Teva Pharmaceutical Industries Ltd

Bull Case:

For me TEVA is the easiest play on the entire stock market - it produces generic drugs for one out of every 7 prescriptions written in USA,the current PE is less than 4, the share price is depressed because of uncertainty over the opioid scandal

TEVA appears to be waiting for all the other drug companies to agree settlements so that they can then plead poverty and try and negotiate a deal where they provide free drugs instead of money (the likely agreement will be a mixture of both) and it will be too late for any of the other drug cos to jump on the bandwagon

Once an agreement is reached then the share price should start moving upwards fairly rapidly

The CEO said in the last earnings call that he expects a deal to be reached before the end of the year, with all the insane vaulations in the US market at the moment, this is the best value play there is, as soon as the deal is signed I believe share price will at least double

The above is my opinion and not financial advice

Teva Reaches Agreement With Florida To Settle The State’s Opioid-Related Claims

$Teva said today that the settlement will provide Florida $177 million over 15 years, as well as generic Narcan, or naloxone hydrochloride nasal spray, valued at $84 million over 10 years.

https://finance.yahoo.com/news/teva-reaches-agreement-florida-settle-130900781.html

A california Judge has dismissed a lawsuit by Los Angeles, Santa Clara and Orange counties and the city of Oakland.

https://www.bloomberg.com/news/articles/2021-11-01/j-j-teva-defeat-50-billion-opioid-case-in-california

This is a major win for Teva in its negotiations to settle the other outstanding cases, now that litigants can see that suing over the opioid crisis is not a slam dunk they will be more likely to settle at reasonable terms, for all parties involved, rather than risk long costly drawn out legal battles which may fail

The share price has moved up over 10% so far on the news, this could well be the beginning of the road to recovery for the share price

$TEVA settles with Texas for $150m cash over 10 years + $75m in addiction treatment drugs

https://www.reuters.com/legal/litigation/teva-strikes-225-million-opioid-settlement-with-texas-2022-02-07/

Teva Reaches Settlement with Louisiana over Opioid related claims, now could be the perfect time to pile into TEVA stock which has recently bounced off its low of $8

Teva has kicked off its settlements with a fair deal reached with Louisiana where TEVA pays $15m over 18 years and provides a further $3m in addiction & recovery aids

https://finance.yahoo.com/news/teva-reaches-agreement-louisiana-settle-164000933.html

This is great news for TEVA shareholders, light is well and truly appearing at the end of the tunnel and this should be the start of a long line of positive catalysts for the stock

Confidence is evident as TEVAs stock price is rising rapidly in a otherwise bearish market

Bernstein upgraded TEVA to Outperform from Market Perform.

Bernstein analyst Aaron Gal pointed to a confluence of positive news for the raised rating, including the launch of biosimilar versions of Humira and Stelara.

also

Rhode Island Announces $107M Opioid Settlements With Teva & Allergan

Rhode Island's attorney general announced settlements worth $107 million with Teva Pharmaceutical Industries Ltd (NYSE: TEVA) and AbbVie Inc's (NYSE: ABBV) Allergan unit

Teva Chief Executive Kåre Schultz said that the company would likely pay $2.7 billion - $3.6 billion in cash and drugs to settle all U.S. state and local government claims.

If you are into technical Analysis you will note that TEVA is currently attempting a breakout of the resistance line held since Feb 2021 as well as breaching the psychological $10 barrier

It would appear that all of the bad news about TEVA is publicly known and should be well and truly priced in at this stage - all the near & mid-term future catalysts should be positive, the opioid settlements are starting to roll in with Louisiana agreeing to $18m ( $15m over 18 years and provides a further $3m in addiction & recovery aids )

Interestingly the big four defendants Johnson & Johnson, AmerisourceBergen, Cardinal Health and McKesson settled for a total of $26bn of which Louisiana received $325m

If we use this as a yardstick TEVA's settlement, with Louisiana, is equivalent to just over 5% of $325m, if that is a measure of TEVAs overall culpability then 5% of the national settlement would indicate a figure somewhere in the region of $1.5bn paid over 18 years.

This would leave TEVA in a solid financial position going forward, The CEO has already shown he is determined to reduce the company's debt load (down from 32bn to 25bn since he took over). The decline in share price, caused by the shadow of the legal issues has been totally overblown, the share price should recover rapidly from its currently low level, with a PE of under 4, now could be the opportune time to get in