- Reuters reported that Teva Pharmaceutical Industries Ltd's TEVA CEO said the company will finalize the U.S. opioid settlement by the end of 2022 and start paying in 2023.
- CEO Kare Schultz also said he was unlikely to renew his contract next year.
- In its Q2 earnings release, Teva proposed a $4.35 billion settlement - mostly cash and partly medicines over 13 years - to resolve its opioid lawsuits.
- Related: New York Attorney General Says Teva Tried To Evade Accountability On Opioid Crisis.
- CEO Schultz added that Teva was working on legal documentation that should be wrapped up by the end of September. It then needs approval from states and subdivisions within states.
- Teva has denied wrongdoing, saying it sold legal medication that was approved for the treatment of pain.
- According to government data, the U.S. opioid crisis has caused more than 500,000 overdose deaths over the past two decades, including more than 80,000 in 2021 alone.
- The report noted that CEO also hinted at cost reduction with the closing of some sites. Since 2017, Teva reduced its manufacturing plants to 53 from 80 and plans to close another 10 in the next few years.
- "Teva has one of the lowest P/E ratios of any share I know, and the business is actually very stable, that will grow long term and generate cash - so it's very good for long term investors," the report quoted Schultz. He suggested that the low share price largely stemmed from high debt, which has come down to $20 billion from $34 billion, and the opioid litigation.
- Price Action: TEVA shares closed 0.90% lower at $8.81 on Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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