TEVA has Taken Heavy Toll for Bribing and can go down further

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Israeli TEVA (TEVA Pharmaceutical Industries) has damaged the reputation forever. It’s not they bribed Ukrainian (and possibly Russian and Mexican) medical authorities. It is that they were caught doing it. And thus they loose a half of their share prices and were slapped by Moody’s with downgrade of ratings.

Israel along with United States have punished the company with 22 million dollar fee. It seems like a minor addition to previously imposed 500+ millions from the USA. As a result of bribing in Russia the company gained at least 200 millions in gross. The bribe paid however has been 65 millions. Russian Investigative Committee is still investigating the case and may impose his own sanctions on TEVA. It is said they can be as much as 300 millions.

TEVA has lost it’s markets and working pattern. Now the company is trying to cure the wounds with PR by posting articles about “underavaluation” of shares. However high risk of imposing another set of sanctions keeps investor for saving the troubled assets.

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