Perrigo's Slump Drags Israeli Stocks to Biggest Drop Since 2011

(Bloomberg) -- A record decline for generic drugmaker Perrigo Company Plc dragged Israel’s main stock index to its biggest decrease in more than seven years.

The TA-35 Index closed down 5.1 percent, the biggest session decline since 2011. Perrigo’s loss of 29 percent contributed the most to the fall.

Perrigo's Slump Drags Israeli Stocks to Biggest Drop Since 2011

The sell-off in Tel Aviv follows a slump in Perrigo’s shares in New York on Friday, when they declined by the most since 1994 after Irish tax authorities hit the company with an unexpected $1.8 billion tax assessment. The company said it will fight it.

Teva Pharmaceutical, a drugmaker also traded in Israel, at one point was down 9 percent -- its most in more than a year -- and closed down 8 percent. Bank Hapoalim BM and Bank Leumi Le-Israel BM also slipped at least 3.9 percent each.

  • Perrigo extends drop this year to 53 percent, set for the worst full-year decline since its shares started trading in Israel in 2005.
  • The TA-35 was poised for yearly loss of 4.0 percent, its biggest annual drop since 2011.
Related stories: 
  • On Dec. 22: Perrigo Rout Drags Pharma, Alexion Gets FDA OK: N.A. Health Wrap
  • On Dec. 21: Perrigo Plunges as Brexit Pushes Tax Man to Come Calling 
  • On Dec. 21: Perrigo Pharma to File Appeal Disputing Irish Revenue NoA

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