Shares from Teva Pharmaceutical Industries (TEVA – Get Report) declined 13.5% to $ 9.40 on Tuesday after UBS downgraded the pharmaceutical company stock to neutral from purchases in light of opioid-related lawsuits.
Analyst Navin Jacob also lowered his price target on the Israeli company stock for $ 12 from $ 22.
Teva recently said it had reached an agreement with Oklahoma that includes a $ 85 million payment to the state – just days before a trial slated for Tuesday over opioid claims against the drugmaker by the state's attorney general.
Jacob said in a note to clients that he sees greater potential legal costs than previously expected after Teva's settlement with Oklahoma. He estimated that the trial could cost Teva 4.1
Teva is one of two defendants who settled prior to the trial of Purdue Pharma's agreement and $ 270 million. Payment in March. Johnson and Johnson (JNJ – Get Report), another goal of Oklahoma's lawyer general, said through his subsidiary Janssen Pharmaceuticals that it was ready to defend and said it was open to a decision.
CNBC reported that Oklahoma State Attorney General Mike Hunter condemned Johnson & Johnson and other opioid decision makers on the first trial day to run a "fraudulent, multibillion-dollar brainwashing campaign" that led to more than 46,000 deaths in the state during one decade.
Hunter said Johnson & Johnson was "the kingpin behind this public health situation" by cultivating and importing the raw materials other drug users used for their products, "CNBC said.