22 October 2019 by jbchevrel
Teva Pharmaceutical Industries Ltd. (TEVA) is a global pharmaceutical company developing, manufacturing, and marketing generic and branded medicines. The CDS tightened c100bp between yesterday London close and yesterday NY close. Today it pared 30bp of this outperformance. IG peers also outperformed the IG group (mck -4 cah -8 ) The company confirmed, yesterday after our close, that there was an agreement in principle with a group of attorneys general from 4 US states (North Carolina, Pennsylvania, Tennessee and Texas) and certain defendants, for a global settlement framework regarding opioids. Under this agreement, TEVA would donate buprenorphine naloxone (sublingual tablets -- primary drug used to treat opioid addiction), in quantities of up to the amount needed to meet the majority of the currently estimated US patient need over the next 10 years (worth c$23b). TEVA and its affiliates also announced a settlement agreement with both Cuyahoga and Summit counties of Ohio. TEVA will provide them with buprenorphine naloxone (called Suboxone® -- at $25m wholesale acquisition cost and distributed over 3y + cash payment $20m paid over 3y). Yesterday in London evening post close, TEVA share gained c16% before paring more than half of that gains.