US Congress heaps more misery on Teva

Teva

Teva fell over 10% on a bearish Wall Street after Congress members accused it of obstructing a price-fixing probe and Moody's revised its outlook to negative.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) had another miserable session on the NYSE yesterday, after Congress members accused it of obstructing a price-fixing probe and Moody's revised its outlook to negative.

The Dow Jones Industrial Average anyway lost 3.05% yesterday, its largest single-day fall this year, as global recession fears were fueled by negative yields by bonds in some sectors, for the first time since 2008, and data was published in Germany that the economy had contracted in the second quarter of 2019.

But it was a particularly disastrous day for Teva, whose already greatly diminished share price fell another 10.51% to $6.30, giving a market cap of $7.167 billion. Firstly, Moody's lowered its outlook for the Israeli pharmaceutical company from stable to negative on concerns about its debt, falling Copaxone sales, weak uptake of its new drugs, and litigation risks.

This latter concern came into focus later in the day when US Senator Bernie Sanders and Representative Elijah Cummings launched an investigation targeting Teva, Mylan and Heritage Pharmaceuticals for allegedly obstructing a Congressional inquiry into their pricing practices for generic drugs. The two lawmakers said the companies have yet to provide any of the documents repeatedly requested since 2014.

Published by Globes, Israel business news - en.globes.co.il - on August 15, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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