Three major drug distributors are in talks to pay $18 billion to settle sweeping litigation brought by state and local governments blaming them for fueling the opioid crisis, the Wall Street Journal reported. The three distributors — McKesson Corp., AmerisourceBergen Corp. and Cardinal Health Inc. — would collectively pay $18 billion over 18 years under the deal currently on the table. Johnson & Johnson is also involved in the discussions to contribute additional money. Players up and down the pharmaceutical supply chain, including drugmakers, distributors and pharmacies, have been sued by virtually every state and thousands of city and county governments. Over 2,000 lawsuits allege that the industry’s overly aggressive marketing of prescription painkillers and lax oversight over drug distribution contributed to widespread opioid addiction. If finalized, the settlement would be the first to achieve a broad resolution of the opioid lawsuits outside of bankruptcy. OxyContin maker Purdue Pharma LP filed for bankruptcy last month to try to implement a settlement valued at around $10 billion to $12 billion but faces opposition from some states that say its owners — members of the Sackler family — should contribute more to the deal. Read more. (Subscription required.)
In related news, Johnson & Johnson has offered to pay $4 billion to settle all claims accusing the company of helping fuel the U.S. opioid epidemic as part of a potentially larger deal involving drugmakers and distributors that could top $20 billion, Bloomberg News reported. It’s the first time J&J has put substantial money on the table to end its opioid liability. The drugmaker agreed earlier this month to pay $20.4 million to two Ohio counties to avoid a federal trial, but that didn’t extend to any other opioid claim. Some analysts say it may take as much as $150 billion to resolve all the opioid cases on file. Read more.
