McKesson settles with DEA, US attorneys over distribution

SAN FRANCISCO -- McKesson Corp., the nation's largest U.S. pharmaceutical distributor, said Friday it had reached a settlement with the Drug Enforcement Administration and six U.S. attorneys' offices over its distribution of controlled substances.

McKesson will also pay $13.3 million to the U.S. attorneys' offices to drop financial claims against the company, which denies any wrongdoing. A legal fund was set aside by the company in January for the amount and no additional financial impact is expected.

The agreement, which also clears all DEA claims against the company, calls for a temporary halt of the shipment of the pain killer hydrocodone and tranquilizer Xanax from two of its 31 distribution centers. McKesson said that customers normally served by those facilities will get the two drugs form its other distribution centers.

McKesson will also improve its monitoring of orders for controlled substances.

"While we believe that our policies and procedures complied with all applicable laws and regulations, we chose to resolve these matters in collaboration with the federal agencies rather than in the courts to remove any uncertainty and ensure that our customers -- America's retail pharmacies, hospitals and other care facilities -- continue to receive their vital medicines safe and on time," McKesson U.S. Pharmaceutical President John Figueroa said in a statement.

Shares of McKesson rose 43 cents to $54.27 in afternoon trading.