Hedge funds distance themselves from Purdue Pharma
The troubles of Purdue Pharma, the maker of the opioid OxyContin, have led two hedge funds to cut ties with the company as legal consequences from the national opioid abuse and overdose epidemic continue to play out.
The two hedge funds, DeepCurrent Investment Group and Sunriver Management, have redeemed investments from a private investment firm, Kokino, owned by the Sackler family, which owns Purdue Pharma, The Wall Street Journal reported. The Sacklers and Purdue Pharma reached a settlement between $10 billion and $12 billion to resolve litigation against the pharmaceutical maker over its role in the opioid epidemic. The settlement also required the Sackler family to give up control of the company and contribute $3 billion into the settlement over the next several years.
Sunriver has moved out of its Stamford, Conn., office, which was also located in the same building as Purdue Pharma and owned by members of the Sackler family. Sunriver also cut its profit-sharing agreement with Kokino, The WSJ reported. The hedge fund had allegedly encountered problems with potential clients who were uncomfortable with the connection to the Sackler family and Purdue Pharma.
At least two other hedge funds in Stamford and Boston have also returned money they invested for the Sackler family entities.
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Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."