Teva Finalizes Nationwide Opioid Settlement Terms

Rhea-AI Summary

Teva Pharmaceuticals has finalized the documentation for a nationwide opioid settlement with States’ Attorneys General and Multi-District Litigation Plaintiffs. The settlement aims to resolve Teva's opioid-related disputes, including indemnification obligations with Allergan. The sign-on process for states will commence soon, with expectations of high participation rates based on previous settlements in Texas, Florida, Louisiana, Rhode Island, West Virginia, San Francisco, and New York. This move is seen as a step towards putting legal challenges behind and refocusing on patient care.

Positive

• Finalized opioid settlement documentation with States’ Attorneys General and Multi-District Litigation Plaintiffs, allowing focus on patient care.
• Expectations for high participation rates in the nationwide settlement, drawing from favorable precedents.

Negative

• Reliance on sufficient participation of plaintiffs for the settlement to take effect.

TEL AVIV, Israel & PARSIPPANY, N.J.--(BUSINESS WIRE)-- Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), announced today that the company has finalized the documentation of its proposed nationwide opioid settlement with both the working group of States’ Attorneys General and the Multi-District Litigation Plaintiffs’ Executive Committee. Allergan has also finalized its settlement terms. As announced during the Company’s third quarter earnings call, Teva and Allergan have resolved their dispute with respect to Teva's indemnification obligations.

The sign-on process for states will now begin, followed by a similar sign-on process for the states’ subdivisions and special districts.

Given the high participation rate in other nationwide opioids settlements -- and Teva’s settlements with Texas, Florida, Louisiana, Rhode Island, West Virginia, San Francisco and New York -- we remain optimistic that a high participation rate in this nationwide settlement will be achieved, enabling us to put these cases behind us and continue to focus on the patients we serve 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; our ability to successfully execute and maintain the activities and efforts related to the measures we have taken or may take in response to the COVID-19 pandemic and associated costs therewith; 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/20221121005916/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 recent opioid settlement involving Teva Pharmaceuticals?

Teva Pharmaceuticals has finalized documentation for a nationwide opioid settlement with States’ Attorneys General and Plaintiffs, aiming to resolve opioid-related disputes.

What are the expectations for participation in Teva's opioid settlement?

Teva anticipates a high participation rate based on previous settlements in various states.

How does the opioid settlement affect Teva's focus on patient care?

The settlement allows Teva to put legal challenges behind them and refocus on serving patients.

When does the sign-on process for the opioid settlement begin?

The sign-on process for states will commence soon after finalizing the settlement documentation.