A Reckoning for an Opioid Giant

In a historic ruling with profound global implications for the pharmaceutical industry, a United States bankruptcy judge on Friday, November 14, 2025, indicated he will approve a settlement that will dissolve Purdue Pharma, the company behind the highly addictive painkiller OxyContin. The decision marks a pivotal moment in the fight to hold corporations accountable for their role in a public health catastrophe. The company's dissolution is part of a broader agreement that will see its owners, the Sackler family, contribute up to $7 billion towards abating the opioid crisis that has ravaged communities across the United States. The formal ruling is expected at a hearing on Tuesday, November 18, 2025, East Africa Time.

Purdue Pharma filed for Chapter 11 bankruptcy protection in 2019 following an avalanche of more than 2,600 lawsuits from state, local, and tribal governments. These legal actions accused the company of fueling the deadly opioid epidemic through a deceptive and aggressive marketing campaign that deliberately downplayed the addiction risks of OxyContin while exaggerating its benefits for treating chronic pain. This strategy led to widespread over-prescription, generating billions in revenue for the company and the Sackler family while contributing to a crisis linked to hundreds of thousands of overdose deaths in the U.S. since 1999.

The Global Ripple Effect and Kenyan Context

The Purdue Pharma saga serves as a stark warning to regulatory bodies worldwide, including Kenya's Pharmacy and Poisons Board (PPB), on the critical need for stringent oversight of pharmaceutical marketing and prescription practices. While the opioid crisis in Kenya has different origins, primarily linked to heroin trafficking and the abuse of other prescription opioids like codeine and tramadol, the availability of OxyContin in the country highlights a potential vulnerability. A 2019 investigation by the Daily Nation revealed that OxyContin could be purchased from some Nairobi pharmacies, at times even without the legally required prescription, demonstrating gaps in local enforcement that could be exploited.

Kenya's own battle with substance abuse is significant. According to a 2022 survey by the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA), prescription drugs are a notable part of the problem, with an estimated 60,407 Kenyans aged 15-65 currently using them for non-medical purposes. The average age of initiation for prescription drug abuse is between 16 and 20 years old. Furthermore, a 2023 study highlighted that 51.7% of Kenyan healthcare professionals have used addictive substances in their lifetime, sometimes turning to opioids to cope with work-related stress, pointing to systemic issues within the healthcare sector itself.

Terms of the Settlement: A New Model for Corporate Accountability?

Under the terms of the landmark settlement, Purdue Pharma will be restructured into a new, non-profit entity called Knoa Pharma. This new public benefit company will be governed by a board selected by the states and will be dedicated to developing and distributing opioid overdose reversal medications and addiction treatments at no profit. All of the company's profits will be directed to a trust to fund opioid abatement programs across the U.S.

The Sackler family, who withdrew billions from Purdue as legal pressures mounted, will be required to pay between $6.5 billion and $7 billion over approximately 15 years. This agreement follows the U.S. Supreme Court's rejection of a previous deal in 2024 that would have granted the family broad immunity from future civil lawsuits. The new plan allows victims and their families to opt out of the settlement and pursue individual claims against the Sacklers, a crucial revision that upholds a degree of personal accountability for the family members.

While no amount of money can undo the devastation caused, this resolution establishes a precedent for channeling corporate assets towards mitigating the public health crises they are found to have fueled. For Kenya and other nations, the dissolution of a once-mighty pharmaceutical giant is a powerful lesson in the potential consequences of prioritizing profit over public welfare and the enduring importance of robust, independent regulatory oversight in the healthcare sector.