Health and Healthcare
Teva Pharmaceutical Shares Plunge on CEO Resignation
Published:
Last Updated:
After denying rumors earlier this week that its CEO was considering resigning, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) announced Wednesday morning that President and Chief Executive Jeremy Levin indeed will depart from the company. Levin has been CEO since May of 2012.
Chief Financial Officer Eyal Desheh will serve as president and CEO of Teva on an interim basis, effective immediately, the company said. Desheh has been with Teva for 12 years.
The Israel-based generic-drug maker announced earlier this month its plans to reduce its global workforce by 10%, or about 5,000 employees, part of a cost-cutting plan as it prepares for lower-priced competition to its best-selling multiple sclerosis drug, Copaxone. Teva’s sales and earnings have declined this year, in part due to weakness in its core generics business in the United States and Europe.
“I categorically deny the rumours suggesting that I am considering resigning from the management of Teva,” Levin said on Monday, following reports of strong differences of opinion between Levin and Chairman Phillip Frost over the implementation of Teva’s new strategy. But that was then.
The company is scheduled to report its third-quarter results on Thursday. The consensus forecast calls for $1.26 per share in earnings and $5.00 billion in revenue. That compares to $1.28 per share on $4.97 billion in the same period of last year. On Tuesday, CNBC’s Jim Cramer advised investors to take profits.
But the share price was down about 5% in premarket trading Wednesday to $39.00. The 52-week range is $36.63 to $42.83. Analysts had a mean price target of $44.16 before this news broke.
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.