Teva boss quits over Board struggles
pharmafile | October 31, 2013 | News story | Medical Communications, Sales and Marketing | Copaxone, Levin, Teva, generics
Teva’s president and chief executive Dr Jeremy Levin has unexpectedly quit as the firm struggles with staff cuts and management in-fighting.
His decision to retire has been announced at a time when the firm appears to be somewhat at a crossroads and undecided on its future strategy.
The world’s biggest generic drugmaker, Teva has in recent years moved into consumer products and has had big success with its big patented multiple sclerosis medicine Copaxone, making $4 billion in peak sales.
But Copaxone is poised to start losing its patents across the world – a loss that will decimate its sales, prompting the Board’s decision to cut around 5,000 jobs last month.
The impending loss of Copaxone has put the firm into a spin as it also must now decide whether to invest more into an R&D-led strategy to help replace that lost revenue, or continue its model as a generic drugmaker.
Outside of the corporate struggles, Teva had to deal with the political fallout from the Israeli government as well. The company had initially planned to cut around 800 Israeli jobs, but following an outcry from politicians and the Histadrut trade union, Levin agreed to co-ordinate any reductions with the union and the state.
Bernstein said in a research note seen by the Financial Times this week that this apparent U-turn indicated tensions between Phillip Frost, the chairman seeking aggressive cost-cutting, and a more cautious attitude by management including Levin, notably over reductions in Israel.
The Bernstein note cautioned: “The leak itself is a major concern. If Teva is unable to keep this level of information from the media, how can they expect to keep business plans hidden from rivals?”
Frost, chairman and Teva’s largest shareholder, told the FT that Levin and the Board had been “fully aligned on the strategy and targets of the company”, but had differences on how to carry out their plans.
“The differences were over nuances rather than disagreement over the strategy itself. It just got to the point where the slight differences couldn’t be resolved, and we thought it better to part ways,” he told the newspaper.
Doubts over future
Industry analysts at EvaluatePharma said: “Just as Teva appeared to be on the verge of emerging from a period of inertia, chief executive Jeremy Levin abruptly resigned, an event that throws more doubt over how well the company will cope with the imminent loss of market exclusivity of MS drug Copaxone.
“Conflict with the Board and labour unrest over looming job cuts were the trigger for the departure, although it has been apparent for some time that the Israeli group is struggling with its strategic focus.
“In retrospect, moving a big pharma acquisitions ace into the C-suite of a company still largely dependent on speciality and generics income might not have been the best fit; what the company needs to decide now is how committed it is to its innovative pharma pipeline.”
The company’s Board has now named Eyal Desheh, Teva’s executive VP and chief financial officer, to fill the role of president and chief executive on an interim basis.
Teva said that it has formed a committee that will “promptly begin to search for a permanent successor”.
Ben Adams
Related Content
Teva’s Ajovy significantly reduces migraine in children and adolescents
Teva’s Ajovy (fremanezumab) has demonstrated significant reduction in monthly migraine and headache days in children …
Teva announces positive results from trial of AJOVY for migraine
Teva has announced positive results from the phase 4 PEARL study of AJOVY (fremanezumab), its …
Sanofi and Teva partner for development of inflammatory bowel disease treatment
Sanofi and Teva Pharmaceuticals have announced that they will collaborate for the co-development and co-commercialisation …
