Teva Scrambles to Reassure Investors of Its Credit Status
Despite pharma’s relative insulation from the credit crisis, things have gotten so bad out there that some companies feel the need to issue press releases reassuring everyone that yes, the company still has a bank account, and yes, the bank managers are letting them borrow some money. Check out these cryptic statements from Israeli generics maker Teva.
- The first one simply states that after Barr’s acquisition by Teva, Barr’s bank facilities will remain in place.
Not get better — stay the same. This is news? In times like these, I guess so. The move adds $1.9 billion in debt onto Teva’s books, plus a revolving unused credit line of $300 million. Not stated in the press release: Any explanation of why a company that is about to get a whole lot bigger can’t get its credit lines improved. Hmmm.
- The second press release states that Teva received $100 million in settlement of a lawsuit over auction rate securities.
What’s the news here? Well, Teva doesn’t say how much it paid for those ARS-es, which you’d need to know in order judge whether this settlement is a resounding success or a humiliating capitulation. Hmmm, again.
BNET readers will remember that Bristol-Myers Squibb also took a bath on those once non-risky cash vehicles.
And note that Teva put out both statements on the same day.The company usually generates its own news at the rate of one or two statements a week. Methinks the company doth protest too much …
Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.
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