none. >> whitaker: did mckesson know this, or-- or should mckesson have known this?: absolutely. it was their customer. they were supplying it. it was just outrageous. they were turning a blind eye to the very problem that we were trying to address. >> whitaker: kaupang said to get around reporting suspiciously large orders, at the time, mckesson would simply raise the limit a pharmacy was allowed. no order, no matter how large, was ever reported as suspicious. they would set a threshold. and if they surpass their own threshold-- >> kaupang: yes. >> whitaker: --they would just bump up the threshold to meet this new higher number? >> kaupang: yes. >> whitaker: so they rigged the system. >> schiller: absolutely. absolutely. >> whitaker: and to be clear here, we're talking addictive opioids. >> schiller: highly addictive. oxycodone and hydrocodone in particular. that's what we're talking about. the most commonly prescribed and abused controlled substances in the united states. >> whitaker: mckesson would say they're just supplying the doctors and the pharmacies. they're

now you're back talking about the dea and mckesson. what is the accusation?rug distributors like mckesson report what they calus orders. these are orders that are unusually large or of unusual frequency, and back in 2008 mckesson paid a -- more than $13 million in a settlement because the dea said they were sending huge numbers of suspicious orders around the country. shortly after they signed that settlement, dea investigators saw mckesson doing pretty much the same thing, sending thousands and thousands and thousands of suspicious orders around the country. and they said that since this was the second time that they found the company doing it, they wanted to come down hard on them. they wanted to use them as an example to the rest of the industry. they wanted to come down hard, but the attorneys in washington, the dea attorneys in washington, they were a little more lenient, and that's what our story is about. >> lenny, why were they more lenient? where was the gap between the >> if you watch cop shows, you know the investigators are always aggressive and t

was it a motivation from mckesson?behavior, not intent. >> intent is always difficult to prove in court. that's always a stumbling block. what the investigators said and you'll see on sunday is we had intent. they knew what they were doing in a couple of cases. we can prove it. the lawyers disagreed. >> it sounds like some of the politicians felt like they were deeped by this law, including joe manchin from west virginia, a state that has a huge opoid crisis. >> that's what we found. we went down to washington and we were talking to senators there. they were saying that -- for the law that we did the first piece about, that the dea said sort of tied their hands when it came to going after these companies. the lawmakers -- it was only a three-page law. many of them said they didn't know what was in it. >> what was mckesson's response to your investigation? >> we tried to get someone from mckesson to talk to us on camera. they declined. but we spoke to the lead attorney many times through the course of this. and he basic

>> whitaker: scared of going after mckesson?: and a better word might be intimidated. >> whitaker: tonight "60 minutes" and the "washington post" break more news in our opioid investigation. >> pelley: you hated black people. >> christian picciolini: i thought i did. >> pelley: you hated jews. >> picciolini: i thought i did. >> pelley: you wanted to kill them. >> picciolini: at that t

mckesson also allegedly shirk responsibility for the growing opioid epidemic, seeing it as a matter "dressed by the federal and state governments." suits fromozens of cities and counties. israeli drugmaker teva pharmaceuticals is considering cutting 10,000 jobs or 15% of its staff. according to people familiar with the matter, they want to cut expenses by up to $2 billion in the next date of years. it has about $35 billion in debt. it's the world's biggest generic drug maker. we were just talking about president trump. he tweets that fines against wells fargo in a drug lending case -- in a mortgage lending case may be more substantial than previously thought. president trump said the fines would not be dropped. your business flash update. julia: still ahead, time for options in sight this is bloomberg. scarlet: no tweet yet. julia: no, still waiting. ♪ scarlet: it's time now for options insight. julie: joining more -- joining me what today's options insight is the chief market strategist at bullseye options. thank you for joining us. >> happy friday. julie: happy friday indeed. the so

meant long mckesson test sang it and yet i had also sweden what's your name. all the navi. know i should just do that sort of when i bought the stuff ok thank you. so many it. was brought in. the. brain. reads the. the she's living with the kids with the big. but just been so hot here i didn't find. this. love. this. summer. love big concern. was. love. her. through. her. one word consume slayer december soon the as she listens in the earth below peace is the i am. listening sung pinson assume the ending of the now been seen you believe that these are the sick in the e.u. have the supply eat. sloppy these. days the other. splog. thank you thank you thank you thank you thank you thank you thank you thank you five highest right if you have them the enemy can hit both of us what john hit the second cloud one hundred idiots who asked you here and you have all. thank you thank you thank you thank you thank you if you will hear this again it will be different words because i totally forgot the first words i swear i'm not gonna do it so that's what this is of should hear on the su

mckesson >> we've got more. dash with the man right next to me an opening bell about 90s nine minutes away stay with us on "squawk on the street." [ keyboard clacking ] [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours. talk to one today and see why we're bullish on the future. ♪ let out your inner child at the lexus december to remember sales event. lease the 2018 es 350 for $319 a month for 36 months. experience amazing at your lexus dealer. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. we cut the price of trades t

wholesaler or sell generic medications as a retailer this could disrupt the major drug distributors like mckessonnd cardinal health those stocks are been under pressure recently by the possibility of amazon entering into the distribution space. novartis, mylan and amazon have all declined to comment on the report we did see some big moves in the market after cnbc broke this news shares of mylan jumping more than 4%. still about that in early trading. shares of novartis getting a pop. up about 1% in early trading back over to you >> thank you very much i feel like amazon has not found a market it doesn't want to disrupt yet. >>> there are several economic reports on the docket. the ism manufacturing index is out at 10:00 a.m. eastern along with september construction spending november auto sales come out throughout the day dallas fed president rob kaplan, philly president harker and randy kaurl randy quaufrl ran randy quarles are also speaking today. >>> some stocks to watch are coming your way after the break. >>> and the countdown is on, 24 shopping days left until christmas. we'll tell you whic

mckesson, and he has come in and will look at the business model -- patterson has two interesting businesses that serve different markets but synergies. of they serve the digital consumable market, so if you are a dentist with the practice and you need to order equipment or consumables, rubber gloves, things like that, they have a bute market share in that, they're also any animal health market, so they serve a lot of veterinarians. theinteresting thing is veterinarians site has grown, but the dental site has not grown. so they fired the ceo several the new ceo is going to take a fresh look at the business model. i think a lot of costs can come out at patterson. more important like, what i think you might see down the line is some kind of financial engineering and a separation of the businesses. at $36, andoday is if you look at the two parts, the dental part and the animal health part and assign multiples to those pleases of the business, you could easily get a $55 stock. i think over the next 12 to try for months, there might -- 12 to 24 months, they might separate the businesses and that

in the meantime, pharmaceutical distributor mckesson is out to"y that story accuses mckesson of widelyopioid medication without doing due diligence. a substantial case was built and not sued they deny any criminal behavior and say the story was what they call sensational journalism. >>> very busy week ahead for economic data. home builders survey at 10:00 a.m. eastern tomorrow november housing starts and third quarter current account. on wednesday existing home sales. thursday the philly fed survey friday, look for durable goods, personal income and new home sales. there are a few notable names reporting earnings this week as well take a look. we have darden restaurants coming up, fed ex, micron, general mills and then joe -- i don't mean to leave becky out, bed, bath and beyond. >> kind of like you guys's thing. >> our thing to check out the vaporizers there. >> duvets. >> the heavy duvets. >> didn't you get one yet? >> is the new brita water thing out? >> got to check that out. >> what else are they selling these days that you like >> you can get a grill scraper there. >> okay. >> fo

think we're going to see it's going to trigger the disintermediation of all these middle men, the mckessonsipts and everybody else taking a chunk. i think we'll see direct shipment of drugs. so this is a big deal. and it goes far beyond the cvs/aetna merger and it's going to transform what doctors do, what nurses do, and i think where health care takes place, to get it into a lower cost community-based setting. >> wow you're really putting a lot on this deal. i mean, it's going to take time. it's going to, i guess then, bill, force others to also change their strategy? >> no doubt. by the way, the market is saying this being driven by amazon. i actually don't think that. i think amazon has to run hard to catch up. i think the real issue is united health they're a powerhouse with care mark, with optum, service over 170 million people through optum. i think you're going to see they're the ones causing a lot of change. did a deal with mayo, on the mayo board about five years ago, to create optum labs, and this through artificial intelligence, big data, but looking down to individuals. what the

. >> and you've bet against names like mckesson, drug distributors >> malencrot. >> i'm sorry names in the kidney it dialysis space, for example are there any others you would expand -- >> we've been looking at the rent-seeking companies, companies we think have existed on the periphery of the health care economy that basically have went after these pricing sort of gamesmanship models. that's over. we think as the pie shrinks, b it's going to be tougher and tougher to justify the ability of companies to hike drug prices 1,000% or charge commercial insurers five times what you charge medicare and medicaid in the case of dialysis we think that there's a number of those companies, some have already dropped, some haven't. we're still very negative on the pbm space, express scripts came out and reaffirmed guidance, raised it this morning there's no reason for independent pbms to exist, for example. >> does the cvs/aetna deal make sense to you >> i think that's -- everyone's looking at it the reverse way through the telescope. we think it's the pbm, cvs caremark because they're worried about

disrupt the drug distributor space that's dominated by amerisourcebergen and cardinal health and mckessonme is that those weren't licenses that would enable them to move into the space >> the reason companies like it because better margins for them? they don't have -- >> there are three drug distributors that dominate the market they would like to see an additional player there or potential different kind of disruption from the branded pharmaceutical sight, these are a lot of thufrms. mylan was saying yesterday that they would love to see amazon coming into the space. >> we talk about amazon betting bigger and bigger and wonder if anything that is going to draw the attention of regulators, but in this case you're talking about a situation where an additional competitor could mean lower prices for consumers >> that would be the idea. everyone expects amazon comes in and prices come down that would be the hope we really should emphasize this is early days. cnbc.com has been reporting a lot on this, but it really does seem to be quite early >> meg, thank you. zoo thank you. >>> coming up, a

blacks lives matter, ray mckesson, north korea fires a missile. keith ellison said something detrimental. kim jong-un is the seems the more responsible leader. does that really matter. we have a former, foreign advisor, date tefori, lieutenant colonel tony shaffer. does it matter to kim jong-un looks like the president's critics are questioning his sanity? >> i think so. anytime you're facing off against an adversary, especially one like un, you have to make it very clear there will be consequences to bad behavior. again we saw this during the cold war. the democrats tried the same thing with president reagan. we had to do a number of things to reinforce the fact while we did not seek war, we would go to war to defeat them. we would do it in very severe, hard way. anytime you have this leftist rhetoric which actually denies the fact we need to do this -- ted liu did something on another network hour ago reflecting this very attitude. that somehow we are not united behind the president. look, we're at war with the north koreans. that war has never