UBS has significantly cut its estimate of Teva Pharmaceutical Industries Ltd.'s (NYSE: TEVA; TASE: TEVA) legal liability in the opioid crisis, "Bloomberg" reports.
UBS analyst Navin Jacob has reassessed the liability following NBC's reports that Purdue Pharma and the Sackler family are prepared to pay up to $12 billion to settle 2,000 lawsuits, claiming that the company downplayed the addictive effects of the painkillers. In addition, an Oklahoma court ordered J&J to pay $575 million for its role in marketing the drugs.
UBS had previously estimated Teva's liability as likely to be between $650 million and $4.25 billion but has now cut that to between $140 million and $1.84 billion. Teva has already agreed an out-of-court settlement of $85 million in Oklahoma.
Teva's share price rose 3.73% on Wall Street yesterday to $6.96, giving a market cap of $8.11 billion. The share price had fallen 9.57% in the previous session.
Published by Globes, Israel business news - en.globes.co.il - on August 29, 2019
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