Teva reaches $126M opioid settlement with hospitals

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Teva opioid settlement overview: 

• Who: Teva Pharmaceutical has reached a $126 million settlement with about 500 hospitals.
• Why: The settlement ends claims Teva’s improper marketing of opioids caused hospitals to spend more on patient treatment.
• Where: The Teva Pharmaceuticals settlement benefits about 500 hospitals in the United States.

Teva Pharmaceuticals has reached a $126 million settlement with about 500 U.S. hospitals to end claims it exacerbated the opioid crisis, causing increased costs for healthcare providers.  

The settlement was announced in a Teva quarterly report filed with the U.S. Securities and Exchange Commission (SEC) on Aug. 2.

According to the report, various Teva affiliates, along with several other pharmaceutical companies, were named as defendants in opioids cases initiated by approximately 500 U.S. hospitals and other healthcare providers asserting opioid-related claims, including public nuisance. 

The hospitals alleged they’ve incurred financial harm in the form of increased operating costs for treating patients whose underlying illnesses are “exacerbated or complicated” by opioid addiction, the SEC filing states.

In July, Teva and the hospital representatives reached an agreement on the financial terms of a national settlement, Teva said.  

Teva will supply hospitals cheap, generic Narcan for seven years

Under the financial terms of the proposed national settlement agreement, Teva will pay up to $126 million in cash, spread over 18 years, and supply up to $49 million of its generic version of Narcan (naloxone hydrochloride nasal spray), valued at wholesale acquisition cost, over seven years. 

Narcan is a drug that can be administered to reverse the effects of an opioid overdose. Teva didn’t identify the hospitals in the agreement. 

Teva is one of the major drugmakers named in lawsuits across the country brought by states, local governments and Native American tribes in the wake of the opioid epidemic. The plaintiffs allege drug companies minimized the risks of opioid addiction and failed to prevent the diversion of prescription narcotics for illicit uses.

Last year, the company announced a global settlement worth up to $5 billion to end allegations it contributed to the opioid epidemic. 

In June, Teva Pharmaceuticals agreed to a $193 million settlement with the state of Nevada over its contributions to the state’s opioid crisis.

Teva previously reached a $4.35 billion settlement across the country for its role in the opioid crisis along with a $523 million settlement in New York and a $225 million settlement in Texas.

What do you think of this Teva settlement with hospitals? Let us know in the comments.

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