Teva Analyst Estimates $1B In Price-Fixing Liability Following DOJ Indictment

August 26, 2020

1 minute read

Wall Street Journal reported the U.S. Justice Department has indicted Teva Pharmaceutical Industries Ltd (NYSE: TEVA), alleging the company participated in three different drug price-fixing conspiracies.” data-reactid=”19″>On Tuesday, the Wall Street Journal reported the U.S. Justice Department has indicted Teva Pharmaceutical Industries Ltd (NYSE: TEVA), alleging the company participated in three different drug price-fixing conspiracies.

On Wednesday, one Wall Street analyst said the price-fixing charges are just the latest in a growing list of reasons why investors should avoid Teva stock.

US Indicts Teva Pharmaceutical In Generic Drug Price-Fixing Case” data-reactid=”21″>Related Link: US Indicts Teva Pharmaceutical In Generic Drug Price-Fixing Case

Jason Gerberry has reiterated his Underperform rating and $8 price target for Teva.” data-reactid=”22″>The Teva Analyst: Bank of America analyst Jason Gerberry has reiterated his Underperform rating and $8 price target for Teva.

TARO), Sandoz and other drug companies that operate in Teva’s markets have already been indicted or pled guilty to price fixing, but the DOJ has yet to win a case in court proving criminal or civil misconduct.

Given the high bar for establishing such conduct in court appears to be high, Gerberry said the real risk associated with the indictment for Teva investors will be the costs associated with a potential multi-year legal defense and/or a settlement.

“Based on prior settlements we assume $1bn in contingent liability for TEVA for generic price fixing matters,” Gerberry wrote in the note.

Another potential $1 billion in charges is more bad news for Teva investors, who already litigation challenges tied to the opioid epidemic.

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