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Actionable news in TEVA: TEVA PHARMACEUTICAL INDUSTRIES LIMITED AMERICAN DEPOSITARY SHARES,

Teva's Massive Debt Load Just Became an Even Bigger Issue

Teva Pharmaceutical Industries Ltd. (TEVA) stock has plummeted almost 11% Friday following weak second quarter earnings reported Thursday, leaving analysts unsure if the company will be able to pay down its $35 billion-plus debt pile.

Oppenheimer analyst Derek Archila downgraded Teva to "perform" from "outperform" as its stock price fell 31% since the company released second quarter earnings that missed estimates, cut guidance and reduced its dividend.

Archila said there is no longer a "clear path" for the company to return to growth in a "timely manner."

"We do not view Teva as a growth story in the near-to-medium term and continued focus on cost cutting/divestments are required to ensure it meets its debt obligations," wrote Archila in a note Thursday.

As of June 30 Teva's debt pile stood at $35.1 billion, compared to $34.6 billion at the end of March.

Fitch Ratings downgraded...


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