Bloomberg News

Teva Tumbles to Lowest Since 2006 on EU Review of Cephalon

September 25, 2011

(Adds analysts’ comments from fourth paragraph.)

Sept. 25 (Bloomberg) -- Teva Pharmaceutical Industries Ltd. slumped to the lowest level since December 2006, narrowing the gap with the U.S.-traded shares, after European regulators said they need more time to review its bid for Cephalon Inc.

The stock of the world’s largest maker of generic drugs declined 3.1 percent to 130.30 shekels, the equivalent of $35.19, at the 4:30 p.m. close in Tel Aviv. The New York-traded shares lost 8.6 percent last week to $35.26.

The European Commission on Sept. 23 extended its antitrust review of Teva’s bid for Cephalon, setting a new deadline of Oct. 13. Teva’s $6.8 billion acquisition of the U.S. biotechnology company was supposed to be concluded by the end of the third quarter, according to Natali Gotlieb, a Tel Aviv-based analyst at IBI-Israel Brokerage & Investments Ltd.

“As long as the deal isn’t closed, it will take longer for Teva to include Cephalon’s earnings,” Gotlieb said by telephone.

Investors also are concerned that 2011 earnings may miss forecasts, said Jonathan Kreizman, an analyst at Clal Finance Brokerage Ltd. in Tel Aviv. Teva is forecast to earn $4.84 per share for the year, according to the median estimate of eight analysts compiled by Bloomberg.

The shares of Petach Tikva, Israel-based Teva have tumbled 30 percent this year amid concern about the future of its best- selling multiple sclerosis drug Copaxone, compared with a 20 percent drop for the benchmark TA-25 Index. Copaxone, an injected treatment that accounted for 23 percent of Teva’s second-quarter revenue, is facing competition from the first approved multiple sclerosis pill from Novartis AG.

--Editors: Susan Lerner, Alex Devine

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at

To contact the editor responsible for this story: Claudia Maedler at

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