Due to huge losses in the pharmaceutical company in recent years, the American investment company owned by Warren Buffett, Berkshire Hathaway, sold the shares it held at a loss price
American investment giant Berkshire Hathaway, which is controlled by billionaire and CEO Warren Buffett, informed its investors that it liquidated its holdings in Israeli generics giant Teva during the fourth quarter of 2021, leaving it at a loss.
The holding of Teva shares by the American investment house was revealed by him towards mid-February 2018, a period in which Teva began reorganizing alongside layoffs mainly due to high debts, and experienced the largest short sale (bet against the company and its stock) in the market.
Its holding in Teva’s shares was then estimated at about $ 358 million, and on Monday the investment house revealed that it had sold 42.79 million shares in the Israeli pharmaceutical company, without specifying the sale price.
Since the investment house’s holding in the Israeli generics share, which is traded on the Tel Aviv and New York US stock exchanges worth NIS 31 billion, was revealed, and until the end of the fourth quarter of 2021, its share fell by 58.2%.
“Buffett has apparently given up on holding the company, which despite the streamlining moves does not give the impression in the American capital market that its stock is on the rise in the near future,” explains Uri Hershkovitz, life sciences analyst at Psagot Investment House.
In recent financial reports, Teva has reported an incredible 52% growth in the drug AUSTEDO, for the treatment of Tardive Dyskinesia, which is a movement caused as a side effect of long-term use of antipsychotic drugs, along with 72% growth in the drug AJOVY. In migraine, but on the other hand we saw a strong erosion in the flagship drug ‘Copaxone’ and inhalers.