Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA) is having a great day in the market today, and for good reason. News broke that Warren Buffett’s fund has made the decision to invest int he company, leading to excitement among investors and sending the stock upward. Today, we’ll talk about the investment, what we’re seeing from TEVA, and what we’ll be watching for ahead.
Buffett Invests In TEVA
As mentioned above, Teva Pharmaceutical Industries is having an overwhelmingly strong start to the trading session this morning after it was disclosed that Warren Buffett’s fund, known as Berkshire Hathaway Inc., disclosed that it has invested in the company.
According to a 12F filing that was released after the market close yesterday, Buffett’s fund has purchased 18.9 million shares of TEVA, with a total investment amount of $357.695 million throughout last year’s fourth quarter. Considering the fact that TEVA currently has 1.015 billion shares, Berkshire Hathaway’s position in the stock represents a 1.86% stake.
This proved to be overwhelmingly positive news. After all, investors in Teva Pharmaceutical Industries have been feeling pain as of late due to pricing pressure for generic drugs in the United States and throughout North America. Not to mention, the company has seen an erosion of sales with regard to Copaxone, a treatment for multiple sclerosis. Unfortunately, generic competition is weighing heavy on sales of the treatment. Nonetheless, with Berkshire Hathaway investing in the company, investors are excited to see what comes next.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, even with various pressures hitting TEVA at the moment, Berkshire Hathaway sees value in the stock. So, it’s no surprise to see that the stock is making a run for the top. Currently (9:27), TEVA is trading at $21.12 per share after a gain of $1.79 per share or 9.26% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TEVA. In particular, we’re interested in seeing what the company does to address the price pressures its facing as well as the competition we’re seeing on Copaxone. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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