Teva could pay $3.6b to settle opioid dispute – report

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) CEO Kåre Schultz has told “Reuters” that the Israeli company could pay as much as $3.6 billion in cash and medicine to settle thousands of lawsuits alleging it and other drug companies fueled the US opioid epidemic.

Earlier this week, Teva reached a settlement worth $225 million with Texas. Teva will pay Texas $150 million over 15-years and will provide its recently launched generic Narcan (naloxone hydrochloride nasal spray) for treating opioid addiction, valued at $75 million (wholesale acquisition cost), over 10 years.

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Schultz told “Reuters” that based on that settlement, as well as a proposed nationwide settlement with three large drug distributors and drugmaker Johnson & Johnson worth $26 billion, Teva would likely pay $2.7 billion to $3.6 billion spread over 15 years. Under such formula, the cash portion for Teva would likely amount to about $1.8 billion to $2.4 billion.

Schultz said, “The Texas model is a good one because it satisfies the need for cash … while still maintaining a significant portion of the settlement as products that really can help the people suffering from substance abuse,” he said after Teva issued fourth-quarter profit that beat estimates.

Schultz added that he was confident a deal could be reached in the next year. “It’s difficult to predict when there might be a breakthrough,” Schultz told “Reuters,” but the Texas settlement is a “good framework to use nationwide.”

Published by Globes, Israel business news – en.globes.co.il – on February 10, 2022.

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