Under the new proposal, McKessons’s share of the settlements could be $8 billion. Rivals AmerisourceBergen (NYSE:ABC) and Cardinal Health (NYSE:CAH) would pay the remainder to settle some 3,200 lawsuits.
The company’s stock, however, ticked up 5.25% to $160.01 late yesterday based on the company’s role in distributing COVID-19 vaccine kits. McKesson has struck a deal with the U.S. Department of Health and Human Services to enable a mass vaccination effort. McKesson will also serve as a distributor for COVID-19 vaccines in a contract with the U.S. Centers for Disease Control and Prevention.
In terms of the proposed opioid resolution, the $8 billion amount would be an increase over a prior proposal that would have had McKesson pay $6.68 billion over 18 years.
The details of the proposal could change in further negotiations. McKesson said it “has not reached a point where settlement is probable,” according to Reuters.
In related news, the U.S. Department of Justice announced a roughly $8 billion resolution with Purdue Pharma for its role in the U.S. opioid crisis. The company has filed for bankruptcy protection.