Pharmaceutical giant Teva Pharmaceuticals Industries Ltd. (TEVA - Free Report) announced that it has completed negotiations with the U.S. government over violations of the Foreign Corrupt Practices Act (FCPA).
A look at Teva’s year-to-date share price movement shows that the company has underperformed the Zacks classified Generic Drugs industry. Specifically, the stock lost 43.7% during this period, compared with the 39.1% drop for the industry.
Coming back to the latest news, the company has agreed to pay more than $519 million to settle civil and criminal charges of having violated the FCPA bribing government officials of Russia, Ukraine, and Mexico.
We note that the Securities and Exchange Commission (SEC) alleged that Teva had obtained illegal profits worth more than $214 million by carrying out influential payments to government officials in these regions in order to increase its market share, and obtain regulatory approvals, as well as favorable drug purchase and prescription decisions.
As per the settlement, Teva will pay more than $236 million in disgorgement and interest to the SEC. In addition, a penalty of $283 million has to be paid to the U.S. Justice of Department (DOJ) as part of a deferred prosecution agreement. Moreover, the company must retain an independent corporate monitor for at least three years.
We remind investors that in 2012, Teva started a voluntary and comprehensive investigation into its global operations to address government’s specific requests for documents and information. The company had engaged an independent counsel to assist in the investigation, and conducted a global corruption risk assessment and a multi-country survey.
Going forward, we expect investors to focus on further updates from the company related to the settlement.
Teva currently carries a Zacks Rank #4 (Sell).
Key Picks in the Sector
Some better-ranked stocks in the health care sector include Vanda Pharmaceuticals Inc. (VNDA - Free Report) , Cambrex Corp. and Heska Corp. . Each of them sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Vanda and Cambrex posted a positive earnings surprise thrice in the four trailing quarters with an average beat of 56.65% and 19.78%, respectively. Heska, on the other hand, posted a positive earnings surprise in all of the four trailing quarters with an average beat of 301.64%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Pharmaceutical giant Teva Pharmaceuticals Industries Ltd. (TEVA - Free Report) announced that it has completed negotiations with the U.S. government over violations of the Foreign Corrupt Practices Act (FCPA).
A look at Teva’s year-to-date share price movement shows that the company has underperformed the Zacks classified Generic Drugs industry. Specifically, the stock lost 43.7% during this period, compared with the 39.1% drop for the industry.
Coming back to the latest news, the company has agreed to pay more than $519 million to settle civil and criminal charges of having violated the FCPA bribing government officials of Russia, Ukraine, and Mexico.
We note that the Securities and Exchange Commission (SEC) alleged that Teva had obtained illegal profits worth more than $214 million by carrying out influential payments to government officials in these regions in order to increase its market share, and obtain regulatory approvals, as well as favorable drug purchase and prescription decisions.
As per the settlement, Teva will pay more than $236 million in disgorgement and interest to the SEC. In addition, a penalty of $283 million has to be paid to the U.S. Justice of Department (DOJ) as part of a deferred prosecution agreement. Moreover, the company must retain an independent corporate monitor for at least three years.
We remind investors that in 2012, Teva started a voluntary and comprehensive investigation into its global operations to address government’s specific requests for documents and information. The company had engaged an independent counsel to assist in the investigation, and conducted a global corruption risk assessment and a multi-country survey.
Going forward, we expect investors to focus on further updates from the company related to the settlement.
Teva currently carries a Zacks Rank #4 (Sell).
Key Picks in the Sector
Some better-ranked stocks in the health care sector include Vanda Pharmaceuticals Inc. (VNDA - Free Report) , Cambrex Corp. and Heska Corp. . Each of them sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Vanda and Cambrex posted a positive earnings surprise thrice in the four trailing quarters with an average beat of 56.65% and 19.78%, respectively. Heska, on the other hand, posted a positive earnings surprise in all of the four trailing quarters with an average beat of 301.64%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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