Teva falls after Leerink cuts rating on shares

Israel's Teva Pharmaceuticals (TEVA) is retreating after the stock was downgraded to Market Perform from Outperform by Leerink Swann analyst Jason Gerberry. In a note to investors earlier today, Gerberry wrote that the company's revenue from older products is poised to decline, and he is skeptical about the ability to replace that lost revenue. The company's newer products have only "modest" sales potential and probably won't start generating significant sales until 2015 or later, the analyst wrote. Gerberry reduced his target valuation range on the stock to $44-$45 from $47-$48 and recommended waiting for a more favorable entry point before buying the shares. In early trading, Teva slumped $1.54, or 3.70%, to $40.13.

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