Teva Pharmaceuticals just saw its shares tank after reporting worse than expected earnings results for the second quarter.
Shares dropped as much as 18% on Thursday morning after the pharma giant missed on both earnings and revenue. The stock was already down roughly 14% before the market even opened.
The Israeli-based company, that has called itself the biggest producer o generic medicines, reported EPS of $1.02 which was less than the $1.06 expected by the Street. Revenue at $5.686 billion was $300 million lower than what analysts had been expecting.
According to the company’s interim CEO Yitzhak Peterburg, the losses were blamed on poor performance as well as a saturation of the U.S. generic drug market.
“[Teva] experienced … greater competition as a result of an increase in generic drug approvals by the U.S. FDA,” Peterburg said in the earnings release. According to him, it was “customer consolidation” that hurt sales in the U.S.
The company’s former CEO Erez Vigodman had resigned in February when reports surfaced that the Israel Police were investigating bribery. The company allegedly had paid bribes into hundreds of millions of dollars and had falsified documents.
The pharmaceutical company lost its CEO on February 7 when Erez Vigodman resigned suddenly amid reports of a bribery investigation by the Israel Police. The biggest company in Israel, Teva allegedly paid bribes into the hundreds of millions of dollars and falsified documents in order to hide them.
Disclaimer: We have no position in Teva Pharmaceutical Industries Ltd (NYSE: TEVA) and have not been compensated for this article.