Teva settles additional price-fixing lawsuits within the US

Teva Pharmaceutical Industries (TASE: TEVA; NYSE: TEVA) has settled one other lawsuit alleging value fixing within the US. Teva can pay $450 million in settlements accepted by the court docket within the US, one among $425 million and the opposite of $25 million, with out admitting wrongdoing. Fee of the settlement quantities might be unfold over six years.

The primary, bigger settlement pertains to a lawsuit filed by the US Division of Justice towards Teva and different corporations in 2020, alleging value fixing that led to overpayments totaling $350 million by US shoppers. The allegation was that Teva used charities that help sufferers to be able to enhance using its then flagship product, Copaxone, a remedy for a number of sclerosis. Based on the prosecution, Teva made donations to those charities that might cowl sufferers’ co-payments for Copaxone, in impact utilizing the charities to pay kickbacks to sufferers for utilizing the drug, opposite to the federal Anti-Kickback Statute. The alleged oblique consequence was a pointy rise within the value of Copaxone, from $17,000 a yr in 2006 to $85,000 in 2017.

The second case, settled for $25 million, involved additional allegations of value fixing within the generic medicine trade. Two years in the past, Teva reached the same settlement in such a case, agreeing to pay a $225 million penalty and to promote pravastatin, a generic remedy for lowering ldl cholesterol and triglycerides, to a different firm. As well as, Teva undertook to donate $50 million price of two generic medicine, clotrimazole and tobramycin, to charity.

Two years in the past, Teva additionally reached a settlement within the affair of the sale of opioids, painkillers that brought on dependancy in some half one million sufferers within the US. In that case, Teva agreed to pay compensation of $4.25 billion, $3 billion of it in money.

Prior to now few years, Teva has taken motion to settle many lawsuits, and likewise to cut back the excessive leverage that has weighed on it because it acquired Actavis, the generic drug division of Allergan, in 2015.

Since Teva introduced the settlement of the opioids case two years in the past, its share value has risen by greater than 170%, bringing it to a market cap of NIS 75 billion, though that is nonetheless far beneath its peak worth of NIS 250 billion.

On this morning’s buying and selling on the Tel Aviv Inventory Trade, Teva’s share value is down 1.55%, at NIS 65.26.

Revealed by Globes, Israel enterprise information – en.globes.co.il – on October 13, 2024.

© Copyright of Globes Writer Itonut (1983) Ltd., 2024.