Teva Pharmaceutical Industries Ltd (ADR)(NYSE:TEVA) Rimsa plant, which was purchased in 2016 in a $2.3 billion deal, could be recommencing its production operations soon. Rumor has it that the prospect of starting production at the newly purchased Mexican plant is likely to begin in the next few months. The plant had been shut following allegations of impropriety in the purchase deal.
However, it was not clear what the problems were all about given that the plant’s previous owners, the Espinosa family, have refuted the allegations. Nonetheless, the two parties have been locked up in a legal battle, which seems to have been put to rest with the new development.
But the comprehensive remediation process could take longer
There is an ongoing investigation into Rimsa and 147 medicines by Cofepris. Teva says that it is in collaboration with the Mexican pharmaceutical regulator in restarting its manufacturing lines.
In an emailed statement, the generic drugmaker stated, “We expect to begin the first phase of resuming operations, starting with the oral solid dose manufacturing, in the coming months.”
As all this unfolds, there are indications that the lawsuit between the two could take a long time to resolve. According to Teva, the Espinosas lied and masked extraordinary legal contraventions in allocating the $2.3 billion price. The violations have impacted the manufacturer because it cannot sell its products and this has resulted in substantial losses.
Meanwhile, Rimsa asserts that Teva’s allegations are baseless. With all this to and forth throwbacks, the duo’s battle is likely to go as a far as the end of 2019 or early 2020.
COFEPRIS found no problem with the drugs’ registrations
After a three-day inspection of Rimsa’s plant by COFEPRIS, Teva was asked to stop the production of 44 products. Besides honoring the order, the rig maker also halted its commercial manufacture plus the sale of a number of other products and eventually the plant was shut completely.
However, a memorandum dated March 13 that was issued by the regulator states that none of the 147 drugs produced by Rimsa had adverse effects. However, the litigation is still going on and it remains to be seen whether or not Rimsa is willing to back up Teva’s intentions. In the meantime, Teva’s stock closed at $30.76 a fall of $0.84 or 2.66%.
