Here's Why Teva Pharmaceutical Soared Today
Shares of Teva Pharmaceutical (NYSE: TEVA) rose over 19% today after the company announced it had made a last-minute settlement with two counties in Ohio related to the opioid epidemic. The company and three drug distributors will pay a combined $260 million settlement to avoid arguing the case in a federal trial, which would have been the first stemming from the health crisis.
Teva Pharmaceutical will only pay $20 million in cash and donate another $25 million in Suboxone (naloxone), the primary drug used to treat opioid addiction, to the counties over a three-year period. That's far below the worst-case scenario and suggests fears that the company would end up paying billions of dollars in total cash settlements could be a severe overestimate.
As of 3:05 p.m. EDT, the pharmaceutical stock had settled to a 7.7% gain.
Source Fool.com
