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Najarian: Buy this drug stock into Valeant plunge

Jon Najarian, Najarian Family Office
Adam Jeffery | CNBC
Jon Najarian, Najarian Family Office

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.