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What are the details of Reckitt's agreement with the U.S. federal authorities?

What are the details of Reckitt's agreement with the U.S. federal authorities?
Asked by
Mark Michaels categorie-icon time-icon1 week ago
1 Answer Answer Question

Sam Rondon
Answered time-icon1 week ago

The consumer goods company Reckitt Benckiser (LON: RB) plans to pay up to $1.4bn and resolve all US federal investigations into the company related to the sales and marketing of opioid addiction treatment by its former business Indivior.

The deal includes a much higher amount of money than the initial agreement of $400m that the UK-based company had been prepared to pay for the investigation costs. However, analysts believe that the current situation might allow the company’s new CEO to focus on constructing a comeback plan.

“As new CEO Laxman Narasimhan steps in, this clarifies the legal environment for RB and should allow the new management to focus on the RB 2.0 transformation,” J.P. Morgan analysts said.

“(The agreement) gives the new CEO one less problem to worry about,” said Laith Khalaf, a senior analyst at Hargreaves Lansdown.

Shares of Reckitt climbed around 3.3% in today’s early session.

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