(Reuters) — Teva Pharmaceutical Industries will pay up to $523 million to New York state as part of a nationwide settlement of lawsuits alleging it helped fuel the U.S. opioid epidemic.
CEO Kare Schultz said Israel-based Teva, the world’s largest generic drugmaker, will make the payment over 18 years, “which is good for us because it means it’s very manageable in terms of our cash flow and our debt situation.”
“We’re quite pleased with that result,” Schultz told an analyst call after Teva reported third-quarter results that missed expectations and sent its Tel Aviv shares down more than 6%.
After years of negotiations, Teva in July proposed a $4.25 billion nationwide settlement — mostly cash and part drugs that will total $300 million to $400 million over 13 years — to resolve opioid lawsuits.
It expects to begin paying in 2023, but it is still convincing states and counties to accept its proposal.
“We’re pretty optimistic that we’re going to get a very, very large number of states and subdivisions to join, and we’re going to put the majority of opioid litigation behind us,” Schultz said.
On Tuesday, CVS Health Corp., Walgreens Boots Alliance and Walmart agreed to pay $13.8 billion to settle thousands of U.S. state and local lawsuits related to opioid pain medications.