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Najarian: Buy this drug stock into Valeant plunge

Jon Najarian, Najarian Family Office
Adam Jeffery | CNBC

CNBC "Halftime Report " trader Jon Najarian purchased shares of Teva Pharmaceutical Industries for his model portfolio Tuesday after spotting unusual options activity.

The company is a market leader in generic drugs with $19.7 billion in sales during 2015. Biotech and health-care stocks were lower Tuesday on negative industry sentiment after troubled Valeant Pharmaceuticals posted worse-than-expected financial guidance. Valeant shares fell by nearly half after the company's report.

Here's why Najarian bought the drug stock.