The National Portrait Gallery will not accept a £1 million donation from The Sackler Trust following protests about the family’s controversial manufacture of OxyContin.

The Sacklers were forced to withdraw their gift, which would have helped to fund redevelopment of the London gallery.

Last month, the US artist Nan Goldin said she would refuse a retrospective of her work at the NPG if it accepted the donation.

Members of the Sackler family have made billions from OxyContin, a highly addictive painkiller. A civil lawsuit alleges that their pharmaceutical firm pushed doctors to prescribe the drug and misrepresented its risk factors, contributing to the opioid crisis that is gripping the US. The family deny all allegations.

A statement issued by the NPG said the gallery and The Sackler Trust have “jointly agreed” not to proceed with the donation.

The family’s largesse has been lavished on the V&A, the National Gallery, the National Theatre, the Royal Opera House and many others.

A spokesperson for the Trust said: “The Sackler Trust has supported institutions playing crucial roles in health, education, science and the arts for almost half a century and we were pleased to have the opportunity to offer a new gift to support the National Portrait Gallery.