Teva Pharm sees nationwide U.S. opioid settlement in 2022 By Reuters

© Reuters. FILE PHOTO: The logo of Teva Pharmaceutical Industries is seen in Tel Aviv, Israel February 19, 2019. REUTERS/Amir Cohen

By Steven Scheer

JERUSALEM (Reuters) -Teva Pharmaceutical Industries remains optimistic it could reach a nationwide settlement by the end of the year over lawsuits alleging it and other drug companies fueled the U.S. opioid epidemic, its chief executive said on Tuesday.

Israel-based Teva, the world’s largest generic drugmaker, raised its legal provision for the opioid litigation by $1.1 billion in the first quarter to $2.6 billion.

“It’s the result of a holistic assessment of what’s the effect of (state) settlements we have done so far, (and) what’s the most likely outcome based on our current negotiations,” CEO Kåre Schultz told a conference call of analysts after reporting as-expected first quarter profit.

Schultz told Reuters in February Teva was bracing to pay as much as $3.6 billion in cash and medicines to settle thousands of lawsuits.

Teva in March settled with Florida and Rhode Island, with a bench trial in West Virginia this month and another in San Francisco slated for July. But Schultz is hoping for a nationwide settlement and to that end, there are ongoing negotiations.

“We’re getting closer there,” Schultz said. “I’m slightly more optimistic on the time schedule now. And that’s why I hope that we will see a nationalised settlement before the end of this year.”

Teva earned 55 cents per diluted share excluding one-time items in the January-March period, down from 63 cents a share a year earlier.

Hurt by lower sales in North America of both generic drugs and its own multiple sclerosis treatment Copaxone, which is facing stiff competition, revenue fell 8% to $3.66 billion.

Analysts had forecast Teva would earn 55 cents a share ex-items on revenue of $3.76 billion, according to I/B/E/S data from Refinitiv.

Amid currency fluctuations, Teva lowered its 2022 revenue estimate to $15.4-$16.0 billion from $15.6-$16.2 billion, after revenue of $15.9 billion in 2021. It reiterated its projection for 2022 adjusted EPS of $2.40-$2.60, versus $2.58 last year.

Sales of the company’s migraine drug Ajovy grew 16% to $36 million and reached a 24% market share, although Schultz said he expects that to rise to 33%. Huntington’s disease treatment Austedo’s sales rose 6% to $154 million, with projections of $1 billion in 2022.

Overall generic drug sales in North America dipped 15% to $899 million due to competition on many products.

Revenue in Europe slipped 5% to $1.16 billion, although sales of Ajovy doubled to $30 million.

Teva’s net debt fell to $20.7 billion and the company continues to use all its cash to pay down debt.

Its New York-listed shares were flat at $8.55 in early trading.