Teva, the world’s largest generic drugs company, moved on Thursday to resolve its exposure to the credit crisis with a $26m writedown on impaired assets and a successful bank refinancing of debts to smooth its takeover of Barr of the US.

The Israeli-based group, which posted third-quarter net income up 21 per cent to $637m, reduced its portfolio of auction rate securities, one of the biggest casualties of the credit crunch, from $445m to $261m after writedowns, sales and a groundbreaking $100m compensation settlement with its broker.