Shares of the companies embroiled in opioid litigation fell in afternoon trading after The Wall Street Journal reported the federal government had opened a criminal investigation into some opioid makers and distributors, citing sources. Six companies have disclosed in regulatory filings that they have received grand-jury subpoenas from the U.S. attorney's office in the Eastern District of New York, according to the report. Teva Pharmaceutical Industries Ltd. /zigman2/quotes/205657894/composite TEVA +3.45% is down 8%, Mallinckrodt /zigman2/quotes/209283217/composite MNK -5.56% 5%, Amneal Pharmaceuticals Inc. /zigman2/quotes/209301288/composite AMRX -5.90% 10%, and Johnson & Johnson /zigman2/quotes/201724570/composite JNJ +0.77% 1%. Shares of cited wholesale drug distributors also declined, AmerisourceBergen /zigman2/quotes/201066379/composite ABC -3.04% by 3% and McKesson /zigman2/quotes/206975466/composite MCK -2.87% by 5%. In addition, shares of companies facing opioid litigation but not cited in the Journal story also dropped, with Endo International /zigman2/quotes/207745412/composite ENDP +2.91% down 9% and Cardinal Health /zigman2/quotes/206646342/composite CAH +0.41% 4%. In recent weeks, the stocks of these companies have rallied as investors took the view that the possibility of global settlement that would resolve all pending and future litigation was a positive.
Read the full story:
Stocks inch higher, S&P 500, Nasdaq look to set 10th record close of November