Teva to pay $750M as part of tax deal with Israel
Contributor since / Followers
JHVEPhoto/iStock Editorial via Getty Images
Teva Pharmaceutical (NYSE:TEVA) announced Tuesday it will pay $750M as part of a settlement with the Israel Tax Authority to resolve lawsuits related to the company’s unpaid taxes from 2008 to 2020.
The agreement resolves “all pending litigation with respect to taxes payable for the company’s taxable years 2008–2020,” Tel Aviv-based Teva (TEVA) said, adding that the deal will not impact its 2024 financial outlook.
Per the terms, the company can make the payment in installments between 2024 and 2029. Also, subject to a maximum of ~$500M, it will be required to pay an additional 5%–7% in corporate taxes when it pays dividends on or repurchases its equity.
The deal removes a key overhang for the generic drugmaker as it pursues its portfolio turnaround strategy, “Pivot to Growth,” announced in 2023.