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Shares of Amneal Pharmaceuticals (NASDAQ:AMRX) climbed 9% Friday after the drugmaker released a better-than-expected Q1 earnings report and said it had reached an agreement in principle to settle litigation filed against the company over its alleged role in the US opioid crisis.
Under the settlement, Amneal would pay $92.5M in cash and provide $180M in naloxone nasal spray over a ten-year period. In lieu of the spray, parties can opt to receive 25% of the product’s value in cash, up to $45M, during the last four years of the ten-year period. The settlement includes no admission of wrongdoing.
Amneal said the settlement would resolve substantially all the litigation filed against in by states, counties, municipalities, and Native American Tribal Nations across the United States. The settlement is subject to the negotiation and execution of a definitive settlement agreement amongst the parties, the company added.
The company also released a Q1 earnings report that handily beat Street expectations on both the top and bottom lines. In connection with the opioid settlement, the company recorded a $94M charge during the quarter.
Amneal also reaffirmed its 2024 full year guidance of net revenue of $2.55B to $2.65B and adjusted EPS of $0.53 to $0.63. Analysts were expecting adjusted EPS of $0.58 on revenue of $2.6B.
