NEW YORK (TheStreet) -- Shares of Teva Pharamaceuticals (TEVA) - Get Report are advancing 0.24% to $55.28 this morning after the Israeli pharmaceuticals company received clearance from the Federal Trade Commission to purchase Allergan's (AGN) generics business.
Teva will divest 79 generic drugs to 11 rival firms as part of the agreement, marking the largest ever drug divestiture order in an FTC pharmaceutical merger, Reuters reports. Products being sold include antibiotics, weight-loss drugs and oral contraceptives, among others.
"The FTC's settlement safeguards the competitive availability of these medications for patients across the country who depend on them," said Debbie Feinstein, director of the FTC's Bureau of Competition, in a statement according to Reuters.
The $40.1 billion transaction is expected to close next week.
Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:
We rate TEVA PHARMACEUTICALS as a Buy with a ratings score of B. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, 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. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: TEVA