pharma undertook “aggressive marketing” in order to encourage doctors to write massive numbers of prescriptions for opiate painkillers and to change to pain prescribing guidelines in order to sell more of these heroin-like pills.

As a result, doctors began prescribing drugs such as Oxycontin and Vicodin, which are similar to opiates, such as morphine and heroin, for ordinary injuries and minor surgeries. The problem with this is that if you take these pills for 30 or 60 days, there is a distinct possibility that you will become physically addicted to them. The doctor is not going to write you refills for the prescription once the injury has healed.

This leaves the addict with three bad choices.

One, you can enter a drug addiction rehabilitation program, but these programs are expensive and are not necessarily effective.

Two, you can go cold turkey. However, detoxification comes with a slew of physical and psychological symptoms and can result in suicide and death.

Three, you can go into the black market and buy illegal Oxycontin and Vicodin pills. The problem with this option is that such pills are expensive and have an unstable supply. What happens if you choose this option, but run low on money or have trouble acquiring the pills? Well, very often the drug dealer who sold you the pills can also sell you heroin or tell you where to buy it. Heroin is often cheaper per dose and has a more stable supply. This is how people who would never even consider entering a room in which heroin was present become heroin addicts. This process is what has caused the major surge in drug overdoses.

The solution to the epidemic is to legalize drugs. Doctors should be able to put their patients on drug maintenance and recovery programs. Commercially produced opiates would be pure and relatively safe. Addicts could go about their lives, attempting to recover physically, psychologically, socially, and economically without having to worry about how to obtain and pay for their drugs. Drug addiction is often a multi-faceted problem that simply cannot be fixed with a 30 day rehab experience. Addicts that are successfully detoxed, but without solving more basic problems, often relapse and die because the dose they take is now too strong for their detoxed body.

Legalizing cannabis would also be a key to solving the epidemic. Legal cannabis improves the epidemic through two channels. First, medical formulations of cannabis can be a potent, but non-addictive pain killer. Therefore, legalization leads to a reduced level of opiate use, abuse, and mortality and there are several peer-reviewed studies that confirm this. Second, because cannabis reduces pain and anxiety, and improves sleep and appetite it is very helpful for those who are trying to beat their heroin addiction.

The Opioid epidemic is killing more than 30,000 Americans a year. For most experts, the epidemic is a mystery with regard to its cause and solution. A little progress has been made, but to really eliminate the problem we need to legalize drugs, reduce the size of government, and increase freedom in our lives. We also need to find an answer for the pain epidemic which has shackled too many Americans to Big Pharma and the medical belief that every symptom requires another prescription!

Tennessee Counties Sue Opioid Makers Using Local "Crack Tax" Law

The US opioid epidemic has continued to worsen in 2017 as super-powerful synthetic opioids like fentanyl and carfentanil taint the nation’s heroin supply. While the FBI’s final tally has yet to arrive, preliminary data suggest that overdose deaths last year eclipsed the 50,000 recorded nationally in 2015 – the most ever. And the body count is expected to be even higher in 2017. As the death toll in some of the hardest-hit areas of the country skyrockets - in some cases forcing county coroners to build larger freezers to store the bodies – states have begun filing lawsuits against the pharmaceutical companies responsible for making and marketing opioid painkillers, in hopes of offsetting the ballooning public-health costs that have been a byproduct of the crisis.

Three Tennessee district attorneys are the latest prosecutors to file suit against the drug makers, joining a group that includes the attorneys general of Ohio, Illinois, Mississippi, New York and Santa Clara and Orange County in California – not to mention the Cherokee Nation. But the Tennessee prosecutors" approach differs from their peers in one unique way:

They are suing under the state’s long-ridiculed and rarely used “crack tax” law, which would hold Big Pharma liable for damages as if they were street-level drug dealers, the Knoxville News Sentinel reported.

While the companies targeted by individual states differ, prosecutors are all alleging similar misconduct: That the pharmaceutical companies leaned on researchers to play down the drugs’ addictive qualities, while spending millions on marketing them to both patients and doctors.

Another lawsuit filed in Washington in January alleged that Purdue Pharma, maker of OxyContin, was aware of the drug’s immense popularity on the streets, but did nothing to curb its distribution.

The suit also names a “Baby Doe” as a plaintiff. “Baby Doe,” the News Sentinel reports, is a boy born in March 2015 addicted to opiates because his mother, identified as “Mary Doe,” was an opiate addict and bought her drugs in Sullivan County, one of the three judicial districts represented in the legal action.

Filed on behalf of the three prosecutors and Baby Doe by Nashville law firm Branstetter, Stranch and Jennings, the lawsuit spends dozens of pages detailing publicly available accounts of alleged fraud and deceptive marketing practices by opiate manufacturers.

“It is now beyond reasonable question that the manufacturer defendants’ fraud caused Mary Doe and thousands of others in Tennessee to become addicted to opioids — an addiction that, thanks to their fraudulent conduct, was all but certain to occur,” the lawsuit stated.

Tennessee logs more opiate prescriptions per capita than every state in the nation except West Virginia, the News Sentinel reported. Sullivan County is considered an epicenter, so much so its law enforcement agencies snared their own reality television shows. Shelby County in West Tennessee is also considering joining the lawsuit.

Tennessee Attorney General Herbert Slatery III issued a statement Tuesday in which he said his office is investigating the state"s options in pursuing its own legal action.

"Our objective is to identify and hold accountable the parties responsible for this opioid epidemic," the statement read.

That “crack tax” – otherwise known as the drug dealer liability statute - was passed in 2005 to allow for civil action against street drug dealers, many of whom were peddling crack.

However, since police typically seize convicted drug dealers’ profits under criminal and civil forfeiture laws – and since most drug dealers go to prison after they’re arrested – there was rarely anything left to be claimed in civil court.

But unlike street dealers, pharma firms are flush with cash. Purdue has annual sales of nearly $3 billion, while Mallinckrodt and Endo also rack up billions each year from sales of opiate drugs.

Many legal experts have said that the current batch of lawsuits resembles the 1998 settlement between the four largest US tobacco companies – Philip Morris, RJ Reynolds, Brown & Williamson and Lorillard – and 46 states attorneys general. In accordance with that judgment, the tobacco companies agreed to pay out more than $200 billion through 2025, with payments to be made in perpetuity.

While states are no doubt in need of financial resources to offset the public-health costs they’re forced to absorb because of the epidemic, pharmaceutical companies have at least one strategy to legally deflect blame: If the showdown ever makes it to trial, defense attorneys will try to slough off as much blame as possible on the overprescribing doctors, like one elderly physician who was arrested earlier this month in New York City and charged with needlessly prescribing millions of pills. 

Doug Casey On The Opioid Crisis

But it’s not necessarily physical pain. It’s psychological pain, which may be even more important. And psychological pain means that people want to check out of reality. So as the economy gets worse—and I think it will get much, much worse in the near future—you can expect levels of addiction to skyrocket, not to go down.Addiction is a bad habit, but it’s nobody else’s business. From an ethical point of view, your primary possession is your own body. If you don’t own it, and have a right to do whatever you want with it, then you in fact have no rights at all. That’s why the drug war itself is criminal, and morally insane.The efforts of dangerous idiots like Sheriff Grinnell are counterproductive. If they confiscate a ton of drugs, that just drives up the market price for those that remain. And increases the profits of dealers, drawing more dealers into the business. And encouraging addicts who can’t afford the higher prices to turn to crime in order to support their habit. That’s entirely apart from increasing the level of violence in society, corrupting the police, and lots of other negative fallout.I’m always amazed by the immense hypocrisy and stupidity of the drug warriors, as well.For instance, Rush Limbaugh has always been a major drug warrior. He’s actually said on his show that junkies should be executed because they’re such a danger. And then, what do you know? Turns out that he was an oxycodone junkie. Just like the major crusaders against homosexuality—mirabile dictu—turn out to be closet queers themselves half the time. Like Larry Craig, the Republican Senator who claimed he just had a “wide stance” in a public men’s room.These people seem driven to make laws against the very things they most fear in themselves.Justin: What’s fueling this crisis?Doug: Well, many of these opioids are being paid for by Medicaid and Medicare. So the government’s actually paying for the drug boom.And it’s especially perverse because drugs were a non-problem before the Harrison Act, which was passed in 1914. The act basically made all opium and coca derivatives illegal in the US. Before that there were very few people that were addicted to narcotics, even though narcotics were available to anybody at the local corner drugstore. Addicts were looked down on as suffering from a moral failure, but there was no more profit in heroin than in aspirin. So there were no cartels or drug gangs.What we’re dealing with isn’t a medical problem, it’s a psychological, even a spiritual, problem. And a legal problem, because self-righteous busybodies keep passing laws—with very severe penalties—regulating what people can or can’t do with their own bodies. It’s part of the general degradation of civilization that I’ve been putting my finger on over the last few years.The government is the problem behind addiction, on all levels. It’s a major cause for people feeling psychological pain. And they’re the sole reason these medicines are illegal and unavailable. On the subject of addiction, people can become addicted to most anything—food, sugar, alcohol, gambling, sleep, sex—you name it. It’s not good when you do too much of absolutely anything. But so what?Justin: So, I take it prohibition isn’t the answer?Doug: Illegalizing something does nothing but create a black market and give people a reason to induce other people to get high. I mean, people have been drinking alcohol for about the last 10,000 years. But it didn’t become a real problem until the Eighteenth Amendment and the Volstead Act passed in 1920. At that point, it financed the mafia. Laws turn simple bad habits into massive and profitable criminal enterprises.The government learned absolutely nothing from the failure of alcohol prohibition. What they’re doing with drugs makes an occasional, trivial problem into a national catastrophe…Justin: Thanks for sharing your thoughts, Doug.Doug: My pleasure.