Teva Pharmaceutical Industries Ltd. opened Sunday morning with another hit. The Israeli giant plummeted 17.6% down on the Tel Aviv Stock Exchange after losing 17.79% on Thursday.
The company announced on Thursday it would be firing 7000 employees and ceasing operations in 45 countries
after reporting a $6 billion second quarter net profit loss results.
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Moody’s Investors Service downgraded the company from Baa2 to Baa3, one level above junk, which makes credit more expensive for the enterprise.
Drama in Teva: Cutting 7,000 jobs in 45 countries ; share price plunges
Credit Suisse has also reacted and downgraded Teva from Outperform to Neutral and cut the target price from $39 to $25.
The world’s largest maker of generic drugs announced earlier this month, that its CEO Erez Vigodman was stepping down, after just three years, due to massive losses.
The company appointed its chairman, Yitzhak Peterburg, as interim CEO.
Teva named in a civil lawsuit filed earlier this month by twenty American states for allegedly entering into illegal conspiracies to raise prices on two conventional generic drugs. Another six drug makers named in some lawsuit.
