NEW YORK (TheStreet) -- Shares of Teva Pharmaceuticals (TEVA) - Get Report are down by 4.13% to $58.42 in afternoon trading on Friday, after the company signed a deal to buy Gecko Health Innovations

Gecko Health Innovations is a privately-held company that develops software and product solutions to aid the management of patients with respiratory diseases.

"Teva is committed to optimizing respiratory care through the development of new therapies and novel delivery systems to better serve patients living with respiratory conditions," Teva Chief Scientific Officer Dr. Michael Hayden said in a statement.

The deal "reinforces" the company's position as a leader in respiratory care, Teva said.

Financial terms of the deal were not made available. 

Separately, TheStreet Ratings team rates TEVA PHARMACEUTICALS as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate TEVA PHARMACEUTICALS (TEVA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has increased to $1,480.00 million or 40.55% when compared to the same quarter last year. In addition, TEVA PHARMACEUTICALS has also vastly surpassed the industry average cash flow growth rate of -10.34%.
  • The gross profit margin for TEVA PHARMACEUTICALS is rather high; currently it is at 64.78%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.85% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • TEVA PHARMACEUTICALS's earnings per share declined by 27.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEVA PHARMACEUTICALS increased its bottom line by earning $3.56 versus $1.50 in the prior year. This year, the market expects an improvement in earnings ($5.33 versus $3.56).
  • You can view the full analysis from the report here: TEVA