Teva, a pharmaceutical company facing a price-fixing indictment by the U.S. Department of Justice (DOJ), is taking steps to resolve the case. During the second quarter of 2023, Teva disclosed setting aside $462 million for legal settlements, with $200 million specifically allocated for the DOJ’s criminal price-fixing charges. The company’s CFO, Eli Kalif, stated that this provision is based on advanced settlement discussions with the DOJ.
Despite these settlement talks, Teva remains prepared to defend itself at trial, scheduled for May 2024, if necessary. In 2020, Teva became the seventh drugmaker charged in the alleged price-fixing scheme, after rejecting previous settlement offers from the government. The DOJ accused Teva of three counts of criminal conspiracy and leading a group of drugmakers that had already pleaded guilty to price-fixing charges and cooperated with prosecutors.
While Teva denies any involvement in the price-fixing ring, it has been grappling with various lawsuits and has been pursuing settlements to focus on its core businesses. Last year, the company reached a $4.25 billion nationwide opioid settlement, aiming to regain mid- to single-digit revenue growth by 2027.
In terms of business development, Teva recently appointed Angus Grant, Ph.D., as its Executive Vice President of Business Development. Amidst this ongoing litigation, Teva reported second-quarter revenues of $3.9 billion, a 4% increase from the same period in 2022.
Meanwhile, under new CEO Richard Francis, the company has rolled out a new “Pivot to Growth” strategy. Built on four pillars, the tactic will see the company leverage its commercial portfolio and biosimilars, its “innovative” pipeline and its arsenal of generics as well as “focused capital allocation.”
Overall, Teva’s potential settlement with the DOJ represents a significant financial move for the company, allowing it to address legal challenges and concentrate on its future growth prospects. The outcome of these negotiations may have implications for the pharmaceutical industry and Teva’s reputation in the market.
