According to a report published by Reuters, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) has agreed to settle a shareholder lawsuit and pay $420 million. The lawsuit, filed in 2016, alleged that the Israeli company engaged in anti-competitive practices by fixing the prices of generic drugs.
Teva spokesperson Kelley Dougherty said, “This resolution is in the overall best interest of Teva and the patients who continue to rely on us each day for the world’s largest portfolio of generics medicines.”
Most of the settlement amount will be funded by the company’s insurers, Dougherty added.
Further, the U.S. Department of Justice filed litigation against Teva in 2020 for conspiring with competitors to raise generic drugs’ prices.
About Teva
Teva is primarily engaged in the production and sale of generic drugs. Its other business interests include active pharmaceutical ingredients and proprietary pharmaceuticals. The company has facilities in Israel, North America, Europe, Australia, and South America.
TEVA stock’s upcoming earnings report for the fourth quarter and full-year 2021 is scheduled to be released on February 10, 2022.
Shares of the company closed 3.1% down on Tuesday at $8.89.
Wall Street’s Take
Recently, Bernstein analyst Aaron Gal maintained a Hold rating on the stock and lowered the price target to $11 from $14 (23.7% upside potential).
Overall, the stock has a Hold consensus rating based on 3 Holds. The average Teva Pharmaceutical Industries stock prediction of $10.50 implies 18.1% upside potential. Shares have lost 27% over the past year.
Risk Analysis
According to TipRanks’ Risk Factors tool, TEVA is at risk mainly from two factors: Finance & Corporate and Legal & Regulatory, each of which accounts for 25% of the total 44 risks identified for the stock. Under each of these risk categories, the company has 11 risks, details of which can be found on the TipRanks website.
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