Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) is to appeal a US court ruling from last May awarding $356 million to a hepatitis C sufferer who used the company's medication.

Teva and Baxter Corporation, which distributed the drug, have filed a petition with the Nevada Supreme Court. In addition to the $356 million Teva is being ordered to pay the plaintiff Henry Channin, Baxter has been ordered to pay a further $144 million.

Renowned defense attorney Alan Dershowitz is to represent Teva and Baxter in the appeal. Teva and Baxter will argue that the court held them responsible without the prosecution proving that it was the drug that harmed the plaintiff. Teva and Baxter also claim that there were legal errors in the court's decision.

Teva has already been asked to deposit $580 million to serve as a guarantee until the court case ends.

The case centers around Teva's propofol drug which is given to sedate patients prior to surgery. In the summer of 2009, Teva recalled batches of drugs including propofol which were discovered to be contaminated at a production line in California. This medication was also found in the home of the singer Michael Jackson after his death but Teva insisted that he did not possess one of the potentially contaminated drugs.

Teva has reported that 200 suits have been filed against the company by patients that took the drug. The patients all became infected with Hepatitis C after reuse of the drug in contravention of the manufacturer's instructions.

Teva's share price fell 1.58% on the TASE today to NIS 180.60, after falling 0.77% on Nasdaq on Friday to $50.32, giving a market cap of $45.2 billion.

Published by Globes, Israel business news - www.globes-online.com - on March 6, 2011

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