NEW YORK (TheStreet) -- Shares of Teva Pharmaceuticals (TEVA) - Get Report are advancing 1.59% to $49.30 in pre-market trading on Tuesday after agreeing to sell a portfolio of U.S. generic products to Australia's Mayne Pharma Group (MAYNF) for $652 million.
The agreement is the last of Teva's asset divestitures to gain antitrust approval for its planned $40 billion purchase of Allergan's (AGN) generic drugs portfolio.
Mayne Pharma will purchase 37 marketed drugs and five additional drugs that are in development, Bloomberg reports. The acquired treatments are expected to generate sales of $237 million in 2017.
The company will fund the acquisition by extending an existing debt facility and by selling roughly $653 million in stock.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Teva's strengths such as its increase in net income, attractive valuation levels, expanding profit margins, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: TEVA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.