Wells Fargo expects Teva's (TEVA) acquisition of Allergan's (AGN) generics unit to close, despite the new inversion regulations proposed by Treasury. However, because the closing of the Teva-Allergan deal has been delayed until June versus Wells' Q1 estimate, the firm cut its 2016 EPS estimate for Teva to $5.75 from $6.20 and reduced its 2017 EPS estimate for the company to $6.50 from $6.95. Wells adds that it's unclear to what extent new earnings stripping regulations will impact Teva's financial results. Wells believes that the generic drug pricing environment will be less favorable in coming years, but it says that Teva is "well-positioned" due to its strong pipeline. The firm remains upbeat on the stock's longer term outlook and keeps an Outperform rating on the shares.