4.5 • 705 Ratings
🗓️ 27 August 2019
⏱️ 10 minutes
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0:00.0 | Welcome to access pro rata, where we take just 10 minutes to get you smarter on the collision of tech, business, and politics. |
0:13.5 | I'm Dan Pramak. On today's show, the U.S. and France reach an internet tax truce and how an airline failure could tank a country's entire economy. |
0:22.3 | But first, opioids and Oklahoma. |
0:24.5 | So yesterday, an Oklahoma judge found Johnson and Johnson responsible for fueling the state's |
0:29.9 | opioid epidemic, which is estimated to have led to over 6,000 deaths since the year 2000. |
0:35.4 | Now, no one from Johnson Johnson is going to jail, but the company |
0:38.3 | will need to pay $572 million in damages. Why it matters is that this is the first time ever |
0:44.7 | that a drug maker has been held liable in an opioids case, and it sets the stage for the first |
0:49.5 | federal opioids trial, which is set to take place this fall in Ohio, and the defendants there |
0:54.4 | include a large group of manufacturers, distributors, and pharmacies. Before this, we had simply |
0:59.7 | seen out-of-court settlements, including a couple in Oklahoma. Now, Johnson Johnson has already |
1:04.3 | vowed to appeal, but that's probably more about not wanting to set precedent than it is about |
1:08.8 | the $572 million fine. That amount may help |
1:12.0 | Oklahoma fund lots of treatment centers, but it's less than 4% of Johnson and Johnson's |
1:17.1 | annual profits and a pittance compared to the $17 billion that Oklahoma's attorney general had |
1:22.8 | asked for. It's also way less than the $2 billion or so that Wall Street had expected, |
1:27.4 | which is why Johnson and Johnson's stock actually rose after the verdict and also rising were other drug makers who are on the hook potentially in Ohio. |
1:35.4 | So the big question now is if the Oklahoma judge has set basically a market rate or if he's an outlier, maybe just a toe in the water before the tsunami of penalties to come. |
1:46.3 | In 15 seconds, we'll go deeper with Axios Healthcare Business Reporter Bob Herman. |
1:50.2 | But first, this. |
1:51.6 | There is more news out there than ever before, but these days, it's harder than ever to find it and to know what to trust. |
1:57.3 | Axios AM takes the effort out of getting smart by synthesizing the 10 stories that will |
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