As previously reported, Gabelli analyst Kevin Kedra upgraded Teva Pharmaceutical to Buy from Hold following reports that the company had proposed to settle its opioid litigation by giving away $15B of free drugs. A global settlement is appearing more likely and a "finalized opioid settlement in almost any form is likely to be a positive for Teva" as it would eliminate a critical overhang, the analyst contends. The negative impact to Teva's EBITDA of $15B of free drugs could be as low as $250M per year, depending on the details of the proposed settlement, Kedra said. A global settlement is likely to be positive for companies directly facing opioid liabilities, but using free product as restitution could disrupt the generic drug industry as "it is hard to compete against free drugs," Kedra added.