Teva will pay the state of New York $523 million for its part in the opioid case over 18 years


by Ifi Reporter Category:Law Nov 3, 2022

New York Attorney General Latisha James announced that she reached an agreement with Teva according to which the pharmaceutical manufacturer will pay the state of New York $523 million for its part in the opioid epidemic. According to the prosecutor's statement, this is the highest amount paid by a single defendant sued in New York. This is the end of James's latest lawsuit in relation to the opioid affair - the painkillers that cause mass addiction.
"Teva knowingly and deliberately misled New Yorkers and the American public about the deadly dangers of opioids, and last year a jury ruled that the company is responsible for the destruction and suffering caused," James said in a statement. "It is impossible to put a price tag on human life, on the suffering from addictions and on families that have been destroyed," she added.
However, according to her, the compensation amounts obtained from the various companies will help restore the destruction. "This is an important milestone in our fight against the opioid crisis, and I am proud that I was able to provide critical funding and resources to communities that Teva and other companies have destroyed with their failed conduct." The money will be paid over 18 years. The agreement includes a ban on Teva marketing opioids and funding external companies that promote opioids. It is also subject to restrictions regarding political lobbying.
Eli Cliff, Teva's chief financial officer, referred to the settlement in the case of painkillers in the USA. According to him, "We have progressed in three ways in the settlement, we have reached most of the agreements and we are mainly waiting for technical actions, the issue with Allergan has been closed, the settlement in New York has been closed and has already been set aside. It adds $100 million to the total settlement of $4.2 billion so that the total amount rises to $4.3 billion. We hope that in a few months they will be done with everything by the end of the first quarter at the latest. Every year they will have to pay about 300 million dollars in favor of the arrangement for 13 years. This will affect the cash flow, but it will remain at the level of about 2 billion dollars."
In July it was reported that Teva reached a settlement and will pay 4.3 billion dollars as part of the lawsuits filed against it in the US. Yesterday it was reported about similar settlements with the Walgreens and cvc pharmacy chains.

The international Israeli pharmaceutical giant Teva published its third quarter report for 2022, in which it reported revenues of $3.6 billion as well as cash flow generated from current operations of $543 million and free cash flow of $685 million.

The revenue forecast for 2022 was revised mainly due to the continued headwind in foreign currency, the tax rate forecast range was revised to 12% - 14%; Operating profit, adjusted EBITDA, EPS, and free cash. The flow reaffirmed: revenues of 14.8 - 15.4 billion dollars compared to a previous range of 15.0 - 15.6 billion dollars.
GAAP net income attributable to Teva and GAAP diluted earnings per share were $56 million and $0.05, respectively, in the third quarter of 2022, compared to net income of $292 million and diluted earnings per share of $0.26 in the third quarter of 2021. The decrease in net income in the third quarter of 2022 was primarily due to lower operating income and higher income taxes.
In the bottom line, the company makes predictions and expects a profit of 2.5 dollars per share (mid-term), compared to the analysts' expectations of 2.5 dollars per share. Teva also expects annual free cash flow of $1-9-2.2 billion, and that the adjusted EBITDA will be in the range of $4.7-5 billion.
In the fourth quarter, analysts expect Teva to post a profit of $0.71 per share on revenues of $4.03 billion. Next year, analysts expect it to bring in $15.56 billion and post adjusted earnings of $2.55 per share.
 Carr Schultz, Teva's president and CEO stated: "Teva's performance in the third quarter of 2022 was stable, despite foreign currency effects against the background of the strengthening of the US dollar. Generic revenues increased in Europe and international markets in local currency terms, following growth and successful launches of new generic products."
He also added: "Our flagship products also performed well, with continuous growth in all markets - AUSTEDO's revenues increased by 30% in the US and we expect to meet the revenue forecast of approximately $1 billion for 2022. AJOVY's revenues and market share also increased in the US "in and in Europe, and the market share in Japan was 28%." Teva produced a flow
Cash from current operations of $543 million, and free cash flow of $685 million.
Referring to the issue of opioids - Teva says that it continued to move forward with efforts regarding the overall and final agreement in the case, which it reported on in previous reports. She adds that the company and Allergan "resolved the dispute between them regarding Teva's indemnification obligations" and that she also reached an agreement with the legal counsel of the state of New York. And what's next? Teva needs to sign the final agreement, then have all the states in the US sign the agreement, and then have the districts within the states sign the agreement. According to the company, "We remain optimistic that we will see a high participation rate on this issue nationwide, which will allow us to put these cases behind us and continue to focus on patients ".





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