The Ticker: Teva Shares Plunge to a Record 16-year Low

TASE closes down in late trading

A Teva Pharmaceutical Industries Ltd. logo at the entrance to the company's factory in Godollo, Hungary.

Teva shares plunge to a record 16-year low

Shares of Teva Pharmaceuticals closed at 48.70 shekels  in Tel Aviv Wednesday ($13.89) and dropped below $14 in New York later in the day, reflecting a market capitalization of $14 billion. The fall may stem from investor fears of a weak financial report due to price pressures in the U.S. generics market. This raises concerns about the company’s ability to repay $8 billion in debt by the end of 2018. There is speculation that Teva will have to further cut dividends or raise additional capital and thus dilute their investors’ holdings. Wednesday’s market cap reflects a 16-year low for Teva. Over the past day, two figures reinforcing investors’ fears were published: Novartis group company Sandoz published third-quarter results showing a 13% decline in U.S. generics sales due to increasing competition and Symphony Health Solutions reported a 3% drop in U.S. prescriptions for Teva products in the third quarter. (Yoram Gabison)

TASE closes down in late trading

The Tel Aviv Stock Exchange finished Wednesday with losses after Wall Street opened in the red, and after it spent most of the day trading nearly unchanged. The blue-chip TA-35 index lost 0.3% to close at 1,438 points, while the broader TA-125 index also lost 0.3%, to close at 1,310 points. Bank shares gained 0.2%, led by Israel’s largest banks, Bank Hapoalim, up 0.5%, and Bank Leumi, up 0.2%. Oil and gas shares dropped 2%. Notable shares included the Delek Group, down 5.4% on turnover four times the average, after declining 3.4% over the previous two trading days. Delek Drilling and Delek Energy both dropped 3.5%. Teva Pharmaceutical Industries fell 4.1% to a new low, and was trading at below $14 a share on Wall Street late in the day. The company’s value has dropped by more than 68% over the past 12 months. Shares of Pluristem rose 8.2%, putting it up 31% since the start of the month. Shagrir Systems gained 6.4% on the news that it had signed an agreement to operate hourly car rental company Car2Go in Malta. Insuline Medical gained 22% on high turnover. The share price gained 44% since the start of the week on news of following its merger with a nonbank lender. (Guy Erez)