Department of Justice begins new crackdown on Pharma firms to combat opioid crisis – healthcare stocks in focus
Jeff Sessions is spearheading a fresh approach to the opioid crisis
In a move that may put more pressure on pharmaceutical stocks, the Department of Justice in the U.S. is cracking down on the opioid crisis with a “Prescription Interdiction and Litigation Task Force” that will target drug manufacturers.
In reference to the actions the DoJ intends to take, Attorney General Jeff Sessions (pictured) said: “We will use criminal penalties, we will use civil penalties. We will use whatever laws and tools we have to hold people accountable.”
The DoJ is also backing up major lawsuits brought against companies including Johnson & Johnson, CVS, Cardinal Health, McKesson and Teva Pharmaceuticals by hundreds of cities, states and local governments. Investors with an interest in the healthcare sector should keep an eye on the share prices of these businesses in the weeks ahead! Several high profile drugmakers including Purdue Pharma already stopped promoting the drugs in light of the epidemic.
The move from the Trump administration is the latest major advancement in tackling America’s opioid health crisis. Back in January New York City sued 8 major pharmaceutical companies which manufacture prescription painkillers, with Mayor Bill de Blasio saying the lawsuit sought $500 million in damages to combat a problem which is responsible for more American deaths on an annual basis than homicides and car accidents combined.
The crisis became a public health emergency in October last year.
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