Drugstore, pharma paper mixed following opioid deal; Rite Aid lower; Endo, Bausch up

By Cristal Cody

Tupelo, Miss., Nov. 2 – Distressed pharmaceutical paper went out mixed on Wednesday following new opioid-related settlements with CVS Health Corp. and Walgreens Boots Alliance, Inc.

CVS said it agreed to pay approximately $5 billion over the next 10 years to substantially resolve all opioid lawsuits and claims against the company by U.S. states, cities, counties and tribes.

Walgreens reported it expects to settle all opioid claims against it by states, subdivision and tribes for up to approximately $4.95 billion to be paid over 15 years.

Drugstore chain Rite Aid Corp.’s 8% senior secured notes due 2026 (B3/CCC-/BB-) traded down 2 1/8 points on Wednesday to 62¼ bid, a source said.

Meanwhile, bankrupt pharmaceutical manufacturer Endo International plc’s 9½% bonds due 2027 were on the move higher by about 1 point to 1¼ points, going out at the upper end of gains at 10¾ bid, a source said.

Endo filed for Chapter 11 bankruptcy in August following missed note payments and several opioid-related lawsuit settlements.

Pharmaceutical company Bausch Health Cos. Inc.’s 5% senior notes due 2029 (Ca/CCC/CC) also improved ¼ point in mostly thin trading on Wednesday, a source said.

The bonds were quoted at 39¼ bid.

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