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Teva Surges as Buffett's Investment Stokes Hopes of Recovery

  • Berkshire invests $350 million in world’s top generics maker
  • Stake follows project with Amazon, JPMorgan in health care
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Bloomberg’s Katherine Chiglinsky discusses Warren Buffett cutting his stake in IBM while investing in Teva.(Source: Bloomberg)
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Warren Buffett stoked hopes of a transformation at the world’s biggest generic drugmaker as his Berkshire Hathaway Inc. became a top shareholder weeks after pledging to cut soaring U.S. health-care costs.

Shares of the drugmaker, Israel’s troubled Teva Pharmaceutical Industries Ltd., surged the most in two months after Berkshire disclosed it had bought about $350 million worth of stock.