Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) announced today a new management structure, which will be implemented immediately. President of Global R&D and Chief Scientific Officer Dr. Michael Hayden, president and CEO, Global Specialty Medicines Dr. Rob Koremans and president and CEO Global Generic Medicines Group Dipankar Bhattacharjee will retire from Teva at the end of the year.
No details were given of the expected mass layoffs but Teva’s new President and CEO Kåre Schultz said that a more detailed structuring plan will be announced mid-December.
He said, “Teva is taking decisive and immediate action to address external pressures and internal inefficiencies. Our new company structure will enable stronger alignment and integration between R&D, operations and the commercial regions, allowing us to become a more agile, lean and profitable company."
Schultz added, "We will focus on driving sustainable value creation. The new management team will position Teva for turnaround in the short to medium term. We are already working on a detailed restructuring plan for Teva and will share it in mid-December. It remains our absolute priority to stabilize the company’s operating profit and cash flow in order to improve our financial situation, while being focused on short-term revenue and cash generation, and at the same time, ensure we deliver on our commitment to supply high-quality medicines to patients around the world."
Teva's commercial business will no longer have two separate global groups for generics and specialty medicines, and will be integrated into one commercial organization, operating through three regions - North America, Europe and Growth Markets. Each of the regions will manage the entire portfolio - including generics, specialty and OTC - with full end-to-end P&L accountability. Some of the former global units will be integrated into the new structure, while others will be made redundant.
The former Generic R&D and Specialty R&D organizations will be combined into one global group with overall responsibility for all R&D activities - generic, specialty and biologics - maximizing ROI through better focus and efficiency.
A newly formed Marketing and Portfolio function will be responsible for overseeing the interface between regions, R&D and operations throughout all product lifecycle stages and optimizing generic and specialty portfolios across the therapeutic areas.
In addition Michael McClellan has had his appointment as EVP CFO made permanent and Dr. Hafrun Fridriksdottir has been appointed EVP Global R&D, having previously served as Teva's president of Global Generics R&D.
The restructuring and major cutbacks come as Schultz tries to cut Teva's crippling debt of $35 billion, assumed following the acquisition of Actavis in August 2016.
Published by Globes [online], Israel business news - www.globes-online.com - on November 27, 2017
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