Shares of major drug dealers are on the rise following a report that they have made an offer to resolve opioid crisis disputes.
Two people with knowledge of the negotiations, which have been underway for months, confirmed to The Associated Press that McKesson, AmerisourceBergen and Cardinal Health have offered $ 18 billion over 18 years to resolve more than 2,000 lawsuits across the country. People spoke on condition of anonymity because the agreement talks are ongoing.
The offer was first reported by The Wall Street Journal.
Shares of McKesson, AmerisourceBergen and Cardinal advanced more than 6% after the opening bell, while broader indices fell.
All three companies are being prosecuted in the first federal trial for the epidemic. The jury selection in this case, which will be tried in Ohio, was scheduled to begin Wednesday.
Investors expect a deal that will range from $ 15 billion to $ 25 billion over five to 10 years, Jefferies analyst Brian Tanquilut said in a research note. He added that the informed agreement should be seen positively.
Tanquilut noted that uncertainty over liability in an opium deal made investors reluctant to buy the shares.
The Sackler family could pay billions to settle opioid lawsuits
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Counting over-the-counter and illegal drugs such as heroin and illicitly manufactured fentanyl, opioids have been blamed for more than 400,000 deaths in the United States since 2000.
This trial is considered a starting point because it could help shape the way future trials are conducted or possibly stimulate the global settlement sought by U.S. District Court Judge Dan Polster, who oversees more than 2,000 lawsuits filed. by local governments and other entities against pharmaceutical companies.
Five drug manufacturers, including Purdue Pharma, have already used bankruptcy agreements or statements to be fired.
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- Opioid epidemic
- epidemic
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