Teva continues to tumble amid price fixing charges

Teva Photo: Sivan Faraj

HSBC estimates Teva will face a $3 billion fine and has cut the Israeli pharmaceutical company's share target price to $10.

The share price of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) was down 6.65% in afternoon trading on the Tel Aviv Stock Exchange to NIS 41.83. In trading on the NYSE, Teva's share price is down 5.50% to $11.44, giving a market cap of $12.465 billion. 

Teva is reeling from allegations about price fixing with rivals, which HSBC estimates will result in a $3 billion fine. Over the weekend 44 US states filed indictments against 20 generic drug manufacturers including Teva over price fixing. As a result of the affair HSBC has cut its target price for Teva from $13 to $10 and lowered its recommendation from "Buy" to "Hold."

The Israeli pharmaceutical company's share price is down 80% from its peak in 2015. The share price is nearing the $11.16 low point it reached in November 2017 as Teva CEO Kare Schultz assumed office, and a similar level to which the company was trading in the early 2000s.

The price fixing scandal is one of only many woes afflicting Teva at the moment including its involvement in opioid suits, the expiry of the patent of its blockbuster multiple sclerosis treatment Copaxone and $26.7 billion in debt taken to buy Allergan's generic drug unit Activis.

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

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

Teva Photo: Sivan Faraj
Teva Photo: Sivan Faraj
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