Teva chairman stepping down amid revamp
pharmafile | June 19, 2014 | News story | Manufacturing and Production, Medical Communications, Sales and Marketing | Frost, Levin, Teva, chief, generics, israel, pharma
Having just announced closing half of its manufacturing sites Teva has now confirmed that chairman Dr Phillip Frost is to bow down from the board.
The news follows shareholder concern that Teva’s board was too big and showed signs of in-fighting. Teva had promised an overhaul after chief executive Jeremy Levin left last year amid business woes.
Frost’s pending departure before 2015 is not a huge surprise as he had previously alluded to his resignation intentions early in 2014, but the circumstances leading to his decision are somewhat tumultuous.
Miami-based Frost said in a letter to Teva shareholders: “I have advised the board that I believe it will be appropriate for me to step down as chairman approximately by the end of this year.”
Discussions “regarding our corporate governance are ongoing”, adds Frost in the letter. The 77-year-old continues: “Corporate governance is a priority for the board, and we will continue to evaluate the size and composition of the board.”
The board’s Corporate Governance and Nominating Committee is working on a succession plan for him he then points out. Levin was replaced by ‘turnaround specialist’ Erez Vigodman last year. Analysts said divisions within the board over the direction of Teva have wreaked havoc upon the company in recent years.
Under Frost Teva has struggled to find new source of revenue as the multiple-sclerosis treatment Copaxone, which is said to account for more than 50% of its profits, faces competition from newer oral drugs and possible generics this year.
Frost oversaw Teva’s transition from a producer of mainly copycat treatments to innovations in areas such as neurology and respiratory treatments. As Frost steps down, news source Bloomberg suspects Teva director Dan Propper has positioned himself as a possible replacement.
Upon announcing the restructure of its organisation including a number of senior leadership changes – the worlds largest generics firm is still insisting that these moves are not a prelude to breaking up the company.
Other announced board moves at Teva include the election of emerging markets expert Jean-Michel Halfon, and the retirements of Chaim Hurvitz and Dan Suesskind.
Brett Wells
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