Teva Pharmaceutical Industries (TEVA) said it has reached an agreement in principle with the working group of States' Attorneys General, counsel for Native American Tribes, and plaintiffs' lawyers representing the States and subdivisions, on the primary financial terms of a nationwide opioids settlement.

Teva will pay up to $4.25B plus approximately $100M for the Tribes, spread over 13 years. The figure includes the supply of up to $1.2B of its generic version of Narcan. The agreement provides the option for a significant supply of Narcan to provide access across the nation to help combat the opioid epidemic, Teva said in its earnings release. Teva has revised its provision to reflect this agreement in principle on a nationwide settlement.

The agreement is contingent upon final documentation among the working group and Teva, and reaching the thresholds for participation that will be set forth in the final agreement. The agreement is also contingent upon Teva reaching an agreement with AbbVie's (ABBV) Allergan with respect to any indemnification obligations, and Allergan reaching a nationwide opioids settlement. Once the documentation is finalized, the nationwide agreement will need to be adopted by a sufficient number of plaintiffs, which would then resolve the vast majority of opioid-related claims and litigation by states, subdivisions, and Native-American tribes in the United States, Teva noted.

There are no remaining trials currently scheduled against Teva in 2022, with the possible exception of the relief phase of the trial in the New York opioids litigation; additionally, Teva, New York State, and its subdivisions are engaged in ongoing settlement negotiations, it added. The Company expects that it will have the documentation for the nationwide settlement agreement finalized within the coming weeks, with the nationwide settlement sign-on process for states, subdivisions, and tribes to follow." While the agreement will include no admission of wrongdoing, it remains in our best interest to put these cases behind us and continue to focus on the patients we serve every day," the company said.

More By This Author:

What Wall Street Is Saying About Boeing Ahead Of Earnings
What Wall Street Is Saying About Alphabet Ahead Of Earnings
Opening Day: Virax Biolabs Shares Soar In Trading Debut