Double-digit gains from Quest Diagnostics and Allergan PLC helped temper losses in health care, which were entirely attributable to Teva Pharmaceutical (TEVA, Financial). The Israeli-based generic drug manufacturer faced multiple legal battles. The Connecticut Attorney General led more than 40 states in a 500+ page lawsuit against Teva and competitors for generic drug price fixing. A separate generic price fixing criminal investigation may be filed by the Justice Department. Furthermore, Teva settled one of its outstanding opioid lawsuits with Oklahoma for $85 million. Investors extrapolated this settlement figure to other pending opioid lawsuits; Teva management refuted this calculation. Nevertheless, the stock dropped precipitously during the quarter. The position was in the process of being liquidated, which is now complete.
From Bernard Horn (Trades, Portfolio)'s second-quarter 2019 Polaris Global Value Fund shareholder letter.
