Teva continues to sign compromises in the opioid case: reached an agreement with West Virginia

Teva continues to sign with compromises in the opioid affair - which indirectly caused the deaths of 500,000 drug users in the U.S., amid addiction to these substances - that has plagued the stock in recent years.
The company has reached an agreement with West Virginia Attorney General, along with Allergan, which was acquired by ABBVIE -0.36% in 2019. The two companies will jointly pay $ 161.5 million.
In practice, Teva will pay the state $ 75 million over a 15-year period, along with hassle and legal costs of $ 8 million. Teva will also supply the Narcan drug over a 10-year period worth $ 27 million. West Virginia has already reached agreements with Johnson & Johnson, by the way.
"The agreement is another important step toward achieving life-saving treatments for people suffering from opioid addiction. The agreement does not include an admission of wrongdoing and the company will continue to actively negotiate in order to reach a nationwide settlement in the United States."
About two weeks ago it was reported that Teva and Allergen are willing to pay $ 5 billion to end all lawsuits against them. It sounds like a blown number but keep in mind that every dollar paid in the coming years is capitalized for today so it is worth less. That means in practice Teva will pay less real money and more in value and money worth less than today.
The opioid lawsuits affect nature more than the results - and the end of the lawsuits is just around the corner. This is good for nature, which is also reducing its debt to 20 billion
In any case, Teva is reaching more and more compromise arrangements, with every $ 1 billion expected to be $ 1 billion lower than the share price ($ 8.5 today). But in nature are already optimistic and the company expects to complete all claims by the end of the current year. How significant is this? When it published the latest reports Teva fell 7% but ended the day overall with a 2% increase after the company announced that its expectation is to end the affair by the end of the year. That is, more than the financial results - at this point the opioid claims are affecting Teva stock very significantly. And see it again today.
The capital market is always looking ahead and when analyzing the company and the financial relationship - it seems that the chance-risk ratio tends in favor of Teva. Teva trades at a profit multiplier of 3, which expresses the big risks, but are the risks so big? Really not sure. The company is gradually reducing its debt when in two quarters it will already bring it below 20 billion, and as mentioned, the end of the opioid affair is expected to have a positive effect on it. Will the settlement of the opioid claims allow Teva to open a new page?
Teva's recent reports have been lukewarm, perhaps even worse. The company lowered its annual revenue forecast to 15.4-16 billion d compared to $ 15.6-16.2 billion in the previous forecast and lower than analysts' expectations to 15.97 billion, the company missed the revenue line and stood at earnings per share. Teva reported adjusted earnings of 55 cents, revenue of $ 3.66 billion, similar to analysts' expected earnings of 55 cents per share but lower than expected earnings of $ 3.75 billion. Copaxone revenue forecast also dropped to $ 750 million, compared to $ 850 million in the previous forecast. The company also had to record a loss of $ 1.1 billion, following a provision for losses if there would be in the opioid case and recorded a net loss of $ 955 million.