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Baltimore City accepts $152 million jury award in litigation against opioid distributors
Baltimore City accepts $152 million jury award in litigation against opioid distributors

CBS News

time4 days ago

  • Business
  • CBS News

Baltimore City accepts $152 million jury award in litigation against opioid distributors

Baltimore City has accepted a $152 million jury award in its litigation against two pharmaceutical companies -- McKesson and AmerisourceBergen -- for their role in the city's opioid crisis. City leaders were initially told by a judge that the original settlement awarded by a jury was too high and the city would either have to accept a reduced settlement or go back to trial. According to our media partners, The Baltimore Banner, a jury of city residents issued a massive $266 million verdict against the drug distributors, following a seven-week trial in 2024. However, the judge ruled in June 2025 that Baltimore City could accept a reduced settlement of $52 million, plus an additional abatement of $100 million, which would amend the impacts of the opioid crisis. "From the beginning, this case has always been about securing justice for Baltimoreans who have been disproportionately impacted by the opioid crisis," Baltimore Mayor Brandon Scott said. "Today's decision is an affirmation of these companies' liability, and the fulfillment of a promise kept to our residents. " Mayor Scott continued, "While this amount is lower than the jury awarded us, this award still dwarfs the original amount the City would have received, had we not brought this separate litigation on behalf of our city." This award, combined with the other settlements, brings the total amount the city has won from pharmaceutical companies to nearly $580 million. The city accused the drug distributors of contributing to the opioid crisis by failing to monitor and stop suspiciously large orders of opioid painkillers to Baltimore pharmacies. The Banner also reports that federal drug dispensing data shows the two companies supplied about 60% of the half a billion opioids that flooded Baltimore and Baltimore County between 2006 and 2019. A June 2024 report published by the Baltimore Banner and the New York Times found that the death toll from opioid deaths among residents reached more than 6,000 over the past six years – more than double that of any other large U.S. city. Baltimore Mayor Brandon Scott recently unveiled the city's preliminary overdose response strategic plan. The plan is part of an executive order detailing how the city will spend $242.5 million in settlement funds won in a lawsuit against multiple pharmaceutical companies. In August 2024, Baltimore Mayor Brandon Scott outlined an executive order that specified how the funds would be used. According to the mayor, the goals of the city's preliminary plan include addressing inequities in the overdose crisis, dismantling silos and improving connections within care systems, reducing the stigma surrounding care, and improving the quality and accessibility of substance use services across the city. The executive order established the Baltimore City Opioid Restitution Fund. It also created two new positions to oversee the use of the settlement money and required that the city publish an overdose reduction strategy. The fund will be managed in an account separate from the general fund so that the money is not misappropriated. "Generations of Baltimoreans have lost loved ones to substance use as a direct result of the opioids that Big Pharma pushed on our neighborhoods," Mayor Scott said in a statement. "While no amount of money can ever undo that harm, this award will help us expand our recovery programs, prevent future overdose deaths, and finally break the cycle of substance abuse in Baltimore." Baltimore City recently held a series of public discussions to get community feedback on the overdose reduction plan. Baltimore residents shared stories of how the opioid crisis and overdoses impacted them. "I lost my mother in 2016 to a fentanyl overdose, and I suffered from substance use until I got clean," Baltimore resident Donald Young said. "We need to see more efforts like this at the prevention and not wait until there's a mass overdose." On July 10, 27 people were hospitalized after overdosing in Baltimore's Penn North neighborhood Community groups handed out Narcan and other resources to those who were impacted. WJZ got a tour of the Tuerk House in West Baltimore, where some of the survivors of the mass overdose went for treatment. The survivors were referred to the Tuerk House by local hospitals in the immediate aftermath of the mass overdose. Their rooms are quiet and clinical, yet full of support, with 24-hour nursing staff and access to individual counseling. "One is downstairs and one is right here in this room," said Dr. Pierre Thomas. "We have a 50-year-old male patient who came here from the hospital. He's getting his detox. He has a full shower, we have providers, and peer support."

Baltimore City considers new trial or reduced settlement in opioid case
Baltimore City considers new trial or reduced settlement in opioid case

CBS News

time09-08-2025

  • CBS News

Baltimore City considers new trial or reduced settlement in opioid case

Baltimore city leaders still have not decided whether they will accept a reduced settlement in the case against two major drug companies, despite an August 8th, 2025, deadline given by a Baltimore City judge. It comes after a jury ruled against the two major drug companies, McKesson and AmerisourceBergen, blaming them in large part for the opioid crisis in our city. According to our media partners at the Baltimore Banner, federal drug dispensing data shows the two companies supplied about 60% of the half a billion opioids that flooded Baltimore and Baltimore County between 2006 and 2019. A jury ruled that the two companies contributed to the opioid crisis, punishable by a $266 million settlement. A judge later ruled the jury put too much blame on the companies, and reduced that settlement by about 80 percent, down to $52 million. The city has already reached settlements from other companies totaling $402.5 million, money that has been placed into a restitution fund to fight the crisis. In a July 29th public safety committee hearing, Baltimore City Council member Mark Conway said, "I believe that it is integral to the success of our city on this issue to talk about it openly. That we get folks out of the shadows and some of the difficulties and shames that come with addiction to talk about what we're experiencing in our city, if we're ever to reduce first, the number of people that are overdosing and dying. But then also to break the cycle of addiction." The other option given by the judge is for the city to opt for a new trial. A statement put out by Baltimore Mayor Brandon Scott in June reads in part, "As the only municipality in the country to secure verdicts against these two companies, which were responsible for the bulk of the opioids flooding into Baltimore, we will continue to fight — just as we have fought for our city every step of the way through this litigation process." "We have received the court's abatement ruling and are considering all options at this time," the mayor's office wrote in a statement. "We remain committed to securing justice for all Baltimore residents disproportionately impacted by the opioids crisis. We will respond in due time in the appropriate judicial forum."

McKesson Corporation (MCK): A Bull Case Theory
McKesson Corporation (MCK): A Bull Case Theory

Yahoo

time05-08-2025

  • Business
  • Yahoo

McKesson Corporation (MCK): A Bull Case Theory

We came across a bullish thesis on McKesson Corporation on The Buyside Guy's Substack. In this article, we will summarize the bulls' thesis on MCK. McKesson Corporation's share was trading at $710.94 as of August 4th. MCK's trailing and forward P/E were 27.17 and 18.69, respectively according to Yahoo Finance. A successful pharmacist in front of shelves of drugs in a community-based oncology pharmacy. McKesson (MCK) is one of the largest pharmaceutical distributors in the U.S., moving nearly a third of all prescription drugs across North America and controlling 38.1% of the U.S. distribution market alongside AmerisourceBergen and Cardinal Health. Acting as the infrastructure layer of the healthcare system, McKesson provides logistics, inventory management, credit risk handling, and compliance, operating on razor-thin margins that make the business highly defensible and nearly impossible for new entrants. Even retail giants like CVS and Walgreens depend on its efficiency, with most pharmacy orders fulfilled within 24 hours. Its moat lies in compliance—McKesson must meet stringent DEA and DSCSA requirements, tracking every pill through the supply chain, which creates significant barriers to entry and customer stickiness. The business model is stable: branded drugs generate fixed fees per unit, insulating earnings from price swings, while generics—though lower revenue—deliver higher margins and account for about 29% of operating profit. Customer concentration is notable, with CVS and Walmart together contributing roughly 14% of operating income. While McKesson trades defensively during market volatility, short-term earnings misses can pressure the stock. A key catalyst is the planned spin-off of its Medical-Surgical segment, which has higher margins (8–10%) but adds volatility; separation could unlock valuation clarity and upside. Currently, McKesson trades at 17.8x FY'26 EPS, above its 10-year average of ~14.5x, reflecting strong fundamentals like a 17% five-year EPS CAGR and 7% buyback CAGR. Though not cheap today, a pullback to $550–$600 could offer an attractive entry point into this essential, scale-driven business. Previously, we covered a bullish thesis on Quipt Home Medical Corp. (QIPT) by Inflexio Research in March 2025, which highlighted its recurring revenue base, activist involvement, and buyout potential. The stock has appreciated about 4.78% since then as recovery signs emerged. The thesis still stands with strategic catalysts intact. The Buyside Guy shares a similar view on defensiveness but emphasizes McKesson's scale, compliance moat, and Med-Surg spin-off catalyst. McKesson Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held MCK at the end of the first quarter which was 78 in the previous quarter. While we acknowledge the potential of MCK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.

Profits rise at BluePoint Pharmaceuticals but Cork firm warns of impact of tariffs
Profits rise at BluePoint Pharmaceuticals but Cork firm warns of impact of tariffs

Irish Times

time05-07-2025

  • Business
  • Irish Times

Profits rise at BluePoint Pharmaceuticals but Cork firm warns of impact of tariffs

Cork-based pharmaceutical company BluePoint Pharmaceuticals has recorded post-tax profit of $12 million (€10.2 million) from its Irish operations and paid a $25 million dividend but warned that 'geopolitical risks' could impact its operations. Turnover at the Little Island firm grew to $218.66 million in the year ending September 2024, according to recently filed accounts with the Companies Registration Office. Turnover grew by just less than $650,000 in 2024, but this came after a $38 million increase in turnover in 2023 to $218.01 million. The company is ultimately owned by one of the largest pharmaceutical companies in the world, New York-listed Cencora Inc, formerly known as AmerisourceBergen Corporation. The parent company reported global turnover in 2024 of $294 billion. READ MORE With a US-based parent company, the company warned that US import tariffs post a risk to its operations noting the economic measures could affect its input costs or have 'adverse impacts' on demand for its products and supply chains. The company's directors warned that, among other factors, the uncertainty around the impact of tariffs, market volatility and 'slower economic growth or recession' could impact the business in 2025. Gross profits widened slightly in 2024 as costs of sales decreased but distribution and administrative expenses cut back pretax profits to within $50,000 of 2023. The company paid $1.83 million in tax in the financial year, compared with $1.94 million the year prior. Post-tax profits grew from $12.232 million in 2023, to $12.379 million in 2024. HP Pharmaceuticals Unlimited paid a $25 million dividend to shareholders, having not proposed a dividend since it made a $17 million shareholder payout in 2022. Staffing at the Cork business remained static at 36 in the period, though total payroll costs increased from $4.7 million in 2023, to $5.5 million in 2024, primarily driven by overall wages and salaries increasing by 17 per cent. Salary paid to directors stood at $513,000.

Baltimore judge proposes slashing city's $266 million opioid verdict or new trial
Baltimore judge proposes slashing city's $266 million opioid verdict or new trial

CBS News

time13-06-2025

  • Business
  • CBS News

Baltimore judge proposes slashing city's $266 million opioid verdict or new trial

A Baltimore judge on Thursday proposed reducing the city's $266 million settlement from a verdict against two drug distributors, suggesting that the companies pay just under $52 million or receive a new trial to determine damages. In a 96-page ruling, Baltimore City Circuit Judge Lawrence Fletcher-Hill agreed with the companies, McKesson and AmerisourceBergen, that the jury's award was too high and that jurors attributed too much blame to the companies for the opioid crisis. "This decision is disappointing to say the least. We are evaluating the decision and considering all of our options," Scott said in a statement. "While the court acknowledged that the City proved that McKesson and AmerisourceBergen were liable for the City's opioid crisis, we are disappointed that the court abandoned the remainder of the findings of the jury, which carefully reviewed this case over nearly two months last year." Baltimore City awarded millions after litigation with pharmaceutical companies The city began litigation against pharmaceutical manufacturers and distributors for their role in the opioid epidemic in 2018, opting out of a global settlement in order to pursue more restitution money. Public health experts said that the crisis began because of the availability of prescription opioids, which led residents to turn to illicit drugs. Throughout 2024, the city reached settlements with several large companies including Allergan, CVS, Teva, Cardinal Health, and Walgreens, bringing total recoveries to $402.5 million by September 2024. In Nov. 2024, a Baltimore jury found McKesson and AmerisourceBergen liable in Baltimore's opioid epidemic and awarded the City of Baltimore more than $266 million in damages. A month later, the city began working with the Board of Estimates and City Council to come up with a plan for using the restitution funds. The plan included administrative and oversight costs, funding for health department and recovery programs, community engagement, and planning for the replacement of the Druid Health Clinic. Opioid crisis in Baltimore A June 2024 report published by the Baltimore Banner and New York Times found that the death toll from opioid deaths among residents reached more than 6,000 over the past six years – more than double that of any other large U.S. city. The report also found that the opioid crisis in Baltimore disproportionately impacted Black residents, particularly those aged 55 to 70. Then, community members accused the city of failing to prioritize the needs of Black communities affected by the opioid epidemic.

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