The alleged link of Purdue Pharma LP in the U.S. opioid crisis has forced JPMorgan Chase & Co to cut its banking ties with the company, claimed a report published by the Reuters. The OxyContin maker has now been forced to seek out partnership with the new bank for management of its cash and bill payments, claimed the report citing information from sources with knowledge of the matter.
Purdue, which is owned by the wealthy Sackler family, has been faced with thousands of lawsuits that charge the company of intentionally and willingly push selling addictive painkillers and now talking about the risk with their abuse and overdose. This scandal has now forced JPMorgan, according to the report, to become the most high-profile company to have distanced itself from the company.
The decision of JP Morgan is reflective of a conscious effort by US banks to re-evaluate their business tie ups with clients and industries given the increasing number of controversies and political debates on issues like immigration detention and mass shootings.
The report quoted sources as saying that a six month notice was given in March to Purdue by After JPMorgan to allow the former to seek out a new bank. The report also claimed that Purdue has already struck a deal with Dallas-based regional bank Comerica Inc for management of its financial transactions and accounts.
The report further claimed that JPMorgan made it clear to Purdue that the reason for its decision was the risk to its reputation because of association with the drugmaker which has faced severe public backlash because of the opioid scandal.
Purdue’s cash and bill payments were managed by JPMorgan’s commercial bank even though no loan was granted to it by the bank. The report also claimed that it is not yet clear how long JPMorgan served as Purdue’s bank.
“Purdue is a streamlined organization with an exciting pipeline of new medicines and significant cash reserves,” the company said in a statement. “The company has multiple banking relationships and will not have any interruption to its banking and financial service needs.”
There were no comments to the report by JPMorgan and Comerica.
The Stamford, Connecticut-based company – Purdue, is now looking at more than 2,000 lawsuits in which the claimants have charged the company of pursuing aggressive marketing strategies for its prescription opioids but misleading prescribers and consumers in the process with respect to not properly disclosing the risks posed to users from their prolonged usage.
Allegations of its role in the US opioid crisis have been vehemently denied by Purdue and argued on the basis of the company being awarded approvals from the US Food and Drug Administration for the labels of its drugs which carried warnings related to the health risks posed by abuse associated with treating pain. Heroin and fentanyl are currently more significant culprits in the opioid epidemic, argued Purdue and its family owners.
(Source:www.reuters.com)
Purdue, which is owned by the wealthy Sackler family, has been faced with thousands of lawsuits that charge the company of intentionally and willingly push selling addictive painkillers and now talking about the risk with their abuse and overdose. This scandal has now forced JPMorgan, according to the report, to become the most high-profile company to have distanced itself from the company.
The decision of JP Morgan is reflective of a conscious effort by US banks to re-evaluate their business tie ups with clients and industries given the increasing number of controversies and political debates on issues like immigration detention and mass shootings.
The report quoted sources as saying that a six month notice was given in March to Purdue by After JPMorgan to allow the former to seek out a new bank. The report also claimed that Purdue has already struck a deal with Dallas-based regional bank Comerica Inc for management of its financial transactions and accounts.
The report further claimed that JPMorgan made it clear to Purdue that the reason for its decision was the risk to its reputation because of association with the drugmaker which has faced severe public backlash because of the opioid scandal.
Purdue’s cash and bill payments were managed by JPMorgan’s commercial bank even though no loan was granted to it by the bank. The report also claimed that it is not yet clear how long JPMorgan served as Purdue’s bank.
“Purdue is a streamlined organization with an exciting pipeline of new medicines and significant cash reserves,” the company said in a statement. “The company has multiple banking relationships and will not have any interruption to its banking and financial service needs.”
There were no comments to the report by JPMorgan and Comerica.
The Stamford, Connecticut-based company – Purdue, is now looking at more than 2,000 lawsuits in which the claimants have charged the company of pursuing aggressive marketing strategies for its prescription opioids but misleading prescribers and consumers in the process with respect to not properly disclosing the risks posed to users from their prolonged usage.
Allegations of its role in the US opioid crisis have been vehemently denied by Purdue and argued on the basis of the company being awarded approvals from the US Food and Drug Administration for the labels of its drugs which carried warnings related to the health risks posed by abuse associated with treating pain. Heroin and fentanyl are currently more significant culprits in the opioid epidemic, argued Purdue and its family owners.
(Source:www.reuters.com)
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