Teva Reaches Agreement With Rhode Island to Settle Opioid-Related Claims

Rhea-AI Summary

Teva Pharmaceuticals has reached a settlement with Rhode Island's Attorney General concerning opioid-related claims, agreeing to pay $21 million over 13 years. Additionally, Teva will provide generic Narcan and Suboxone, valued at $78.5 million, over 10 years. This settlement is seen as a step towards addressing the opioid crisis and does not imply any admission of wrongdoing. Teva continues to pursue a national settlement, while stating that the agreement will help distribute life-saving treatments effectively in Rhode Island.

Positive

• Settlement with Rhode Island valued at $21 million plus $78.5 million in medicines.
• Provision of life-saving treatments, including generic Narcan and Suboxone, for 10 years.
• Continued negotiations for a national settlement indicate proactive management.

Negative

• The settlement could indicate ongoing legal challenges related to opioid claims in other states.
• No admission of liability suggests potential future litigation could impact resources.

TEL AVIV, Israel & PARSIPPANY, N.J.--(BUSINESS WIRE)-- Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) and its affiliates, has reached an agreement with the Attorney General of Rhode Island that settles the state’s and its subdivisions opioid-related claims. Under the terms of the settlement, Teva will pay Rhode Island $21 million over 13-years and will provide its recently launched, lifesaving medicine generic Narcan^® (naloxone hydrochloride nasal spray) and a significant amount of buprenorphine naloxone (sublingual tablets) known by the brand name Suboxone®, valued at a combined $78.5 million (wholesale acquisition cost) over 10 years. The settlement structure is consistent with previously announced settlements and includes a significant component of life-saving medicines – ample supply to meet or exceed the current need in the state of Rhode Island for the next 10 years – while including additional expenses from the trial that was set to start on March 16, 2022. The Company continues to actively negotiate a national settlement.

Teva believes that today’s settlement with the state of Rhode Island is in the best interest of those impacted by the opioid crisis and a critical step forward in getting life-saving treatments to the people who need them. This settlement agreement is not an admission of any liability or wrongdoing and the Company will continue to defend itself in court, in states where we have not reached terms of a settlement agreement.

Buprenorphine naloxone is the primary drug used to treat opioid addiction and considered the gold standard. Naloxone is a life-saving medication that can reverse an overdose from opioids.¹ Teva has included these products in its ongoing pursuit of a national or narrower settlement with individual states such as the deal announced today.

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 finalize the settlement with Rhode Island;
• 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;
• compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; increased legal and regulatory action in connection with public concern over the abuse of opioid medications and our ability to reach a final resolution of the remaining opioid-related litigation; 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;
• other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; potential impairments of our intangible assets; 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 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.

 

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¹ https://www.cdc.gov/stopoverdose/naloxone/index.html

View source version on businesswire.com: https://www.businesswire.com/news/home/20220321005544/en/

IR Contacts

United States

Ran Meir (267) 468-4475

Israel

Yael Ashman 972 (3) 914-8262

PR Contacts

United States

Kelley Dougherty (973) 658-0237

Yonatan Beker (973) 264 7378

Source: Teva Pharmaceutical Industries Limited

FAQ

What is the settlement amount for Teva Pharmaceuticals in Rhode Island?

Teva Pharmaceuticals has agreed to pay $21 million over 13 years as part of a settlement with Rhode Island.

What products will Teva provide under the Rhode Island settlement?

Teva will provide generic Narcan and Suboxone, valued at $78.5 million.

Is the settlement with Rhode Island an admission of wrongdoing by Teva?

No, the settlement does not constitute an admission of liability or wrongdoing by Teva.

How long will Teva provide medicines under the Rhode Island settlement?

Teva will provide the medicines for a period of 10 years.

What are the implications of Teva's settlement in terms of future lawsuits?

The settlement could indicate ongoing legal challenges related to opioid claims in other states.