Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) has lost a suit to Baxter International Inc. (NYSE: BAX) worth $144 million. Teva will be forced to pay a Nevada patient the full $500 million damages because it was deemed responsible for the side-effects from the anesthetic Propofol, which resulted in the patient developing hepatitis C.
Baxter's suit came after a Las Vegas court last year instructed Teva and Baxter to pay $500 million in compensation to the patient.
An arbitration panel in Delaware ruled that Teva was bound by an agreement with Baxter to cover all the liability after Baxter sold it the rights to use Propofol until 2009.
In Nevada alone, Teva faces almost 300 lawsuits from patients infected with hepatitis after using the anesthetic. Senior health officials in Nevada blamed Propofol for the patients developing the incurable liver disease due to reuse of the drug, which had been delivered in oversize containers. Teva has already reportedly reached a settlement for the lawsuits of one third of the patients who have sued them over Propofol.
Teva's share price fell 2.9% on Nasdaq yesterday to $36.62, giving a market cap of $32.6 billion, and fell 0.2% at the opening on the TASE today to NIS 138.
Published by Globes, Israel business news - www.globes-online.com - on September 21, 2011
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