Teva Pharmaceuticals Industries Ltd (ADR) (NYSE:TEVA) has had a tough 2016, with TEVA stock off 44%-plus for the year.

Some of it Teva brought on itself — a mega-merger for generics firm Actavis in 2015 meant it had to sell off some of its drugs and pipeline products to get regulatory clearance in the U.S. and Europe.

It also meant swallowing a very large company and building it into the existing corporate structure. TEVA stock spent most of 2016 sorting this out.

The acquisition also meant that Teva was focusing on developing its generics business over its specialty drugs. Its multiple sclerosis drugs made up 19% of revenue in 2016, but accounted for 41% of profits. In 2017, the company expects that this division will account for 16% of revenue and 36% of profits.

The difference will be made up in Teva’s generics business. And Teva is the world’s largest generics manufacturer. In 2016, generics accounted for 55% of revenues and 41% of corporate profits. The company estimates that in 2017 it will generate 58% of revenues from generics and those sales will account for 49% of profits.

This year is the year that Actavis is fully digested and Teva can deploy its new assets effectively. But the cost was a near-50% plunge in TEVA stock over the past 12 months while Teva sorted this and other challenges out.

The two challenges that top the list are the SEC corruption charges that Teva settled for half a billion dollars in Q4 2016. The other is the fate of its blockbuster central nervous system drug, Copaxone.

This is currently a nearly $4 billion a year drug for the company, but its patent is about to expire and there are at least two generics looking to get in on the action.

These two issues, along with the challenges in absorbing Actavis’ business have been the leading causes for the cratering of TEVA stock. And President Trump’s indication via tweet that he thinks drug prices are too high has put a dent in the broader biotech party that was going on until recently.

But the good news is, this all behind Teva. The case with SEC is settled and the analysts have already assumed the worst regarding Copaxone. If the generics lose their battle to get in on the action, that will be a very big win, and it wouldn’t be especially surprising.

Also, because Teva is the leading generics producer in the US, it’s a sure bet that as Obamacare gets rebuilt, generics will be a driving force to keep medical costs down. That will be a boon for TEVA stock, since it’s the top generics maker in both the U.S. and Europe, with a growing base in emerging markets as well.

The simple fact is, there’s far less downside than upside at this point. And TEVA stock comes with a very healthy 4.2% dividend at this point. That pays for your patience as the turnaround begins.

Richard Band’s Profitable Investing advisory service helps retirement savers outperform the market without losing a minute of sleep along the way. His straightforward style and low-risk value approach has won seven Best Financial Advisory awards from the Newsletter and Electronic Publishers Foundation.