Teva shares tumble after drug maker cut 2016 profit and revenue outlook
Teva Pharmaceutical Industries said Tuesday it has set aside about $520 million to cover settlements with U.S. authorities relating to bribery allegations in foreign countries.
In its third-quarter earnings report, Teva, with North America headquarters in North Wales, Montgomery County, said it was in "advanced discussions" with the Justice Department and Securities and Exchange Commission about violations of the Foreign Corrupt Practices Act (FCPA) related to conduct in Russia, Mexico, and the Ukraine in 2007 to 2013. Teva said "none of the conduct" involved its U.S. business.
The Israeli drug maker said it has terminated "problematic business relationships with third parties," fired some employees, overhauled management of several subsidiaries, and stopped doing business in some countries.
In earnings, Teva cut its 2016 revenue forecast to $21.6 billion to $21.9 billion from $22 billion to $22.5 billion, due to launch delays for several drugs. Third-quarter revenues rose 15 percent, mainly due to inclusion of sales from its $40.5 billion acquisition Allergan's generics business in August.
Teva shares fell 8.77 percent, or $3.60, to $37.43.