Teva to Receive $700 Million After Agreement With Allergan

Allergan has agreed to pay Teva a one-time $700 million payment to settle a dispute over working capital that was transferred between the companies when Teva acquired Allergan’s generics unit for $40.5 billion in 2016.

“The company expects to use this cash payment for repayment of a portion of its term loan debt,” Teva stated.

The settlement comes as a relief to the Israeli company, which has been plagued with debt problems since the deal. Teva, the world’s largest manufacturer of generics, recently made moves to raise $5 billion in securities and announced major reform plans that will eliminate thousands of positions and close or consolidate certain facilities.