Confirmed Plan of Reorganization of Purdue Pharma L.P. Facilitates Creation of New Company – “Knoa Pharma”
STAMFORD, Conn.--(BUSINESS WIRE)--Sep 3, 2021--
Following the United States Bankruptcy Court approval of the Purdue Pharma L.P. chapter 11 plan of reorganization (the “Plan”), the name of the new company that will emerge was announced: Knoa Pharma LLC (pronounced “No-ah”). The name was selected by the Company’s creditors.
“With a confirmed Plan under which Purdue will fade away, and a corporate identity for the new company that will receive its assets, we are another step closer to delivering billions of dollars of value to communities across the country to help address and abate the opioid crisis,” said Purdue Board Chairman Steve Miller. “The creditors’ selection of this strong name is a tangible sign that this long bankruptcy process is coming to a productive conclusion where the fighting can end and the flow of funds can begin.”
The name connotes knowledge that Knoa Pharma will bring to the responsible operations of a pharmaceutical company. It also refers to ownership by the National Opioid Abatement Trust (“NOAT”), evoking the new company’s mission and obligation to abate the opioid crisis.
Knoa Pharma will develop and distribute millions of doses of opioid addiction treatment and overdose reversal medicines. It will also continue serving patients and consumers who rely on Purdue’s existing medicines and products; and it will utilize its scientific capabilities to bring to market other potentially life-saving medicines in its pipeline.
Knoa Pharma will be governed by new independent board members selected by the stakeholders. The new company will operate in a responsible and sustainable manner, taking into account long-term public health interests related to the opioid crisis. Knoa Pharma will be subject to operating covenants to ensure that all of its products, including all opioid products, are provided in a safe manner that reduces the risk of diversion. It will be held to the highest standards of conduct and required to comply with a detailed injunction restricting the promotion of opioid products. A corporate monitor will continue to ensure that the new company complies with the court-ordered injunction, and will report regularly on compliance.
Knoa Pharma will be ultimately owned by NOAT, the trust being established to fund opioid crisis abatement efforts in satisfaction of the claims brought by states and localities, as well as an opioid abatement trust established for the benefit of Native American Tribes (the “Tribe Trust”). Proceeds will also flow to opioid abatement trusts established for the benefit of other creditors such as hospitals, schools, and children with a history of Neonatal Abstinence Syndrome and their guardians; and to a fund for the benefit of personal injury victims.
Knoa Pharma will commence doing business once the Purdue Pharma plan of reorganization becomes effective.
About Purdue Pharma L.P.
Purdue Pharma and its subsidiaries develop, manufacture and market medications and consumer health products to meet the evolving needs of healthcare professionals, patients, consumers and caregivers.
Purdue’s plan of reorganization will deliver billions in value to communities across the country to fund programs specifically for abatement of the opioid crisis. The bankruptcy settlement will also deliver funds to private abatement trusts for the benefit of personal injury claimants.
Substantially all of Purdue’s assets will be transferred to a new post-emergence company with a public-minded mission. This new company will be governed by new independent board members, and will operate in a responsible and sustainable manner taking into account long-term public health interests relating to the opioid crisis. The company will continue serving patients and consumers who rely on its medicines and products, pursuing its pipeline, and introducing medicines that will help save and improve lives.
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KEYWORD: CONNECTICUT UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: BIOTECHNOLOGY PHARMACEUTICAL HEALTH OTHER HEALTH
SOURCE: Purdue Pharma L.P.
Copyright Business Wire 2021.
PUB: 09/03/2021 04:01 PM/DISC: 09/03/2021 04:02 PM