McKesson, Cardinal Health, AmerisourceBergen Shares Rise After $1.1 Billion Opioid Settlement With NY AG

Shares of McKesson Corp. mck,
Cardinal Health Inc. CAH,
and Amerisource Bergen Corp. ABC,
all rose more than 4% in morning trade Tuesday, after New York Attorney General Letitia James announced a $1.1 billion settlement agreement with the drug distributors to fight the opioid epidemic. James said the agreement resolves claims for the companies’ role in fueling the epidemic and will remove the companies from the ongoing opioid trial. As part of the agreement, the company will pay up to $1.18 billion in total, of which more than $1 billion will be spent on abatement, with payments commencing in two months and continuing over the next 17 years. Shares of McKesson are now up 14.5% so far, Cardinal Health is up 10.1% and AmerisourceBergen is up 20.3%, while the S&P 500 SPX,
has improved by 13.9%.