The share price of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) plunged 5% on the Tel Aviv Stock Exchange yesterday after reports that Purdue Pharma, the leading US manufacturer of opioids, is considering filing for bankruptcy, following more than 2,000 lawsuits filed against opioid producers. Purdue's OxyContin has a 60% market share of the US opioid market.
Teva also has exposure to these lawsuits against opioids which are addictive painkillers based on natural and synthetic materials. The opioid painkillers manufactured by the Israeli pharmaceutical company include Fentora and Actiq as well as similar generic drugs. These drugs are distributed by Teva's distribution company Anda, the fourth largest pharmaceutical distribution company in the US, which it acquired from Allergan.
Market sources estimate that Teva may have to pay at least $300 million in lawsuits for its role in any opioid settlement.
At the end of January, "Bloomberg" reported that Purdue could be compelled to pay up to $50 billion. The market is concerned that any negative developments in the opioid lawsuits could increase the burden on all opioid manufacturers.
"Bloomberg" has also reported that the US FDA has sent a warning letter to Teva unit Activis about defects found at its Davie plant in Florida last July.
Published by Globes, Israel business news - en.globes.co.il - on March 6, 2019
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