Teva jumps on Louisiana opioid settlement

Teva Photo: Sivan Faraj

The share price of the Israeli pharmaceutical company rose sharply on Wall Street following the $15 million agreement with Louisiana.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has announced that it has agreed a settlement with the Attorney General (AG) of Louisiana on the state’s opioid-related claims. Following the announcement, Teva's share price bucked the market on Wall Street, rising 3.9%, giving a market cap of $10.5833 billion.

Teva, headed by CEO Kare Schultz, added that the agreement is contingent on confirmation from the state by November 2, 2021.

Under the terms of the settlement, Teva will pay Louisiana $15 million over an 18-year time period and will provide an additional donation of lifesaving medicines to aid in opioid addiction and recovery, valued at $3 million (wholesale acquisition cost).

Two years ago, Teva agreed an overall US national settlement plan estimated at $23 billion in medicines to treat opioid addiction, which has yet to be signed. Teva is one of only a group of companies involved in the negotiations.

Teva said that it is continuing to negotiate a national settlement and remains open in parallel to pursuing opportunities with individual states such as the deal announced today, as long as it is consistent with the nationwide approach. Teva added that it will continue to defend itself in court in states such as New York and California where it has not reached settlement terms.

The opioid pain-killer addiction crisis has caused the deaths of more than 500,000 people across the US and more than 3,000 lawsuits have been filed around the country against the pharmaceutical and distribution companies involved. The lawsuits allege that the pharmaceutical companies pushed the pain-killers for use that killed many unnecessarily and that the pharmaceutical companies, distributors and pharmacies did not do enough to stop the large numbers of pills reaching users.

Teva described the settlement with Louisiana as "a positive step forward in getting life-saving medicines to people suffering from opioid addiction."

Published by Globes, Israel business news - en.globes.co.il - on September 29, 2021

Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Teva Photo: Sivan Faraj
Teva Photo: Sivan Faraj
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