Teva to pay hospitals $126M opioid settlement

Teva Pharmaceuticals, an Israel-based drug manufacturer, has agreed to pay U.S. hospitals up to $126 million to settle allegations that its marketing of opioids increased the hospitals' operating costs, according to financial documents published Aug. 2.

Several Teva affiliates were named as defendants in opioids cases brought by about 500 hospitals and other providers asserting opioid-related claims, including public nuisance. 

The hospitals alleged that their operating costs increased after treating patients whose underlying illnesses were aggravated or complicated by opioid addiction. 

Terms of the proposed settlement outline that 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. 

Teva's settlement with the acute care hospitals and health systems is contingent upon its satisfaction with the level of participation by complainants in the proposed agreement. 

Becker's has reached out to Teva for comment on the settlement.

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