The City of Baltimore, led by Mayor Brandon M. Scott, reached an $80 million settlement with Teva Pharmaceuticals Industries Ltd (NYSE:TEVA) to resolve claims against the company for its role in the city's opioid epidemic.
Under the agreement, Teva will pay an initial $35 million by the end of 2024, with the remaining amount due by July 1, 2025.
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The settlement is part of Baltimore's broader litigation strategy against opioid manufacturers and distributors.
Previous settlements with AbbVie Inc's (NYSE:ABBV) Allergan, CVS Health Corp (NYSE:CVS), and Cardinal Health Inc (NYSE:CAH) have brought in $322.5 million in total recoveries.
The ongoing legal battle will proceed to trial on Sept. 16 against the remaining defendants, who were responsible for more than half of the opioids distributed in Baltimore.
Mayor Scott emphasized the city's decision to opt out of the national Teva settlement, which would have yielded only $11 million over 13 years. Instead, the new agreement brings in more than seven times that amount in under a year.
Baltimore secured more than three times the funds it would have received from global settlements.
Baltimore will dedicate $5 million to education and outreach about the 988 crisis helpline, $3 million to the Penn North Recovery Center and $2 million to BMore Power.
Additional funds will be administered following the framework detailed in the executive order to address the ongoing epidemic.
In July, Teva announced topline results from its Phase 3 SPACE study evaluating the efficacy of Ajovy (fremanezumab) for the prevention of episodic migraine in children and adolescent patients aged 6-17.
The trial met its primary endpoint with Ajovy achieving a statistically significant superior efficacy over 12 weeks of treatment compared to placebo.
TEVA Price Action: Teva stock is down 1.43% at $17.55 at last check Tuesday.
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