In response to investor concern, Cardinal Health announced actions it has taken to strengthen its anti-diversion tactics and accountability related to the opioid crisis.
The move is part of an agreement reached after investors filed a resolution that would have required the opioid distributor to divulge measures it has taken since 2012 to more effectively monitor and manage the financial and reputational risks it faced related to the opioid epidemic. Investors dropped the resolution after securing the deal.
In February, Cardinal Health established an ad hoc committee of independent directors to evaluate opioid business risks and the company promised regular reports on measures it’s taking to limit risks. It also agreed to provide reports of two board investigations into alleged oversight failures related to the company’s opioid distribution.