Good morning and welcome to October. Elizabeth Cooney sitting in for Ed Silverman again today from STAT in Boston, where just the hint of crisp fall air gladdens the hearts of runners and others who wilt in summer heat. But enough with the weather and on with the news:
Endo International, Johnson & Johnson, and other drug makers that face sprawling litigation over the opioid crisis are exploring an unusual way to settle the cases: by participating in Purdue Pharma’s bankruptcy, the Wall Street Journal reports, according to internal documents and a person familiar with the matter. The move, if successful, could bring an end to — or at least dramatically shrink — one of the largest and most complex pieces of litigation the U.S. has ever seen.
Mallinckrodt recently changed its severance-package policy to allow departing executives of the drug company to receive lump-sum payouts instead of installment payments, ensuring the policy endures should it change ownership structure, such as liquidating or reorganizing, the Wall Street Journal says in a related story. The drug maker, whose stock is down some 90% this year, is trying to resolve thousands of lawsuits over its alleged role in helping spark the nation’s opioid crisis.