Teva’s stock jumps 25% after announcing $4.2 billion deal to resolve opioid lawsuits

Shares of Teva Pharmaceutical Industries Ltd. soared 25.7% in premarket trading on Wednesday, the day after the company said it will pay $4.25 billion to states, plus an additional $100 million to Native American tribes, over 13 years to resolve most opioid lawsuits it’s facing. The agreement in principle aims to resolve allegations that the company illegally promoted two of its opioid products, including downplaying the risk of addiction. “The global settlement appears for all intents and purposes to represent the final chapter of these opioid wars, enabling investors to direct their attention to fundamentals without constantly having to chase down every new opioid litigation headline,’ Raymond James analysts told investors on Tuesday. Teva’s stock hit a five-year low of $6.16 on Aug. 15, 2019, down from a five-year high of $32.45 on July 27, 2017. It closed at $7.12 on Tuesday. Teva’s shares are down 11.1% so far this year, while the broader S&P 500 has declined 16.7%.

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