• 02
  • September
    2011

In our previous post, we noted that Israel-based generic pharmaceutical manufacturer Teva recently went through a second trial over accusations that it compromised patient safety at the expense of safety in the sale of the anesthetic propofol. Teva's current and former distributors for the drug, Baxter and McKesson, have also been implicated.

As we noted in our last post, the attorney in charge of that case argued that the companies had knowledge that selling propofol in large vials increased the risk of exposure to blood-borne diseases like hepatitis, but retained the larger vials to decrease production costs.

The trial stems from an outbreak of hepatitis several years ago in southern Nevada caused by Teva's reuse of large vials for distribution of the anesthetic. That outbreak resulted in the indictment of the doctor who ran the Endoscopy Center of Southern Nevada on criminal charges. That doctor, who also faces other federal charges, has since been found incompetent to stand trial.

Some of the cases stemming from the outbreak have resulted in large settlements. In 2010, one Nevada man who argued he developed hepatitis C after receiving tainted propofol during a colonoscopy procedure was awarded $5.1 million in compensatory damages and another $500 million in punitive damages against Teva and Baxter. In that case, Teva was hit with $356 million in punitive damages, and Baxter with $144 million. Another $8.4 million in attorneys' fees and $9 million in interest were later added to that, making the case the larges jury award in the nation for 2010. The current trial against the company may top that amount in punitive damages.

Source: Businessweek, "Teva Faces Second Trial Over Hepatitis Cases Linked to Drug," Jef Feeley, August 18, 2011.