Teva taps new CFO, hikes legal set-aside to more than $1B as opioid deal falters

Teva
Teva has expanded its legal set-aside to more than $1 billion as a massive opioid deal hangs in the balance. (Teva)

Aiming to settle the thousands of opioid lawsuits it faces, Teva has proposed an eye-popping $23 billion-plus deal with plaintiffs. So far, that offer hasn't gained much traction, though, leaving the drugmaker with a legal overhang that just tops 10 figures. 

Teva set aside another $468 million to cover its legal costs as it works to negotiate that settlement, bringing its total this year to more than $1.1 billion. 

Teva's outgoing CFO Mike McClellan––set to be replaced next month by Flex's Eli Kalif––said Thursday that the amount represents the low end of Teva's potential liabilities and could grow if a settlement is reached. "Our expectation is to eventually––once there’s a settlement––there will be much more clear number," McClellan said during the company's Q3 earnings call. "Nothing is more probable than what we’ve reserved."

Free Webinar

Striving for Zero in Quality & Manufacturing

Pharmaceutical and medical device manufacturers strive towards a culture of zero – zero hazards, zero defects, and zero waste. This webinar will discuss the role that content management plays in pharmaceutical manufacturing to help companies reach the goal of zero in Quality and Manufacturing.

RELATED: J&J, Teva offer a whopping $48B combined to wrap opioid suits, but not all plaintiffs are on board

Suggested Articles

Compared with the FDA "boxed warning," the EMA version puts a smaller restriction on the higher dose but broadens the cautionary language.

Shionogi's newest antibiotic Fetroja has now earned the FDA's approval, but will a mortality-rate warning scuttle the drug's chances?

Novartis' Sandoz doubled down in Japan as Lupin retreated. Dr. Reddy's posted a loss tied to its Zantac recall. Aslan's varlitinib failed again.