BiolineRX raises $24m in Nasdaq offering
Teva CEO Dr. Jeremy Levin told "Yediot Ahronot": Future expansion will be based on internal growth engines - organic growth.
In an interview with "Yediot Ahronot", Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) president and CEO Jeremy Levin was asked if the company had plans to renew its acquisitions campaign. He said, "No. Teva already has an amazing global reach, with activity in scores of countries, and 46,000 employees. 74 facilities can produce 100 billion tablets of different drugs. Teva's future expansion will be based on internal growth engines. It will be organic growth."
Levin says that Teva relies on Israeli research to support hybrid drugs (improving and combining current generic drugs). "We will soon announce ten combined drugs, an unprecedented record. This is a multibillion dollar business."
Is there a medical segment in which Teva will specialize in under your management?
"Teva should focus primarily on neurology, the central nervous system, and the brain. We will also strongly develop innovative drugs for women's diseases, and non-prescription drugs." responded to claims that the company paid too few taxes, and he spoke about other issues.
Last week, "Globes" examined Teva's tax payments in the past ten years, 2003-12, and found that the company paid $1.9 billion in taxes on $17.2 billion profit in this period an effective tax rate of just 10.7%. In 2012, for the first time in at least ten years, Teva paid an negative tax rate of minus 7.5% - it received a rebate of $137 million.
Excluding Teva's taxes on its Israeli operations alone, Teva paid $787 million on profits of $14.2 billion, for an effective tax rate of just 5.6%.
"Yediot Ahronot": The public feels that Teva pays too little in taxes; that you make billions in profits and throw crumbs to the state.
Levin: "Teva paid all the taxes it owes by law. Years ago, the government and the Knesset decided to encourage investment in the pharmaceuticals industry, and established a tax regime, which applied to Teva too. The decision was smart and far-reaching: this industry developed here magnificently. The policy to encourage investment made it possible to keep Teva's patents and its intellectual property in Israel, and helped create 7,000 jobs at our facilities, mostly in the periphery from the Galilee to the Negev."
Would things have looked differently had Teva paid a companies tax rate of 5% or 8% rather than zero?
"In 2010, a committee chaired by Ministry of Finance director general Haim Shani recommended raising the tax rate on profits of Israel-based big multinationals, such as Teva, from zero to 5%. Teva participated in the committee's discussions, contributed to them, and supported the recommendations. The change did not affect our position in or our relationship with Israel. Teva was, is, and will be Israeli."
You won't run away, whatever is decided?
"We will pay the taxes that the government demands from us, just as we've done in the past. Every company should pay taxes."
You've accumulated NIS 40 billion in trapped profits. What will you do with them?
"I reject outright the term 'trapped profits' with regard to Teva. We have no such profits. Teva does not feel as if it is a foreign business that came to Israel from outside to reap profits. We've been partners for decades in the country's development. Our profits were, and will be, invested in Israel - in facilities, laboratories, and manpower. We don’t measure ourselves only by the share price, but also by our contribution to Israeli society. Israel is Teva's commitment, it is our heart, and our presence in the country has unquestionably had a positive effect on other multinationals."
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
You comment was recieved and soon will be published.
Load more comments
Three months ago, the company announced promising preliminary clinical trial results.
Teva VP Ika Abravanel resigns
Abravanel's is the first senior departure from Teva since Erez Vigodman became CEO.
FDA approves Pluristem cell production facility
Pluristem's Haifa plant can produce 150,000 doses of PLX cells annually.
Desheh: Splitting Teva will not create value
Teva CFO Eyal Desheh says Teva's tight integration means that a split makes no sense.
InsuLine expanding in Europe
24Care will distribute the company's InsuPad product in the Netherlands and Belgium.
Teva launches generic breast cancer, osteoporosis drug
Teva has 180 days of marketing exclusivity for generic Evista, which had 2013 US sales of $824 million.
BiolineRX raising $21m in Nasdaq secondary offering
The company will use the proceeds to develop leukemia and celiac disease drugs.
MediWound sets terms for $92m Nasdaq IPO
The burns and wounds treatment developer's offering is at a value of $350-370 million.
Opko losses triple
CEO Phillip Frost: From an R&D perspective, all our programs are progressing.
D-Pharm doubles on good interim stroke study results
The Phase IIa trial interim results found the company's drug was safe for cerebral strokes.
Perrigo selling OTC drugs through Amazon
Perrigo: It is also a platform for obtaining good information about consumer behavior.
Teva launches bipolar, schizophrenia treatment
Adasuve is the first orally inhaled medicine for the acute treatment of agitation in schizophrenia and bipolar I disorder.
Perrigo acquires Aspen Global products for $51m
Perrigo bought value-brand OTC products sold in Australia and New Zealand.
Galmed updates $30m Nasdaq IPO prospectus
The liver disease drug developer will issue shares at a company value of $132 million.
Enzymotec shareholders raise $131m in offer to sell
Kibbutz Ma'anit's Galam reportedly sold shares for $46 million.
Compugen raises $63m, Magic $51m
The two companies held secondary offerings on Nasdaq on the basis of shelf prospectuses.
If Rose Fostanes played basketball
Reforms in regulations for foreign caregivers are welcome, but don't go far enough.
Private treatment kills public healthcare
If the German Committee validates private healthcare, it will be the last nail in public healthcare's coffin, argues Prof Dani Filc.
Reducing the number of polyps that colonoscopies miss
EndoChoice's Israel development center has devised an endoscope with a 330-degree arc.
Neopharm moves into orphan drugs
The company, better known for marketing others' products, has been quietly building up its innovative capacity, as VP Tal Fuhrer relates..
Merck Serono Israel incubator nurtures early stage projects
Merck Germany head of pharmaceuticals Dr. Stefan Oschmann says R&D is enjoying a renaissance at big pharma companies.
Israeli biomed cos bring in US CEOs
"Globes" speaks to 3 US CEOs appointed to boost marketing at TASE traded medical device companies.
Alcobra has had two successful Nasdaq offerings this year as it develops an ADHD treatment with fewer side effects.
Restructuring can help Teva's Copaxone woes
Avishai Ovadia argues that Teva can offset falling Copaxone sales by reducing overall company costs.
Enabling diabetes patients to sleep soundly
Excess insulin levels can be fatal when they occur at night. NightSense aims to remove the fear.