Bloomberg News

Teva Gains on Settlements of Propofol Suits: Wilmington Mover

February 28, 2012

(Updates with closing share price in second paragraph.)

Feb. 21 (Bloomberg) -- Teva Pharmaceutical Industries Ltd.’s American shares rose after the generic drugmaker said it set aside $285 million to settle claims that it sold the anesthetic Propofol in a way that led colonoscopy patients to develop hepatitis C.

Teva’s American depositary receipts, each representing one ordinary share, gained 1.3 percent to $45.24 at the close in New York.

Teva said it put aside the money to resolve Nevada colonoscopy patients’ claims that the company intentionally sold Propofol in vials large enough to be reused by doctors. The patients say they developed the disease from tainted Propofol containers.

Earnings for Petach Tikva, Israel-based Teva rose to $1.4 billion, or $1.59 a share, from $1.1 billion, or $1.25, a year earlier, the company said Feb. 15. Teva bought Cephalon, based in Frazer, Pennsylvania, for $6.5 billion last year to help broaden its portfolio of brand-name drugs. Teva’s U.S. headquarters is in North Wales, Pennsylvania.

The company will pay more than $250 million to settle more than 80 cases in Nevada state court over the Propofol sales, according to people familiar with the accords who asked not to be identified because they weren’t authorized to speak about the agreements.

Teva has settled about 120 Propofol lawsuits and reserved $270 million for the litigation, the drugmaker told the U.S. Securities and Exchange Commission in a Feb. 17 filing. Teva will set aside an additional $15 million in the first quarter for the cases, Denise Bradley, a U.S.-based Teva spokeswoman, said in an interview.

--With assistance from Jef Feeley in Wilmington, Delaware. Editors: Reg Gale, Andrew Pollack

To contact the reporter on this story: Phil Milford in Wilmington, Delaware at pmilford@bloomberg.net

To contact the editor responsible for this story: Jef Feeley at jfeeley@bloomberg.net


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