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Pharma & Biotech

Teva Pharmaceutical tanks in Tel Aviv after third quarter earnings

Yesterday, Allergan said it would start to sell off its nearly 10% stake in Teva

Shares in generic drugs group Teva Pharmaceutical Industries Limited (NASDAQ:TEVA) tanked nearly 14% in Tel Aviv as it posted earnings that showed a 26% fall from last year.

Profit for the three months to end September fell to US$1.01bn compared to US$1.36bn in the same period in 2016.

READ: Teva Pharmaceutical sells women’s health businesses for US$1.38bn

Consensus among analysts was for US$1.04 per share against the US$1 per share posted by the company.

But the revenue for the third quarter was up 0.9% to US$5.61bn, compared to US$5.56bn last year.

Yesterday, Allergan (NYSE:AGN) released its third quarter numbers and said it would begin to sell off its nearly 10% stake in Teva.

The latter (Teva) has struggled and lost 60% of its value so far this year. The chief executive stepped down in February.

READ: Teva Pharmaceutical names Danish industry veteran Kare Schultz as its new chief executive

Allergan sold its generics business to Teva in August, 2016 for a whopping US$33bn in cash and 100 million Teva shares, worth around US$5.3bn at the time.

Under the terms of the deal, Allergan agreed to hold the shares for at least one year.