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