The Israeli pharmaceutical company's share price fell another 12.5% on the NYSE, on concerns about the lawsuits it is facing.
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) share price fell 12.5% on Wall Street today to $9.52, giving a market cap of $10.4 billion - its lowest price since March 2000. Even before today, Teva's share price had fallen 57.6% since its high-point in August 2018 and 24.3% over the past month.
Today's plunge was triggered by a report from UBS, which cut its target price for Teva from $22 to $12 and estimated that the lawsuits Teva faces over opioid addiction and price fixing could cost the pharmaceutical company as much as $4 billion - threatening to erase the entire costs savings of $3 billion from the company's drastic streamlining program - and some more.
This is an amount the company can ill afford with its debt still at $27 billion, sharply falling revenue from Copaxone, continuing weakness and uncertainty in the US generics market and no big new growth engines on the horizon.
Published by Globes, Israel business news - en.globes.co.il - on May 28, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019
Teva Photo: Sivan Faraj