- Warren Buffett's Berkshire Hathaway on Wednesday disclosed a 1.86% stake in Teva Pharmaceuticals.
- Shares of the Israeli company soared more than 10% on the news.
Shares of Israeli drugmaker Teva Pharmaceuticals exploded more than 10% Thursday after Warren Buffett's Berkshire Hathaway disclosed it had bought a stake in the company.
The Nebraska-firm bought 18.9 million shares of Teva - or 1.86% of the company - in the fourth quarter, according to regulatory documents filed Wednesday evening. The stake is worth about $378 million at Thursday's prices.
Berkshire's investment was made public through a form known as 13F, which is a required quarterly disclosure for large investors. Because they are required only four times a year, it's not clear exactly when Berkshire invested.
Teva is one of the largest pharmaceutical companies in the world, specializing in generic alternatives to name-brand drugs, especially antibiotics.
The stock has performed well in the last six months, gaining 45%, but is still trading at less than half its highs from a year ago. Shares lost more than half their value in August 2017 after the company slashed its dividend and guidance, citing intense competition for generic drugs.
Warren Buffett is known for his buy-and-hold strategies of stocks he buys, and Teva has plenty of room to grow back to its previous highs.