Aside from the now universally hated scandal-ridden basket case Valeant (NYSE:VRX), Teva Pharmaceuticals (NYSE:TEVA) is the worst performing large cap pharma stock since 2015. It has lost 57% of its value from top to bottom, so far. One would think there'd be a few major scandals similar to Valeant in such a fall from grace. Some lawsuits yes, but nothing all that scandalous in the scheme of things. In fact, from the end of 2015 with the stock right near its all-time highs of $70 to the end of 2016, by which time shares had already been cut in half, top line revenues rose 11.5%. Gross profit rose 4.4%.

True, earnings are way down, but that's a result of bad luck and bad timing. Non-recurring expenses did it in for the generic giant in 2016, posting a huge $2.5 billion in one-time expenses due to a combination of legal settlements, goodwill impairment, and restructuring costs associated with reorganization post Actavis merger. While yes, bad timing is a legitimate reason for a stock to fall, even fall far, a $40 billion loss in market cap in two years is a bit much for a global leader with growing revenues short of a huge scandal. (Teva was involved in a $519 million bribery settlement last year, but nothing like the double counting fiasco that brought Valeant to its knees.) The fundamentals of the company are still sound and markets are misinterpreting the bottom line on Teva.

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