Purdue Pharma, the maker of OxyContin, received a U.S. judge’s permission on Tuesday to sell its consumer health business for $397 million to a subsidiary of Arcadia Consumer Healthcare. The sale is part of Purdue’s effort to liquidate its assets while it awaits a final ruling on a $10 billion settlement that would devote the company’s remaining resources to combating the U.S. opioid epidemic.
The company’s creditors’ committee has pushed for the proceeds from the sale to be used to compensate victims of the opioid crisis and fund addiction treatment programs. Purdue attorney Eli Vonnegut said at Tuesday’s hearing that the company supports that goal, but will need to build consensus among various stakeholders in its bankruptcy first.
Avrio Health, the consumer health business being sold, has never been involved in Purdue’s opioid business. It sells over-the-counter antiseptics and laxatives. Purdue initially planned to sell the business as part of its post-bankruptcy transition to a nonprofit company devoted to combating opioid overdoses and opioid use disorder.
The 2nd U.S. Circuit Court of Appeals is yet to rule on an appeal challenging the company’s effort to shield its owners, members of the wealthy Sackler family, from liability in exchange for a $6 billion contribution to Purdue’s settlement.