CARDINAL

Several class actions are each counted as a single lawsuit in the tally. This includes about 300 suits that have been consolidated in a Cleveland court under U. S. District Judge Dan Polster, who has ordered parties to hold settlement talks and report on their progress at a hearing in early March.

The number of suits continues to escalate as local governments are hit with the costs of responding to and combating opioid abuse and overdoses.

The city of Columbus and Franklin County have both recently announced plans to join the growing number of municipalities and states that have sued.

The vast majority of suits have been brought by local governments.

There also have been suits from two state attorneys general — many more are investigating distributors, but have not sued — and about two dozen “union and other health and welfare funds and hospital systems and other health-care providers,” according to Cardinal’s filing with the SEC.

The suits generally name Cardinal along with AmerisourceBergen and McKesson.

Also targeted are the manufacturers of opioid painkillers, including Purdue Pharma, Endo Health Solutions and Allergan. The state of Ohio sued the drug makers last year, but has not sued distributors.

Cardinal said 39 state attorneys general have requested information as part of an investigation into the distributors.

Cardinal’s new CEO, Mike Kaufmann, told those at an investor conference in San Francisco last month that Cardinal might be willing to settle opioid suits at some point “if it’s a more potentially efficient way to go.”

While the industry keeps an eye on Amazon, reports surfaced Tuesday that Walgreens Boots Alliance Inc., operator of the Walgreens drugstore chain, is interested in buying AmerisourceBergen. The Wall Street Journal was first to report the news on Monday evening, citing anonymous sources.

Walgreens already owns about 26 percent of the company, according to data provider FactSet.

Jefferies analyst

The city of Columbus and Franklin County have both recently announced plans to join the growing number of municipalities and states that have sued.

Brian Tanquilut said in a research note that he sees a financial case for buying the rest of AmerisourceBergen, but the strategic rationale is “a bit of a head-scratcher” since Walgreens already has a purchasing deal with Amerisource.

Observers say one reason such a tie-up might make sense is to compete with Amazon should it follow through on its rumored interest in getting into the business of distributing drugs and medical products.

That possibility drove down shares of Cardinal Health, which fell 3.4 percent, and McKesson (down 1.9 percent) as it resurfaced again in media reports Tuesday. AmerisourceBergen shares rose 9.3 percent on rumors of the Walgreens deal.

A Cardinal spokeswoman declined to comment on the Amazon reports.

At the investor conference, Kaufmann expressed confidence that Cardinal is wellpositioned to compete with Amazon, since its size and scope would give it a continued price advantage over new entrants.

Cardinal’s prices to health-care providers today are “significantly, and I mean significantly, lower than what else is out there,” Kaufmann said. He added that Cardinal’s sheer size and range of products would provide it an edge, along with its well-developed overseas business.