Teva Pharmaceutical Down Slightly As Supreme Court Says Generics Can't Be Sued

Teva Pharmaceutical Industries Ltd TEVA shares are down slightly today, but off the lows of the session as the U.S. Supreme Court ruled that generic drug companies cannot be sued under state law over side effects. The Supreme Court said that the company, along with others such as Mylan Laboratories MYL and can not be sued on the basis these companies did not provide adequate warnings on potential side effects of the drugs. From Teva's press release: "Teva is pleased with the High Court's decision today, which provides great clarity for both the drug industry as well as patients. This ruling reiterates that once the U.S. Food and Drug Administration approves a generic prescription drug as interchangeable to the brand, their labels must also be identical in all material respects. Accordingly, generic companies do not have the ability to influence labeling and related information and should not be held liable for failing to do so. This is also a win for American consumers as they bear the ultimate burden of these lawsuits. The decision of the Supreme Court will help to alleviate unnecessary litigation. Teva's top priority is the quality of our products and the safety of our patients."