Israeli IT security company Check Point Software Technologies Ltd. (Nasdaq: CHKP) has extended its lead over Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) as Israel's most valuable company over the past week. At close of trade last night on Wall Street, Check Point's share price had risen 1.37% to $108.91, giving a market cap of $17.8 billion, while Teva's share price fell 0.18% to $17.01, giving a market cap of $17.27 billion. Today Teva opened another 2% down at $16.67, giving a market cap of $16.93 billion, while Check point fell 0.34% to $108.54, giving a market cap of $17.74 billion.
Even in its wildest dreams, it is unlikely that Check Point ever imagined becoming Israel's most valuable company. Two years ago, Check Point had a market cap of $14 billion, while Teva was worth five times as much at $70 billion. Even at the beginning of the month, Teva's market cap was $31 billion, nearly 90% more than Check Point.
But in the first week of August, the ailing Israeli pharmaceutical company, already hit by ill-advised acquisitions and related debt, the expiry of its Copaxone patent and a US regulatory crackdown on the prices of generic drugs, published its second quarter results. In its ill-received financial statement, Teva announced $6 billion GAAP net-loss, cut its guidance for the third quarter and cut its dividend by 75% and spoke of 7,000 layoffs, and shutting down 15 factories worldwide.
To reduce its crippling $35 billion debt, Teva is also expected to sell off $3 billion dollars in assets including its women's health, oncology and pain treatment portfolios.
Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2017
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