Product details

Teva Pharmaceuticals, the world’s largest generic drug manufacturer was established in Israel in 1901. Teva’s growth was marked by a number of successful acquisitions and key partnerships for expanding into new markets. With presence in 60 countries, Teva was supported by over 46,400 dedicated employees across the world. Being an integrated global Pharma company, Teva’s focus areas were generic, speciality and OTC medicines. Due to industry consolidation and competition from emerging market players especially in the global generic markets, Teva witnessed a slowdown in growth, and reduced revenues. Teva’s former CEO Dr Jeremy Levin had formulated a threefold turnaround strategy, which included integrating new acquisitions into a single organisation, focus on selected areas like neurology, multiple sclerosis, women’s health and diseases related to the ageing process and finally development and sales of new therapeutic entities (NTEs). Teva was very much aware of the imminent expiry of the Copaxone patent in May 2014. Yet, so far it had not succeeded in reducing its dependence on this drug or in finding a suitable replacement. In such challenging circumstances, the appointment of Erez Vigodman as CEO post the departure of Levin was a well considered move by Teva to regain its business foothold. The challenge before Vigodman was to manage Teva’s complex business model, increase the organisation’s wealth while giving priority to restoring faith of the US capital market. As 2014 brought rays of hope for Teva, it remained to be seen whether Vigodman would be able to meet the challenges and commitment for creating value for its investors as well as achieve sustainable long term growth.