Here's Why Teva Pharmaceuticals Dropped 13% in August
Shares of Teva Pharmaceuticals (NYSE: TEVA) fell 13% last month, according to data from S&P Global Market Intelligence. The stock has fallen 86% in the past five years, and the company's market cap has sunk from over $50 billion to below $8 billion in that period.
The reasons are simple: deteriorating financials caused by deep competition in generic markets and risks stemming from the opioid crisis. Investors are increasingly worried about the potential fines Teva Pharmaceuticals may face from lawsuits related to the latter. Johnson & Johnson was told to pay $572 million in Oklahoma alone, Mallinckrodt is considering bankruptcy, and Purdue Pharma has offered to settle all claims for a whopping $10 billion in total compensation.
Image source: Getty Images.
Source Fool.com
