Distributors Announce Extension of Opioid Settlement Sign-On Period, Participation of New Mexico

Rhea-AI Summary

AmerisourceBergen (ABC), Cardinal Health (CAH), and McKesson (MCK) have extended the deadline for political subdivisions to join the proposed opioid settlement from January 2, 2022, to January 26, 2022. New Mexico confirmed its participation, raising total states in the settlement to 43, covering all U.S. territories and Washington, D.C. The deadline to assess sufficient participation has also been moved from February 1, 2022, to February 25, 2022. The companies aim to expedite relief to affected communities and remain committed to addressing the opioid crisis.

Positive

• Extension of participation deadline to January 26, 2022, allows more political subdivisions to join the settlement.
• Increased participation with New Mexico confirming intent to join, bringing total to 43 states and all U.S. territories.

Negative

• Ongoing legal disputes regarding opioids distribution remain a risk for the companies.
• Future settlements may not resolve all claims against the companies.

CONSHOHOCKEN, Pa. & DUBLIN, Ohio & IRVING, Texas--(BUSINESS WIRE)-- AmerisourceBergen (NYSE: ABC), Cardinal Health (NYSE: CAH) and McKesson (NYSE: MCK) announced today that the deadline for political subdivisions in participating states to join the previously announced proposed opioid settlement agreement has been extended from January 2, 2022 to January 26, 2022. Additionally, the state of New Mexico has confirmed its intent to sign on the agreement, increasing the number of participating states as of December 22, 2021, to 43 out of 49 states, all 5 U.S. territories and Washington, D.C. Participation in the settlement process will expedite the delivery of meaningful relief to affected communities and allow the companies to focus their attention and resources on the safe and secure delivery of medications and therapies nationwide.

Consistent with the process laid out in the proposed settlement agreement, after the conclusion of the political subdivision sign-on period, participating states have an opportunity to determine whether there is sufficient participation in the settlement by political subdivisions to proceed to implementation. Following the notice from the participating states, each company will independently determine whether a sufficient number of political subdivisions have joined for the settlement to proceed to implementation. The deadline for that decision has been extended from February 1, 2022 to February 25, 2022.

The distributors remain deeply concerned about the impact the opioid epidemic is having on communities across the nation and remain committed to being part of the solution.

Cautionary Statements Regarding Forward Looking Statements

The preceding descriptions of a potential resolution of certain governmental entities’ opioids-related claims against pharmaceutical distribution companies constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve risks and uncertainties that could cause actual results to differ materially from those in those statements. It is not possible to identify all such risks and uncertainties. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are first made. Except to the extent required by law, the companies undertake no obligation to publicly update forward-looking statements. Risk factors include, but are not limited to: the settlement process may not result in a resolution of all or any claims against each company regarding its role in distributing opioids; the companies may continue to experience costly and disruptive legal disputes and settlements related to distribution of controlled substances, including opioids; the companies might experience losses not covered by insurance; and the companies might be adversely impacted by changes in tax legislation or challenges to their respective tax positions. Investors should read the important risk factors described in each company’s Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission.

About AmerisourceBergen

AmerisourceBergen fosters a positive impact on the health of people and communities around the world by advancing the development and delivery of pharmaceuticals and healthcare products. As a leading global healthcare company, with a foundation in pharmaceutical distribution and solutions for manufacturers, pharmacies and providers, we create unparalleled access, efficiency and reliability for human and animal health. Our 42,000 global team members power our purpose: We are united in our responsibility to create healthier futures. AmerisourceBergen is ranked #8 on the Fortune 500 with more than $200 billion in annual revenue. Learn more at investor.amerisourcebergen.com.

About Cardinal Health

Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities. With 50 years in business, operations in more than 40 countries and approximately 48,000 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

About McKesson Corporation

McKesson Corporation is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information solutions. McKesson partners with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare to help provide the right medicines, medical products and healthcare services to the right patients at the right time, safely and cost-effectively. United by our ICARE shared principles, our employees work every day to innovate and deliver opportunities that make our customers and partners more successful - all for the better health of patients. McKesson has been named a “Most Admired Company” in the healthcare wholesaler category by FORTUNE, a “Best Place to Work” by the Human Rights Campaign Foundation, and a top military-friendly company by Military Friendly. For more information, visit www.mckesson.com.

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AmerisourceBergen

Investor Contact:

Bennett S. Murphy

610-727-3693

bmurphy@amerisourcebergen.com

Media Contact:

Gabe Weissman

610-727-3696

gweissman@amerisourcebergen.com

Cardinal Health

Investor Contact:

Kevin Moran

614-757-7942

kevin.moran@cardinalhealth.com

Media Contact:

Erich Timmerman

847-887-1487

Erich.Timmerman@cardinalhealth.com

McKesson

Investor Contact:

Rachel Rodriguez

469.260.0566

Rachel.Rodriguez@McKesson.com

Media Contact:

Sunny Rodriguez

972.589.4307

Sunny.Rodriguez@McKesson.com

Source: AmerisourceBergen

FAQ

What is the new deadline for opioid settlement participation for ABC, CAH, and MCK?

The deadline for political subdivisions to join the opioid settlement has been extended to January 26, 2022.

How many states are participating in the opioid settlement for AmerisourceBergen, Cardinal Health, and McKesson?

Currently, 43 states, all U.S. territories, and Washington, D.C. are participating in the opioid settlement.

What are the implications of the opioid settlement for ABC, CAH, and MCK?

The settlement aims to deliver relief to communities affected by the opioid crisis but poses ongoing legal risks for the companies.

When is the new assessment deadline for the opioid settlement participation?

The new deadline to assess sufficient participation in the settlement is February 25, 2022.