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TEVA Shares Rise on Broad Support for Opioids Settlement
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Teva Pharmaceutical Industries Limited (TEVA - Free Report) announced that a sufficient number of states and local governments have agreed to deal terms of its nationwide settlement agreement to resolve most of its opioid-related litigation.
Teva faces several lawsuits with cities, states and Native American tribes, which claim that it is one of the several companies whose opioid-based drugs are responsible for fueling the nationwide opioid epidemic.
Last year, Teva reached a nationwide settlement to resolve thousands of its opioid-related litigation. However, for the settlement to be finalized, the required number of states and local governments needed to agree to deal terms.
Teva has already settled with or confirmed participation from 48 of the 50 states. With the required participation from states and local governments, it can now move forward with the nationwide settlement. Though the sign-on process for the states’ subdivisions will now begin, Teva is confident that it will get similar support from the states’ subdivisions.
Teva’s shares were up 3.5% on Monday in response to the news. Teva’s share price has risen 20% in the past year against the industry’s 26.1% decline.
Image Source: Zacks Investment Research
Per the settlement, Teva will pay up to $4.25 billion (including the already settled cases), which will be spread over 13 years. In addition, Teva will pay plus $100 million for Native American tribes, also spread over 13 years. The settlement amount includes $1.2 billion worth of its new generic version of Narcan nasal spray to the states over the next 10 years.
Some better-ranked generic drugmakers are Dr. Reddy's Laboratories Limited (RDY - Free Report) , Assembly Biosciences (ASMB - Free Report) and Acasti Pharma (ACST - Free Report) . While Dr Reddy’s and Assembly Biosciences have a Zacks Rank of 1, Acasti Pharma has a Zacks Rank #2 (Buy).
Estimates for Dr. Reddy's earnings per share have risen from $3.09 to $3.25 for fiscal 2023 and from $3.47 to $3.57 for fiscal 2024 in the past 60 days. Shares of Dr. Reddy's have plunged 16.2% in the past year.
In the last reported quarter, Dr. Reddy's delivered an earnings surprise of 38.98%.
Assembly Biosciences’ stock has declined 23.9% in the past year. Assembly Biosciences’ loss estimates for 2023 have narrowed from $1.65 to $1.63 per share in the past 60 days.
Assembly Biosciences beat earnings estimates in two of the last four quarters and missed the mark in the other two, with the average surprise being 3.46%.
Acasti Pharma’s stock has declined 50% in the past year. While Acasti Pharma’s loss estimates for 2022 have narrowed from 62 cents to 46 cents, those for 2023 have improved from 50 cents to 44 cents per share in the past 60 days.
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TEVA Shares Rise on Broad Support for Opioids Settlement
Teva Pharmaceutical Industries Limited (TEVA - Free Report) announced that a sufficient number of states and local governments have agreed to deal terms of its nationwide settlement agreement to resolve most of its opioid-related litigation.
Teva faces several lawsuits with cities, states and Native American tribes, which claim that it is one of the several companies whose opioid-based drugs are responsible for fueling the nationwide opioid epidemic.
Last year, Teva reached a nationwide settlement to resolve thousands of its opioid-related litigation. However, for the settlement to be finalized, the required number of states and local governments needed to agree to deal terms.
Teva has already settled with or confirmed participation from 48 of the 50 states. With the required participation from states and local governments, it can now move forward with the nationwide settlement. Though the sign-on process for the states’ subdivisions will now begin, Teva is confident that it will get similar support from the states’ subdivisions.
Teva’s shares were up 3.5% on Monday in response to the news. Teva’s share price has risen 20% in the past year against the industry’s 26.1% decline.
Image Source: Zacks Investment Research
Per the settlement, Teva will pay up to $4.25 billion (including the already settled cases), which will be spread over 13 years. In addition, Teva will pay plus $100 million for Native American tribes, also spread over 13 years. The settlement amount includes $1.2 billion worth of its new generic version of Narcan nasal spray to the states over the next 10 years.
Zacks Rank & Stocks to Consider
Teva currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked generic drugmakers are Dr. Reddy's Laboratories Limited (RDY - Free Report) , Assembly Biosciences (ASMB - Free Report) and Acasti Pharma (ACST - Free Report) . While Dr Reddy’s and Assembly Biosciences have a Zacks Rank of 1, Acasti Pharma has a Zacks Rank #2 (Buy).
Estimates for Dr. Reddy's earnings per share have risen from $3.09 to $3.25 for fiscal 2023 and from $3.47 to $3.57 for fiscal 2024 in the past 60 days. Shares of Dr. Reddy's have plunged 16.2% in the past year.
In the last reported quarter, Dr. Reddy's delivered an earnings surprise of 38.98%.
Assembly Biosciences’ stock has declined 23.9% in the past year. Assembly Biosciences’ loss estimates for 2023 have narrowed from $1.65 to $1.63 per share in the past 60 days.
Assembly Biosciences beat earnings estimates in two of the last four quarters and missed the mark in the other two, with the average surprise being 3.46%.
Acasti Pharma’s stock has declined 50% in the past year. While Acasti Pharma’s loss estimates for 2022 have narrowed from 62 cents to 46 cents, those for 2023 have improved from 50 cents to 44 cents per share in the past 60 days.