Teva jumps on reported US price-fixing settlement talks

Kare Schultz Photo: Shlomi Yosef

According to Bloomberg, in talks with the US Justice Department, Teva and other companies will admit some of the allegations and pay fines.

Teva Pharmaceutical Industries Ltd.'s (NYSE: TEVA; TASE: TEVA) share price has jumped in New York following a report by Bloomberg that the company, along with other companies, has been conducting negotiations over the past six months with the US Department of Justice on a settlement of the affair of price fixing of drugs in the US market. Blomberg cites "people familiar with the matter." Teva's share price is currently up by more than 5% on the New York Stock Exchange, after rising by 7.28% in Tel Aviv today.

According to the report, the settlement being formulated will involve Teva and the other companies admitting part of the accusations against them, without them being convicted, in exchange for cooperation and payment of fines. The report gives investors a degree of assurance that a settlement of the affair can be expected shortly.

Teva is alleged to have been involved in price fixing for a period of nineteen months between 2013 and 2015. No fewer than 44 US states filed a claim against twenty drug companies, Teva among them, alleging that Teva had substantially raised the prices of 112 generic drugs, by as much as 1,000%, and had coordinated prices with the producers of 88 additional generic drugs.

Bloomberg cites Teva spokesperson Kelley Dougherty as saying: "We continue to cooperate with the DOJ’s investigation. As with any government investigation or litigation, we are willing to entertain possible resolution but only if it makes sense for the company, our shareholders and the patients that we serve. We will continue to defend ourselves vigorously in these matters."

Bloomberg also notes that Teva bonds were among the top gainers in the US high-yield market. Today, Teva reported the results of its offers to repurchase or make early repayment of three series of notes, indicating fairly high acceptance of the offers.

Published by Globes, Israel business news - en.globes.co.il - on November 25, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Kare Schultz Photo: Shlomi Yosef
Kare Schultz Photo: Shlomi Yosef
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