The lawsuits againstdrugmakers and distributors have opened up the potential forbillions of dollars in liabilities as governments grapple withmounting human and financial costs of the opioid epidemic. (Photo:Shutterstock)

Oxycontin-maker Purdue Pharma LP is preparing for a possiblebankruptcy filing as it faces hundreds of lawsuits over its role inthe U.S. opioid epidemic, Reuters and the Wall Street Journal reported Monday.

The drugmaker has hired advisers to prepare for a potentialfiling, the Journal said, citing people familiar with the matter.Bankruptcy would let the company negotiate claims with some of themore than 1,500 cities, states, local governments and otherentities that have sued Purdue and other health companies overtheir roles in the opioid epidemic.

Purdue spokesman Robert Josephson declined to comment on thereports.

“We are, however, committed to ensuring that our businessremains strong and sustainable,” Josephson said in an email. “Wehave ample liquidity and remain committed to meeting ourobligations to the patients who benefit from our medicines, oursuppliers and other business partners.”

The lawsuits against drugmakers and distributors have opened upthe potential for billions of dollars in liabilities as governmentsgrapple with mounting human and financial costs of the opioidepidemic.

More than 700,000 people in the U.S. died from drug overdosesfrom 1999 to 2017, according to the Centers for Disease Control andPrevention, and more than two-thirds of those were opioid-related.While the epidemic of addiction and death began with prescriptionpills marketed by Purdue and other drug companies, it has shiftedto include heroin and synthetic compounds like fentanyl.

Purdue and other drugmakers have said they didn't act improperlyin marketing their medicines.

Shares of other companies named in the lawsuits fell after thereports. Drugmaker Endo International Plc was down as much as 15percent, and Mallinckrodt Plc fell as much as 6.7 percent. Drugdistributors AmerisourceBergen Corp., Cardinal Health Corp. andMcKesson Corp. also fell.

Read more about the fall of PurduePharma: 

• New lawsuit unveils scope of Purdue's'extraordinary efforts' to push opioids
• Purdue brings in “Turnaround Kid” to overhaulimage
• New Jersey joins states suing Purdue Pharma foropioid marketing

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