Teva Pharmaceutical Industries is "a drug company you absolutely need to avoid," Jim Cramer said Thursday.
A few years ago, the "Mad Money" host liked Teva and his charitable trust even owned the stock. The trust closed out of its position in 2010, though, when he noticed the drug company was struggling. Since then, the stock has dropped 22 percent to around $39 a share, while the S&P 500 has climbed 29 percent over the same time period. Cramer thinks the stock could continue to fall, which is why he put it on the "Sell Block."
So what happened?
"Teva made a killing a huge branded drugs went off patent and they were able to move in and take huge share with generic versions. This company was an early mover in the generic space and they were savvy and quick in getting generic indications approved," Cramer said. "But now Teva has two main problems: one with the generic side of the business and one with the branded side."