Teva Stares Into Abyss as It Slashes Forecast, Dividends
- Shares plummet by most since February 1998 in U.S. trading
- Drugmaker to retreat from markets, close factories, cut jobs
This article is for subscribers only.
Teva Pharmaceutical Industries Ltd., which has been without a permanent CEO for six months, revealed the full extent of the challenges facing its next leader by announcing more job cuts, a retreat from 45 markets and a steep cut to its dividend after slashing its earnings goals for the second time this year.
The stock slumped the most in almost two decades and the yield on Teva’s bonds jumped after the drugmaker also cautioned that it may breach some debt covenants this year if sales don’t rise. The Petach Tikva, Israel-based company said its profit may fall to as low as $4.30 a share for the year.