Teva Reaches Agreement With San Francisco to Settle Opioid-Related Claims

Rhea-AI Summary

Teva Pharmaceuticals has reached a settlement with the City and County of San Francisco regarding opioid-related claims, providing $24.8 million over 13 years and $20 million worth of generic Narcan over 10 years. This settlement, while not an admission of liability, aims to deliver life-saving treatments for opioid addiction. Previously, a California Superior Court judge found that Teva did not cause a public nuisance related to opioids in several counties. Teva continues to pursue a nationwide settlement in the interest of those benefiting from its medicines.

Positive

• Settlement of $24.8 million over 13 years to San Francisco.
• Provision of $20 million worth of generic Narcan to help opioid addiction.

Negative

• Settlement does not admit any liability or wrongdoing.
• Future risks associated with ongoing opioid litigation.

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 City and County of San Francisco and the People of the State of California that settles opioid-related claims asserted on behalf of the County and City of San Francisco. The settlement will provide San Francisco $24.8 million over 13 years, as well as life-saving medicine generic Narcan^® (naloxone hydrochloride nasal spray), valued at $20 million (wholesale acquisition cost), over 10 years.

Today’s settlement is another critical step forward in getting life-saving treatments to people suffering from opioid addiction. This settlement agreement is not an admission of any liability or wrongdoing, and the Company will continue to pursue a nationwide settlement in the best interest of the people who benefit from the medicines that Teva provides throughout the US, and the world, every day.

In November 2021 a Superior Court judge in California found that Teva did not cause a public nuisance in Orange County, Los Angeles County, Santa Clara County and the City of Oakland, nor wrongfully promote opioid products in the state.

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 San Francisco;
• 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;
• 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; 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, in our Quarterly Report on Form 10-Q for the first 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/20220711005935/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 recent settlement amount by Teva Pharmaceuticals related to opioid claims?

Teva Pharmaceuticals has settled for $24.8 million over 13 years with San Francisco.

What product is Teva providing as part of the opioid settlement?

Teva is providing $20 million worth of generic Narcan as part of the settlement.

What was the outcome of the previous court ruling concerning Teva's opioid products?

A California Superior Court judge previously found that Teva did not cause a public nuisance related to opioids.

Does the settlement indicate Teva's liability in the opioid crisis?

The settlement does not constitute an admission of liability or wrongdoing by Teva.

What are the implications of Teva's opioid settlement for its future litigation?

Teva continues to pursue a nationwide settlement regarding opioid litigation.