Teva Pharma plans to cut about 5,000 employees (Update)

October 10, 2013 by Tom Murphy

Teva Pharmaceutical Industries Ltd. plans to cut about 5,000 employees mostly by the end of next year as part of a restructuring designed to slim the drugmaker's business and make it more efficient.

The Israeli company said Thursday it employs about 46,000 people worldwide, so the cuts amount to nearly a 10 percent global workforce reduction. The drugmaker plans to trim oversized parts of its business while growing its generic and core research and development programs. It plans to reinvest savings from the cuts in what it considers to be areas with high potential, like development of complex generics and specialty pharmaceutical products.

It also wants to increase its presence in emerging markets and broaden its product portfolio, especially with over-the-counter drugs, which can be sold without a prescription. Many drugmakers are targeting emerging markets like Brazil and China as possible sources for future growth.

Earlier this year, the company said it would close by 2017 a Sellersville, Pennsylvania, generic drug plant that employs about 450 people. It also plans to sell another plant in Irvine, California.

Teva said the moves are part of a global restructuring it announced in 2012. It now expects to save about $2 billion annually by the end of 2017, largely due to a reduction in the company's cost of goods. That represents the high end of its previously forecast savings range of $1.5 billion to $2 billion.

The company expects to end 2013 near the middle of its expected ranges of $4.85 to $5.15 per share in earnings on $19.5 billion to $20.5 billion in revenue.

Analysts expect, on average, earnings of $4.99 per share on $20.05 billion in revenue, according to the data firm FactSet.

Teva is one of the world's largest generic drugmakers, and it also has made a push in recent years to grow its branded medicine business.

In August, it said generic revenue fell 8 percent in the second quarter due to declining sales in the U.S. and Europe. It also has seen a steep sales drop for one of its brand-name drugs, Provigil, which treats tiredness caused by narcolepsy, obstructive sleep apnea, and changes in work schedule. Teva acquired the drug when it bought Cephalon Inc. in 2011. As part of that deal, antitrust regulators required Teva to sell U.S. rights to generic Provigil to another company.

Shareholders liked the moves Teva announced Thursday, at least initially. They sent U.S.-traded shares of Teva up nearly 3 percent, or $1.11, to $40.31 Thursday in premarket trading about 30 minutes ahead of the market opening.

Teva shares have traded between $36.63 and $42.83 over the past year.

Explore further: Pfizer settles Protonix patent case for $2.15B

Related Stories

Pfizer settles Protonix patent case for $2.15B

June 12, 2013
Two generic drugmakers will pay $2.15 billion to Pfizer and Takeda Pharmaceutical to settle a patent fight over the heartburn treatment Protonix.

Merck to cut 8,500 more jobs (Update)

October 1, 2013
Merck & Co. plans to cut another 8,500 jobs as the drugmaker continues its struggle with competition from cheaper generic medications that have squeezed the pharmaceutical industry for several quarters now.

FDA approves first generic versions of Zyprexa

October 24, 2011
(AP) -- Federal health officials on Monday approved the first generic versions of the blockbuster drug Zyprexa, an expensive treatment for schizophrenia and bipolar mood disorder.

Pfizer painkiller gets longer patent protection (Update)

March 5, 2013
Drugmaker Pfizer Inc. said Tuesday that a new patent on one of its top drugs, anti-inflammatory painkiller Celebrex, extends its U.S. patent protection by 18 months, potentially bringing the company a few billion dollars ...

US says Teva antidepressant is ineffective

October 3, 2012
(AP)—Teva Pharmaceuticals has stopped shipping its generic version of a popular antidepressant off the market after a U.S. government analysis showed the pill does not work properly.

Recommended for you

In most surgery patients, length of opioid prescription, number of refills spell highest risk for misuse

January 17, 2018
The possible link between physicians' opioid prescription patterns and subsequent abuse has occupied the attention of a nation in the throes of an opioid crisis looking for ways to stem what experts have dubbed an epidemic. ...

Patients receive most opioids at the doctor's office, not the ER

January 16, 2018
Around the country, state legislatures and hospitals have tightened emergency room prescribing guidelines for opioids to curb the addiction epidemic, but a new USC study shows that approach diverts attention from the main ...

FDA bans use of opioid-containing cough meds by kids

January 12, 2018
(HealthDay)—Trying to put a dent in the ongoing opioid addiction crisis, the U.S. Food and Drug Administration on Thursday slapped strict new restrictions on the use of opioid-containing cold and cough products by kids.

Taking ibuprofen for long periods found to alter human testicular physiology

January 9, 2018
A team of researchers from Denmark and France has found that taking regular doses of the pain reliever ibuprofen over a long period of time can lead to a disorder in men called compensated hypogonadism. In their paper published ...

Nearly one-third of Canadians have used opioids: study

January 9, 2018
Nearly one in three Canadians (29 percent) have used "some form of opioids" in the past five years, according to data released Tuesday as widespread fentanyl overdoses continue to kill.

Growing opioid epidemic forcing more children into foster care

January 8, 2018
The opioid epidemic has become so severe it's considered a national public health emergency. Addiction to prescription painkillers, such as oxycodone and morphine, has contributed to a dramatic rise in overdose deaths and ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.