Allergan Planning Sale of its Teva Stock
For the third quarter of 2017, Allergan reported an operating loss of $4.02 billion, $1.3 billion of which is due to the depreciation of its Teva securities.
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Pharma Company Allergan PLC is planning to sell 100 million shares it received from Teva Pharmaceutical Industries Ltd. as part of Teva's 2016 acquisition of Allergan's generic arm Actavis.
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According to the deal’s terms, Allergan could not sell the shares for 12 months, a period that ended on August 2. At the time, Teva paid $33 billion in cash and the rest with a 9.8% stake in the company, then worth $5.3 billion.
Teva
Allergan announced the sell, estimated to occur over a few quarters, in a conference call with investors today after publishing its quarterly reports.
For the third quarter of 2017, Allergan reported an operating loss of $4.02 billion, $1.3 billion of which was due to a depreciation of its Teva Holdings. Since July 2015, Teva’s stock fell 80%.
In past statements, Allergan said it views the Teva securities it received as a short-term investment, and that it intends to sell the shares once the lockup period expired.
