Teva Pharmaceutical (NYSE: TEVA) shares rose by 17% on Monday after announcing a settlement agreement to resolve claims and removes Teva from the Track 1 opioid litigation.
Teva will provide Cuyahoga and Summit counties of Ohio with critical opioid treatment medication, known as Suboxone, valued at USD 25 Million. The agreement will distribute the treatment over three years to help in the care and treatment of people suffering from addiction.
Suboxone is also known as buprenorphine naloxone, sublingual tablets, which is the primary drug used to treat opioid addiction.
Additionally, Teva will also donate approximately USD 23 Billion over the next 10 years to meet the majority of U.S. patients in need of opioid addiction treatment. Teva mentioned an agreement in principle with a group of general attorneys from North Carolina, Pennsylvania, Tennessee, Texas, and other certain defendants.
“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,” said Teva in a press release.
More than 2,000 counties and cities have sued more than a dozen drug companies, distributors, and pharmacies, alleging that the industry helped create a nationwide opioid epidemic, according to CNBC.
A “bellwether” trial is expected to begin this week involving two Ohio counties. But four drug companies, including Teva, reached a last minute deal.