Morning Commentary: Teva up a little in line with shares after posting decent earnings

By Rebecca Melvin

New York, May 9 – Teva Pharmaceutical Industries Ltd.’s 0.25% convertibles were up a bit, in line with the notes’ underlying shares, early Monday after the Petach Tikva, Israel-based pharmaceutical company reported better-than-expected quarterly earnings and reaffirmed that it expects to close its $40.5 billion acquisition of Allergan’s generic drug business in June.

The Teva 0.25% convertibles due 2026, or C bonds, traded at 128.625, which was up 4 points from Friday, according to Trace data.

Teva American Depositary Receipts were up $2.66, or 5%, to $52.83 in strong volume.

Teva reported non-GAAP gross profit for the first quarter of $3 billion, which was down 2% from the first quarter of 2015. Revenue came to $4.8 billion, which was down 3% from the year-earlier period, the company said.

Elsewhere, the market was trading quietly, market sources said.

“Deader than dead,” said one New York-based trader regarding Monday’s convertibles market.

In the broader markets, the major U.S. equity indices slipped into negative territory after starting the session in the green. But they were last off their lows.

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