Market Overview

Teva's Stock Inches Higher Amid Cost-Cutting Plan

Share:
Teva's Stock Inches Higher Amid Cost-Cutting Plan

Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA), the troubled Israel-based generic and specialty medicines developer, confirmed with Bloomberg a plan to lower expenses and better manage its debt.

A Bloomberg report cited Israeli-based news sources Calcalist, which initially reported Teva would cut as many as 6 thousand jobs, accounting for 11 percent of its global workforce. But a company spokesperson confirmed with Bloomberg that this figure is not accurate.

The spokesperson did confirm Teva will cease recruiting plans for new employees and won't be replacing employees leaving the company. The report helped boost Teva's stock higher by just shy of 1 percent early Thursday at $32.90, but the stock continues to flirt with a multi-year low of $31.90.

$40.5 Billion Acquisition

Teva's $40.5 billion acquisition of Allergan plc Ordinary Shares (NYSE: AGN) riddled the company with debt. In addition, Bloomberg noted the transaction came at a time when cheap copycat drugs started falling and competition for Teva's top-selling branded medicines rose.

Meanwhile, Teva continues to search for a new CEO after Erez Vigodman resigned last month. The incoming CEO will certainly have his hands full and has to deal with Teva's debt load, which stood at $35.8 billion as of the end of 2016. Perhaps the bigger concern is the fact that as of Thursday's morning, Teva's market share stood at $32.52 billion.

Related Links:

Risks For Teva Remain As CEO Search Continues

Is Teva's 4% Dividend Yield Safe?
________
Image Credit: By Raysonho @ Open Grid Scheduler / Grid Engine - Own work, CC0, via Wikimedia Commons

Posted-In: Bloomberg CalcalistBiotech News Health Care Movers Media General Best of Benzinga

 

Related Articles (TEVA + AGN)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

18 Stocks Moving In Thursday's Pre-Market Session

A Peek Into The Markets: U.S. Stock Futures Edge Higher; Yellen Speech In Focus