Shares of four major drug companies bounced around Monday as investors digested news of a pending settlement with a pair of hard-hit Ohio counties behind a multibillion-dollar opioid abuse lawsuit.
Teva Pharmaceutical (TEVA) - Get Report , AmerisourceBergen (ABC) - Get Report , Cardinal Health (CAH) - Get Report and McKesson (MCK) - Get Report have reached a settlement with Cuyahoga and Summit counties over allegations the companies played a major role in fueling the opioid crisis, The Wall Street Journal reported.
The settlement is worth $260 million, with AmerisourceBergen, McKesson and Cardinal slated to pay the largest share, or $215 million, while Israel-based Teva will shell out $20 million in cash over two years while donating $25 million in drugs used to fight opioid addiction, the Journal reported.
The deal came as the major opioid producers faced the start of a federal trial in Cleveland, which had been slated to kick off Monday.
McKesson's stock price fell 4.44% to $145.50, while shares AmerisourceBergen and and Cardinal Health edged down.
Shares of Walgreens also dropped, falling 1.39% to $54.53.
Teva's stock price was the sole gainer, rising 3.94% to $7.80.
Several other companies already struck deals with the two Ohio counties, including OxyContin maker Purdue Pharma, which inked a $12 billion settlement.