Friday, Amneal Pharmaceuticals Inc AMRX announced a significant agreement valued at over $270 million to settle claims related to its alleged contribution to the opioid crisis in the U.S.
This move positions Amneal as the latest pharmaceutical company to resolve lawsuits brought forth by states, local governments, and Native American tribes concerning the addiction epidemic.
As part of the deal, Amneal has agreed in principle to pay $92.5 million in cash and provide $180 million worth of naloxone nasal spray, an essential medication for treating opioid overdoses.
The agreement, payable over a decade, aims to address a substantial portion of the more than 900 opioid-related lawsuits facing the company, Reuters noted.
Reuters adds that the settlement further contributes to the growing sum of over $51 billion that various stakeholders, including drug manufacturers, distributors, pharmacy operators, and consultants, have agreed to pay to settle lawsuits and investigations related to their involvement in the opioid addiction and overdose crisis.
State attorneys general have accused Amneal of inadequately monitoring and reporting suspicious orders of generic opioid medications by its customers.
Allegations suggest that the company distributed nearly nine billion pills from 2006 to 2019, further exacerbating the crisis.
“Amneal became one of the largest generic pharmaceutical companies in the world by profiting off the sale of dangerous opioids,” Reuters noted, citing New York Attorney General Letitia James.
Friday, Amneal Pharmaceuticals reported first-quarter adjusted EPS of $0.14, up from $0.12 a year ago, beating the consensus of $0.09.
The company reported sales of $659.2 million, up 8%, beating the consensus of $619.03 million.
Generics revenues increased by 14% due to strong performance in complex generics, oncology biosimilars, and new launches.
Specialty revenues increased by 15%, driven by promoted products in neurology and endocrinology.
AvKARE revenues increased 33%, driven by continued expansion across its channels due to new products.
Guidance: Amneal reaffirms fiscal year 2024 revenue guidance of $2.55 billion-$2.65 billion versus the consensus of $2.60 billion, with an adjusted EPS of $0.53-$0.63 compared to consensus of $0.58.
Price Action: AMRX shares are up 9.55% at $6.80 at last check Friday.
Photo by Christina Victoria Craft on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
