Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) has reached an agreement with the state of Texas to settle its opioid-related claims.
As per the terms of the agreement, the company will pay $150 million to the state over a period of 15 years and will provide Narcan (naloxone hydrochloride nasal spray) worth $75 million over a decade.
The President and CEO of Teva, Kåre Schultz, said, “While the settlement includes no admission of wrongdoing by Teva or its affiliates, it remains in the best interest of Teva to put these cases behind us and continue to focus on the patients we serve every day.”
Narcan has the potential to reverse an overdose from opioids, the company said. It launched the first generic version of the medicine in December.
Israel-based Teva manufactures and sells generic drugs, active pharmaceutical ingredients and proprietary pharmaceutical products. It offers medicines for cardiovascular diseases, pain, obesity, cancer and supportive care, infectious diseases and HIV, and colds and coughs.
Wall Street’s Take
Last month, Argus Research analyst Jasper Hellweg downgraded the rating on Teva to Hold from Buy but did not provide a price target.
Additionally, Aaron Gal of Bernstein maintained a Hold rating and lowered the price target to $11 from $14 (30% upside potential).
Overall, the stock has a Hold consensus rating based on 2 Holds. The average TEVA stock forecast of $11 implies 30% upside potential. Shares have lost 25.7% over the past year.
TipRanks data shows that financial blogger opinions are 75% Bullish on Teva, compared to the sector average of 70%.
Download the TipRanks mobile app now.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.