Relatively modest financial settlements in an Ohio opioid lawsuit gave Teva shares a boost on Tuesday, as it suggested that the Israeli drug company would not be at much at risk as had been feared.
Teva’s share price was up 4.25 percent at $6.99, giving a market cap of $7.572 billion, after Endo International announced an $11 million out-of-court settlement with two Ohio municipalities, Globes reported.
Endo will pay $10 million to avoid further litigation and donate $1 million drugs to treat diabetes and allergies. The company acknowledged no wrongdoing or responsibility. In the same case Allergan is also reportedly negotiating a $5 million deal.
Teva has agreed to pay the State of Oklahoma $85 million compensation for its sale of opioids. It has been feared that the Oklahoma case could be just the beginning, and the company’s ultimate liability could reach over $4 billion.
It was the fourth largest distributor of the notoriously addictive painkillers in the U.S.
Meanwhile, buoyed by the good news from Teva, the Tel Aviv Stock Exchange performed well on Tuesday. The Tel Aviv 35 Index rose 0.27 percent to 1,580.80 points; the Tel Aviv 125 Index rose 0.45 percent to 1,490.23 points; and the BlueTech Global Index rose 1.21 percent to 369.35 points. The TelBond 20 corporate bond index rose 0.07 percent to 365.56 points. Trading turnover was NIS 1.01 billion.
Phoenix, Elbit and Strauss also rose.