- Reuters reported the Teva Pharmaceutical Industries Ltd TEWA The CEO said the company will finalize the US opioid agreement by the end of 2022 and begin paying in 2023.
- CEO Kare Schultz also said he is unlikely to renew his contract next year.
- In its Q2 earnings release, Teva proposed a $4.35 billion settlement – mostly cash and some medication over the age of 13 – to settle his opioid lawsuits.
- Related: New York Attorney General says Teva tried to evade responsibility for opioid crisis.
- CEO Schultz added that Teva is working on legal filings, which should be completed by the end of September. It must then be approved by states and subdivisions within states.
- Teva has denied wrongdoing, saying it sold legal drugs approved to treat pain.
- According to government data, the US opioid crisis has caused more than 500,000 overdose deaths over the past two decades, with more than 80,000 in 2021 alone.
- The report noted that the CEO had also hinted at cutting costs by closing some locations. Since 2017, Teva has reduced its manufacturing facilities from 80 to 53 and plans to close another 10 over the next few years.
- “Teva has one of the lowest price-to-earnings multiples of any stock I know of, and the business is actually very stable that will grow and generate cash over the long term — so it’s very good for long-term investors,” the report quoted Schultz as saying. He suggested that the low stock price was largely due to high debt, which has fallen from $34 billion to $20 billion, and the opioid lawsuit.
- Price promotion: TEVA shares closed 0.90% lower at $8.81 on Friday.
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