A jury ruled today that Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and two other drugmakers must pay $162.5 million in punitive damages for selling the anesthetic Propofol in a way that led three colonoscopy patients to develop Hepatitis C, "Bloomberg" reports.
Jurors in a Nevada state court in Las Vegas ordered the three companies to pay the punitive damages over sales of the anesthetic in vials large enough to be reused by doctors when performing colonoscopies, and thereby causing the spread of Hepatitis C. The prosecutors sought more than $700 million in damages. The other two companies required to pay damages are Baxter Healthcare Corp. and McKesson Corp.
This is not the first time Baxter and Teva have had to pay punitive damages over a hepatitis outbreak in Nevada tied to Propofol. The first case resulted in a punitive verdict of more than $500 million against the drugmakers. Teva has agreed to cover all damage awards arising from the Nevada cases on behalf of Baxter and McKesson.
Teva said, "It is clear in this case, too, that medical personnel negligently disregarded the product's instructions for use. They reused unsterile instruments, thereby harming their patients. Propofol was approved for marketing by the FDA with clear instructions for one-time use only, with sterile instruments only, and for one patient only. Teva should not be held liable for the blatant disregard for patient safety by medical professionals who do not follow these instructions. Again, Teva was prevented from presenting its main evidence to the jury at the trial, which proves the injustice of the Nevada court system. Teva believes that the claims brought against it in this case are groundless, and has already begun the appeal process for a similar case with the US Supreme Court. Teva will appeal this cynical and provocative case as well."
Published by Globes [online], Israel business news - www.globes-online.com - on October 11, 2011
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