Teva Announces Further Restructuring - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

Teva Announces Further Restructuring


Teva Pharmaceutical Industries has announced steps to accelerate the reduction of costs and to optimize its structure and processes. These steps are part of Teva’s worldwide restructuring program, which was introduced in December 2012 and included actions to divest noncore assets, increase organization effectiveness, improve manufacturing efficiency and reduce excess capacity.

Teva will reduce its global workforce by approximately 10% (approximately 5000 employees), and will complete the majority of the reduction by the end of 2014. Teva says it will continues to identify opportunities to optimize value through the selective trimming of assets that no longer fit its core business or are not critical to its future. Teva said it will scale down oversized parts of the company while growing its generics business and core R&D programs, including high-value complex generics, expanding its presence in emerging markets and broadening its portfolio, especially in its specialty medicines and over-the-counter businesses.

The company now expects to realize approximately $2.0 billion in annual cost savings by the end of 2017, compared to the previously guided range of $1.5 billion to $2.0 billion. The company estimates that $1.0 billion, or 50% of the annual cost savings, will be realized by the end of 2014, and 70% by the end of 2015. The majority of the savings are expected to come from a reduction in the company’s cost of goods. Teva expects to reinvest part of the initial savings accumulated in 2014 and 2015, in high-potential programs. These investments will include the development of the company's complex generics and specialty pharmaceutical pipeline, which includes more than 30 late-stage programs.

Source: Teva Pharmaceutical Industries

ADVERTISEMENT

blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
|Monthly
| Weekly

Survey
Which of the following business challenge poses the greatest threat to your company?
Building a sustainable pipeline of products
Attracting a skilled workforce
Obtaining/maintaining adequate financing
Regulatory compliance
Building a sustainable pipeline of products
27%
Attracting a skilled workforce
27%
Obtaining/maintaining adequate financing
14%
Regulatory compliance
32%
View Results
Eric Langer Outsourcing Outlook Eric LangerBiopharma Outsourcing Activities Update
Cynthia Challener, PhD Ingredients Insider Cynthia Challener, PhDAppropriate Process Design Critical for Commercial Manufacture of Highly Potent APIs
Jill Wechsler Regulatory Watch Jill Wechsler FDA and Manufacturers Seek a More Secure Drug Supply Chain
Sean Milmo European Regulatory WatchSean MilmoQuality by Design?Bridging the Gap between Concept and Implementation
Report: Pfizer Makes $101 Billion Offer to AstraZeneca
Medicare Payment Data Raises Questions About Drug Costs
FDA Wants You!
A New Strategy to Tackle Antibiotic Resistance
Drug-Diagnostic Development Stymied by Payer Concerns

Click here