Troubled Teva feels the heat from Israel, bondholders as shares continue to dive

Teva is feeling it from all sides these days.

Shares are continuing to sink as analysts downgrade the stock, yes—but the company is also under pressure from bondholders, wannabe stakeholders and its home country of Israel.

The Israeli government has urged Teva, the country’s largest company, to return jobs and operations to Israel and hinted that it may be willing to help bail the company out of its current struggles, Bloomberg reports.

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Officials have also recently pressed Teva to delay 350 domestic job cuts until October and suggested the company cut costs by targeting management rather than lower-level staffers.

“Teva’s Israeli workers don’t need to pay the price for failed investments abroad,” Economy Minister Eli Cohen said in a Monday statement seen by the news service. “The Ministry of Economy will discuss with the company the return of activity to Israel and help it get out of the crisis it is in.”

Teva, though, needs all the cost-slashing help it can get. It’s currently shouldering a $35 billion debt burdenthanks to a disastrous 2016 purchase of Allergan’s generics unitand it’s cautioned investors that it may breach its debt covenants later this year.

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Bonds have nosedived accordingly, and now, “the pressure on the company to deliver bondholder-friendly measures has increased further given the significant debt maturities,” bondholder Bastian Gries, head of investment-grade credit at ODDO BHF Asset Management GmbH, told Bloomberg, adding that “Teva could increase the disposal program or cost-cutting measures, but the toolbox does not appear ample overall.”

Shares, meanwhile, continued to plummet on Monday after Morgan Stanley’s David Risinger downgraded Teva’s stock to underweight and cut his price target to $16 from $36.

“Declining earnings power plus high leverage equal a long turnaround,” he wrote in a note to clients. “We underappreciated the risk of generics pricing pressure to Teva's earnings and dividend, and we expect Teva to continue to underperform given overhangs.”

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He’s not the only one. Teva itself slashed its full-year guidance by more than $1 billion last week with its second-quarter earnings announcementthe second time this year it’s done so. The move helped kick off the downward share spiral, which is one that could leave the company vulnerable to takeover; buyers are offering to shell out $5 billion in exchange for stakes of 15% to 20%, local newspaper Haaretz reported earlier this week.