Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) announced it has completed the sale of Plan B One-Step® and Teva’s value brands of emergency contraception to Foundation Consumer Healthcare in a $675 million cash transaction.
“Today’s announcement, coupled with the recent completion of the sale of PARAGARD®, exhibits Teva’s commitment to divest non-core businesses to ensure that we are even more focused and efficient in this rapidly changing and highly-competitive environment,” stated Michael McClellan, interim CFO of Teva. “Teva is extremely pleased to complete the sale of Plan B One-Step® and value brands of emergency contraception, which brings a significant influx of cash into the organization to further progress our ability to repay term loan debt while also providing a clear path forward for these important emergency contraception products to continue to be available.”
Teva continues to progress and actively pursue additional divestiture opportunities, including the previously announced agreement with CVC Capital Partners for the sale of the remaining assets of its global Women’s Health business. Teva expects to generate at least $2.3 billion in total proceeds from the sale of these businesses, as well as additional asset sales to be executed by year end 2017.
Shares of Teva are currently falling nearly 19% to $11.32 in Thursday’s trading session. TEVA has a 1-year high of $43.46 and a 1-year low of $10.85. The stock’s 50-day moving average is $15.98 and its 200-day moving average is $24.47.
On the ratings front, Teva stock has been the subject of a number of recent research reports. In a report released today, Cowen analyst Ken Cacciatore maintained a Hold rating on TEVA, with a price target of $18, which represents a potential upside of 50% from where the stock is currently trading. Separately, on the same day, J.P. Morgan’s Chris Schott maintained a Hold rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ken Cacciatore and Chris Schott have a yearly average return of 0% and a loss of -4.4% respectively. Cacciatore has a success rate of 36% and is ranked #3225 out of 4702 analysts, while Schott has a success rate of 38% and is ranked #4294.
Overall, 3 research analysts have rated the stock with a Sell rating, 14 research analysts have assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $21.12 which is 76.3% above where the stock opened today.
Teva is a global pharmaceutical company, which provides patient-centric healthcare solutions. It operates through two segments: Generic Medicines and Specialty Medicines. The Generic Medicines segment includes chemical and therapeutic equivalents of originator medicines in a variety of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. The Specialty Medicine segment engages in the provision of core therapeutic areas of central nervous system medicines.