Warren Buffett's seal of approval was helping restructuring drugmaker Teva Pharmaceutical Industries Ltd. (TEVA) on Wednesday.
Teva's ADRs jumped 4.1% to $21.13 in early trading on Wednesday, May 16, after Buffett's Berkshire Hathaway Inc. (BRK.A) revealed in its 13F filing on Tuesday after the close that it had doubled its stake in the company in the first quarter.
Berkshire Hathaway increased its stake in Teva to 40.5 million shares, or about $692.8 million, as of the end of March, up from 18.9 million shares worth a total of $357.7 million as of the end of 2017. Berkshire now owns close to 4% of Teva.
Berkshire's 13F filing comes as Petach Tikva, Israel-based Teva is in the midst of a dramatic restructuring.
The Petach Tikva, Israel-based firm in December unveiled a restructuring plan, which includes the reduction of 14,000 jobs globally over the next two years, aimed at lowering its total cost base by $3 billion by the end of 2019 from the estimated base of $16.1 billion for 2017.
Teva president and CEO Kåre Schultz said on an earnings call in May that the restructuring is "very much on track."
The company on May 3 unveiled first-quarter numbers that surpassed analysts' expectations and increased guidance.
Teva reported non-GAAP earnings per share of 94 cents, down 11.3% from the year-ago period. Revenue declined 10% to $5.1 billion. Analysts had forecast, on average, adjusted EPS of 66 cents on revenue of $4.81 billion, according to FactSet Research Systems.
Shares of Teva are down 37% over the last year, but up almost 12% year to date.
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