McKesson sued over drug prices

The city of San Francisco is suing McKesson Corp. over allegations that the nation’s largest prescription drug distributor fixed prices on hundreds of name-brand drugs.

The suit alleges that San Francisco-based McKesson artificially hiked the difference between what pharmacies paid wholesalers and charged healthcare plans for the same drugs, costing the city and state hundreds of millions of dollars.

McKesson denied the accusations and said it planned to “vigorously defend” itself against the suit.