Source: Tradingview
Investment Thesis
Teva Pharmaceutical (TEVA) recently announced that it has entered into a definitive agreement to sell its Paragard contraceptive device to CooperSurgical for $1.1 billion (this transaction is expected to close before the end of 2017). The company is reversing its previous strategy of acquisition-based growth so as to reduce its massive debt load of about $35 billion. While the company faces very intense competition in the generic segment and struggles to pay off its debt, the stock will continue to face selling pressure.