NEW YORK (AP) — Shares of Teva Pharmaceutical Industries Inc. slid after the drugmaker reported it swung to a second-quarter loss and slashed its outlook as competition in the U.S. cuts into revenue.
The stock fell $7.22, or 23 percent, to $24.03 in afternoon trading Thursday. Shares have lost more than half their value in the past year.
The Israel-based generic drug maker lost just under $6.04 billion, or $5.94 per share, in the second quarter compared with a profit a year ago. The latest quarter includes a goodwill impairment charge of $6.1 billion related to its U.S. generics unit.
It reported an adjusted profit of $1.02 per share. Analysts polled by FactSet expected $1.06 per share in profit, on average. Revenue rose 12.8 percent to $5.69 billion thanks to an acquisition, but missed the average Street estimate of $5.72 billion.
"All of us at Teva understand the frustration and disappointment of our shareholders in light of these results," said interim President and CEO Dr. Yitzhak Peterburg. He said price erosion and increase in generic drug approvals in the U.S. were partly to blame for the results. Peterburg was named the interim chief in February after Erez Vigodman stepped down.
Looking ahead, the company expects its full-year adjusted profit to range from $4.30 to $4.50 per share, down from a range of $4.90 to $5.30 per share.
Teva also slashed its quarterly dividend by 75 percent to 8.5 cents from 34 cents in the first quarter. The company will pay the dividend Sept. 14 to shareholders of record Aug. 29.