TCW Fund Exits Teva After Shares Outgrow Its Valuation Tests
The fund cited Teva’s share appreciation, branded-drug growth and improved margins as it explained its second-quarter exit.
TCW Relative Value Mid Cap Fund sold its Teva Pharmaceutical Industries position in the second quarter of 2026, saying the stock’s rise left it outside the fund’s five valuation criteria. The letter did not disclose the position’s size or sale price.
The fund said Teva had moved away from low-margin generics toward branded and innovative medicines. It pointed to growth in Austedo, Ajovy and Uzedy, saying a changing product mix improved margins and earnings quality.
TCW also cited Teva’s debt reduction, resolution of opioid litigation and cost restructuring. The fund said concerns around Medicare price negotiations for Austedo eased after the outcome proved less severe than investors feared.
The letter said Teva launched its “Pivot to Growth” strategy in May 2023 and that consistent delivery against targets made growth more predictable. It also credited clinical successes with drawing attention to the company’s internal research pipeline.
Teva shares traded at $39.36 at 13:34:57 UTC on Oct. 1, down 0.51% from the previous close.
This article was produced with the help of AI technology.
Source: Yahoo Finance
