Pharmaceutical companies Allergan, a unit of AbbVie ( Chart ABBV - $158.02 2.72 (1.751%) ), and Teva Pharmaceutical Industries ( Chart TEVA - $8.44 0.09 (1.055%) ) are considering a payment of more than $5 billion combined in order to settle over 3,500 opioid-related lawsuits.
According to a report by Bloomberg, which cited people familiar with the discussions, both companies have indicated a willingness to reach a settlement in the consolidated case [In Re National Prescription Opioid Litigation, 17-md-2804, U.S. District Court, Northern District of Ohio (Cleveland)].
Teva has previously settled with four states to the tune of $378 million, while other firms including Johnson & Johnson have agreed to a $26 billion settlement with numerous states.
Sources cited one complication with any potential settlement. Allergan and Teva are still fighting over an indemnity agreement from 2016, when Teva acquired Allergan's generic opioid business for $40.5 billion.
Allergan has claimed that this deal shifted all costs for the business to Teva.
In February 2022, Teva CEO Kare Schultz told Reuters that the company was prepared to pay as much as $3.6 billion in cash and donated medicine to settle opioid cases.
The company paid $1.124 billion in litigation costs in the first quarter of 2022, according to the latest Form 10-Q.
The opioid epidemic has been linked to more than 500,000 deaths in the US over the past two decades.
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Sources: Bloomberg, Equities News
