Teva Pharmaceuticals is close to finalizing a $4.35bn nationwide settlement regarding its alleged role in the US opioid crisis, following years of negotiations. The agreement in-principle is expected in a few weeks pending a host of approvals. The settlement amount will be paid out over the next 13 years with annual charges expected at $300mn and $400mn. The news was well received by shareholders and bondholders, with its stock rallying 21% and some of its bonds up 5-6 points on Thursday following the announcement.
Further, the company expects mid-single digit revenue growth over the next 5 year. Looking past the settlement at hand, Teva has already repaid $15bn in debt over the last 5 years and expects to reduce its outstanding debt from $20bn to 12bn in the next 5 years. Revenue expectations are at up to $15.6bn this year with CEO Kare Schultz confident that they will “stay the world leader in generics.”
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