Israeli business software systems provider NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) has overtaken ailing Israeli drugmaker Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) in terms of market cap. Yesterday on Wall Street, NICE's share price rose 0.56% to $148.17, giving a market cap of $9.327 billion, while Teva slumped 7.46% to $8.56, giving a market cap of $9.186 billion.
NICE Systems, which enables organizations and businesses to improve customer experience, ensure compliance, and fight financial crime, was boosted by an expansion of its collaboration with Microsoft for its phone recording platforms. A veteran Ra'anana-based company founded in 1986, NICE System's market cap has risen 39% since the start of the year.
In contrast Teva's recent woes are well chronicled. The company's market cap has plunged from $70 billion in 2015 to just $9.186 billion following the ill-fated $40 billion acquisition of Allergan's Actavis generics division, which has saddled Teva with $27 billion in debt as US generics prices plummet following government pressure on 'overcharging.' Teva also faces potentially expensive litigation in the US for price-fixing and the opioid addiction scandal. In addition, the patent on Teva's blockbuster Copaxone multiple sclerosis treatment has expired and annual revenue, which had peaked at $4 billion, is falling fast.
On top of all these troubles, President Donald Trump is still complaining that generic drug prices in the US are unfairly high and yesterday, Teva's sharp fall was triggered by a Morgan Stanley report cutting Teva's share price target to just $6.
Long known as the "share of the nation" and easily the most valuable Israeli company, Teva lost that title 18 months ago to cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP), which today has a market cap of $18.277 billion, almost double that of Teva.
On the Tel Aviv Stock Exchange (TASE), Teva has also seen its market cap overtaken by Bank Hapoalim (TASE: POLI) and Bank Leumi (TASE: LUMI).
In early afternoon trading on the TASE today, Teva's share price was up 0.77% giving a market cap of NIS 32.8 billion, and NICE's share price was down 0.26%, giving a market cap of NIS 33 billion.
Published by Globes, Israel business news - en.globes.co.il - on July 16, 2019
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