Teva could face up to $4B in opioid marketing-related damages in U.S. – UBS

Teva Pharmaceutical Industries (TEVA -5%) is down in early trade on the heels of a downgrade to Neutral and $12 price target at UBS after the company announced an $85M settlement with Oklahoma. Analyst Navin Jacob believes that the company could have a much as a $4B exposure with the remaining plaintiffs who have filed suits against certain painkiller makers for their role in the opioid crisis. The company and its affiliates face 1,500 lawsuits over their promotional activities of the addictive drugs. A much-anticipated trial in Ohio will start in October.

Teva is also mired in a U.S. lawsuit over alleged price-fixing of generic medicines that could result in $600M – 3,200M in additional damages according to Mr. Jacob.

JPMorgan’s Chris Schott and Leerink’s Ami Fadia share UBS’s cautious outlook on the company, but Raymond James’ Elliot Wilbur (Outperform 2) does not appear too concerned saying “any ultimate settlement will be reasonably relative to the company’s underlying cash flow generation,” adding that Teva was “uniquely motivated” to settle with Oklahoma.

https://seekingalpha.com/news/3467153-teva-face-4b-opioid-marketing-related-damages-u-s-ubs