SHERIDAN, WYOMING – November 10, 2024 – Cardinal Health today issued a comprehensive overview of its Board of Directors’ engagement and governance related to the ongoing opioid crisis. The company underscored its commitment to addressing the epidemic’s impact and highlighted its multi-faceted approach to combating opioid misuse.
“Our Board of Directors and the entire Cardinal Health team care deeply about the devastation this epidemic of opioid misuse has caused families and communities,” the company stated. “We are proud of our work alongside others across the pharmaceutical supply chain to help address this complex national public health crisis.”
Cardinal Health acknowledged the profound impact of the opioid crisis on individuals and communities, stating, “Like so many others across this nation, we have family members, friends, and colleagues who have been impacted by the devastating consequences of opioid overuse and abuse. We also have family members, friends and colleagues who rely on these medications to address suffering associated with terminal illnesses, painful neurological conditions, severe injuries, and recovery from surgeries.”
As a pharmaceutical wholesale distributor, Cardinal Health plays a crucial role in the pharmaceutical supply chain. The company emphasized its commitment to maintaining a secure channel for medication delivery while diligently monitoring and reporting any suspicious orders of controlled substances.
“We work diligently to identify, stop, and report to regulators any suspicious orders of controlled substances, and we understand and take seriously our responsibility to maintain a rigorous controlled substance monitoring program while ensuring that prescription medications are available for patients who need them,” the company asserted.
Cardinal Health highlighted the complexity of the opioid epidemic, recognizing the involvement of various stakeholders, including healthcare providers, regulators, manufacturers, pharmacists, patients, and law enforcement. The company stressed the importance of collective action in combating the crisis and underscored its leadership in implementing advanced controls to prevent drug diversion.
“The opioid epidemic is a serious, complex, and multi-faceted problem that involves prescribing healthcare providers, federal and state regulators, manufacturers, pharmacists, patients, and law enforcement, particularly with respect to the ever-changing methods of drug diversion and abuse,” the company stated. “We believe all participants must be active in combating this epidemic, and as discussed below, we are industry leaders in implementing state-of-the-art controls to combat the diversion of pain medications from legitimate uses.”
The company detailed its Board’s engagement and oversight of opioid-related issues, including:
National Opioid Litigation Settlement: Cardinal Health and two other national distributors reached a comprehensive agreement to settle the vast majority of opioid lawsuits filed by state and local governmental entities. The settlement will provide up to approximately $20.3 billion to communities across the United States, payable over 18 years.
Board Governance Structure: The Board and its committees regularly review the company’s controlled substance monitoring program and compliance program.
Ad Hoc Committee: An independent Ad Hoc Committee of the Board was formed in 2018 to assist with oversight of opioid-related matters. The committee was responsible for engaging with management, providing advice, and making recommendations to the full Board.
Controlled Substance Monitoring Program: Cardinal Health maintains a constantly evolving controlled substance monitoring program to address new challenges. The program is overseen by the Risk Oversight Committee.
Special Committee Investigation: In response to a shareholder demand, an independent committee of the Board conducted reviews of the company’s opioid anti-diversion program between 2012 and 2014. The committee found that Cardinal Health had implemented and maintained a robust system of controls.
Cardinal Health emphasized its commitment to transparency and accountability in addressing the opioid crisis. The company stated, “We believe that transparency and accountability are essential for building trust and demonstrating our commitment to responsible corporate citizenship.”
The company also highlighted its ongoing efforts to combat the opioid epidemic, including:
Collaboration with stakeholders: Cardinal Health actively collaborates with healthcare providers, regulators, and other stakeholders to develop and implement solutions to address the opioid crisis.