Teva Pharmaceutical Industries Ltd. (TEVA) dropped to the lowest level since January 2007 after a U.S. court required the world’s largest generic drugmaker to honor a hepatitis-case accord with Baxter International Inc. (BAX)
The shares slumped 1.3 percent to 136.50 shekels at the 4:30 p.m. close in Tel Aviv. Delaware Chancery Court Judge Travis Laster said in a Sept. 15 ruling that an arbitration panel finding that Teva was bound by an agreement with Baxter to cover all liability tied to claims that tainted vials of propofol caused colonoscopy patients to develop hepatitis is “valid and enforceable.”
“The news on Baxter is a minor setback, but adds to the negative sentiment about the share,” Jonathan Kreizman, an analyst at Clal Finance Brokerage Ltd. in Tel Aviv said today by telephone.
The stock has tumbled 27 percent this year, erasing 46.6 billion shekels ($12.6 billion) from the Petach Tikva, Israel- based company’s market value, according to data compiled by Bloomberg, amid concern about the future of its best-selling multiple sclerosis drug.
Copaxone, an injected treatment that accounted for 23 percent of Teva’s $4.21 billion revenue in the second quarter, is facing competition from the first approved multiple sclerosis pill from Novartis AG. Teva on Aug. 1 said laquinimod, its hoped for successor to the older multiple sclerosis drug, failed to reduce relapses more than placebo in a clinical trial.
Kreizman yesterday cut his recommendation on Teva to “market perform,” saying second-half results may “disappoint the market” and that investors have been “overly optimistic” about the introduction of a generic version of Sanofi’s blood thinner Lovenox.
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