Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) share price fell 9.57% on Wall Street yesterday to $6.71, giving a market cap of $7.2 billion, after NBC reported that Purdue Pharma and the Sackler family were in talks to pay up to $12 billion to settle 2,000 lawsuits on opioids.
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Teva boosted by lower than expected JJ opioid fine
The issue of the abuse of the painkillers is causing troubled Teva’s share enormous volatility. On Monday, after an Oklahoma court ruled that JJ must pay a fine of $572 million, which was much less than expected, for playing down the addictive risks of the opioid painkillers, Teva’s share price rose 5.25%, and in pre-market trading the share price was up another 4.45% yesterday.
But the pre-market gains were soon wiped out as investors revised their opinion on the Oklahoma ruling, which might not be so bad for cash-rich JJ, but was of a level that would hurt Teva with its debt burden (Teva has already reached an $85 million out-of-court settlement in Oklahoma) in future cases. Then came the Purdue settlement talks report to further weigh heavily on Teva.
Published by Globes, Israel business news – en.globes.co.il – on August 28, 2019
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