Teva Pharmaceutical reached a global settlement to resolve all of the lawsuits filed against it in connection with its role in the opioid epidemic across the United States.
On Monday, Teva said it has an “agreement in principle with a group of state attorneys general and other entities to resolve all of the pending and potential opioid litigations against it.
Under the settlement, the pharmaceutical company agreed to donate $23 billion worth of buprenorphine naloxone (sublingual tablets) known known by the brand name Suboxone, a treatment for opioid addiction. It also agreed to pay $250 million over ten years.
Additionally, Teva confirmed that it reached a settlement agreement with Cuyahoga and Summit counties of Ohio.
The company agreed to donate $25 million worth of Suboxone and to pay $20 million in cash to Cuyahoga and Summit counties. The settlement resolves the allegations against it by both counties in connection with the opioid epidemic.
“The Teva product donation will significantly contribute to the care and treatment of people suffering from addiction and assist impacted communities,” according to the company.”
“The company is pleased to positively contribute to solving the nationwide opioid epidemic. Teva has consistently committed to complying with all laws and regulations regarding its manufacture and sale of opioids. Neither settlement includes an admission of liability,” it said.
Following its announcement of the opioid settlements, TEVA shares increased by more than 8 percent to $8.15 each.
Teva is the world’s largest provider of generic medicines.
Other pharmaceutical companies aim to reach a global opioid settlement
Meanwhile, U.S. pharmaceutical companies, AmerisourceBergen (NYSE: ABC), Cardinal Health (NYSE: CAH) and McKesson (NYSE: MCK) also reached a settlement agreement with the two Ohio counties.
The three drug companies agreed to a $215 million opioid settlement despite the fact they “strongly dispute the accusations” of Cuyahoga and Summit counties.
AmerisourceBergen, Cardinal Health and McKesson believe that “settling the bellwether trial is an important stepping stone to achieving a global resolution and delivering meaningful relief.”
More than a dozen drug companies and pharmacies are facing over 2,000 lawsuits related to the opioid epidemic.
Last month, Purdue Pharma reached a tentative deal to settle all the opioid-related complaints filed against it by local governments, states and Native American tribes.