Teva Announces Nationwide Opioids Settlement to Move Forward After Receiving Broad Support from States

Rhea-AI Summary

Teva Pharmaceuticals has moved forward with a nationwide settlement aimed at resolving opioid-related claims, having secured participation from 48 of 50 U.S. states. The agreement, reached in collaboration with a working group of States’ Attorneys General, does not include an admission of wrongdoing. Teva believes the settlement is in the best interest of impacted communities and allows the company to concentrate on its patients. The process for subdivisions of the states to join the settlement will start soon, reflecting positive engagement from the states.

Positive

• Settlement agreement reached with 48 states to resolve opioid claims, indicating strong state support.
• Focus remains on addressing the needs of patients amidst ongoing litigation.

Negative

• Requires continued participation from the remaining two states to finalize the settlement.
• Uncertainty regarding the ability to resolve all claims and litigation may persist.

TEL AVIV, Israel & PARSIPPANY, N.J.--(BUSINESS WIRE)-- Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today confirmed a sufficient level of participation to move forward with its nationwide settlement agreement to resolve opioid-related claims and litigation by states, cities, counties, and other subdivisions in the United States. Teva has either already settled with or confirmed participation from 48 of the 50 states and will continue to pursue participation by those states that have yet to join. The sign-on process for the states’ subdivisions will now begin. Given the very positive response from states, the Company remains optimistic that the nationwide settlement will garner similar support from the states’ subdivisions.

As previously announced, Teva has reached an agreement with the working group of States’ Attorneys General and plaintiffs’ lawyers representing the states and subdivisions, on the nationwide opioids settlement. While the agreement will include no admission of wrongdoing, it remains in the Company’s best interest – and in the interest of those impacted by the opioid crisis – to settle these cases and to continue to focus on the patients Teva serves every day.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has been developing and producing medicines to improve people’s lives for more than a century. We are a global leader in generic and specialty medicines with a portfolio consisting of over 3,500 products in nearly every therapeutic area. Around 200 million people around the world take a Teva medicine every day, and are served by one of the largest and most complex supply chains in the pharmaceutical industry. Along with our established presence in generics, we have significant innovative research and operations supporting our growing portfolio of specialty and biopharmaceutical products. Learn more at www.tevapharm.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to:

• our ability to obtain sufficient participation of plaintiffs for the nationwide opioid settlement to take effect;
• compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; scrutiny from competition and pricing authorities around the world, including our ability to successfully defend against the U.S. Department of Justice criminal charges of Sherman Act violations; potential liability for patent infringement; product liability claims; failure to comply with complex Medicare and Medicaid reporting and payment obligations; compliance with anti-corruption sanctions and trade control laws; environmental risks; and the impact of ESG issues;
• our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; consolidation of our customer base and commercial alliances among our customers; delays in launches of new generic products; the increase in the number of competitors targeting generic opportunities and seeking U.S. market exclusivity for generic versions of significant products; our ability to develop and commercialize biopharmaceutical products; competition for our specialty products, including AUSTEDO^®, AJOVY^® and COPAXONE^®; our ability to achieve expected results from investments in our product pipeline; our ability to develop and commercialize additional pharmaceutical products; and the effectiveness of our patents and other measures to protect our intellectual property rights;
• our substantial indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, may result in a further downgrade of our credit ratings; and our inability to raise debt or borrow funds in amounts or on terms that are favorable to us;
• our business and operations in general, including: uncertainty regarding the COVID-19 pandemic and the governmental and societal responses thereto; effectiveness of our optimization efforts; our ability to attract, hire and retain highly skilled personnel; manufacturing or quality control problems; interruptions in our supply chain; disruptions of information technology systems; breaches of our data security; variations in intellectual property laws; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism; costs and delays resulting from the extensive pharmaceutical regulation to which we are subject or delays in governmental processing time due to travel and work restrictions caused by the COVID-19 pandemic;
• the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; significant sales to a limited number of customers; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets;
• other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; potential impairments of our intangible assets; the impact of other macroeconomic developments such as rising inflation and geopolitical conflicts including the ongoing conflict between Russia and Ukraine; potential significant increases in tax liabilities (including as a result of potential tax reform in the United States); and the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business; and other factors discussed in this press release, in our Quarterly Report on Form 10-Q for the third quarter of 2022 and in our Annual Report on Form 10-K for the year ended December 31, 2021, including in the sections captioned "Risk Factors” and “Forward Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230109005272/en/

IR

United States

Ran Meir

(267) 468-4475

Israel

Yael Ashman

972 (3) 914-8262

PR

United States

Kelley Dougherty

(973) 658-0237

Israel

Eden Klein

+972-50-4019959

Source: Teva Pharmaceutical Industries Limited

FAQ

What is the status of Teva's opioid settlement as of October 2023?

Teva has confirmed participation from 48 out of 50 states for its nationwide opioid settlement.

How many states have settled with Teva Pharmaceuticals regarding opioid claims?

Teva has settled with or confirmed participation from 48 states.

Is Teva admitting wrongdoing in the opioid settlement?

No, the settlement includes no admission of wrongdoing.

What is the significance of the opioid settlement for Teva's future?

The settlement allows Teva to focus on patient care and resolves ongoing litigation.

What challenges does Teva face with the opioid settlement?

Teva needs full participation from all states and may face ongoing litigation concerns.