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JERUSALEM--(BUSINESS WIRE)--Dec. 14, 2017--
Teva Pharmaceutical Industries Ltd. (NYSE & TASE: TEVA) announced today
a comprehensive restructuring plan to significantly reduce its cost
base, unify and simplify its organization and improve business
performance, profitability, cash flow generation and productivity.
This press release features multimedia. View the full release here:
Kåre Schultz, Teva’s President and CEO, said, "Two weeks ago we
announced a new organizational structure and executive management team.
Today we are launching a comprehensive restructuring plan, crucial to
restoring our financial security and stabilizing our business. We are
taking immediate and decisive actions to reduce our cost base across our
global business and become a more efficient and profitable company.”
"We will execute this plan in a timely and prudent manner, remaining
focused on revenue and cash flow generation, in order to make sure Teva
is ready to meet all of its financial commitments. Teva will optimize
its cost base while ensuring that we protect our revenues and preserve
our core capabilities in generics and in select specialty assets, in
order to secure long-term growth. In 2018, we expect to secure the
successful launches of Austedo and fremanezumab."
The two year restructuring plan announced today is intended to reduce
Teva's total cost base by $3 billion by the end of 2019, out of an
estimated cost base for 2017 of $16.1 billion. More than half of the
reduction is expected to be achieved by the end of 2018. The company
expects to record a restructuring charge as a result of the
implementation of the plan in 2018 of at least $700 million, mainly
related to severance costs, with additional charges possible following
decisions on closures or divestments of manufacturing plants, R&D
facilities, headquarters and other office locations.
The restructuring plan will focus on:
These steps are expected to result in the reduction of 14,000 positions
globally – excluding the impact of any future divestments – over 25% of
Teva’s total workforce – over the next two years.
The majority of the reductions are expected to occur in 2018, with most
of the affected employees being notified within the next 90 days.
Restructuring efforts will be done in accordance with applicable local
requirements. Consultations with the relevant employee representatives
will begin in the near term.
In addition to the restructuring plan, Teva is announcing the following
measures to address the company’s financial situation:
Teva will provide full guidance for 2018 in February with the annual
results and will share a longer-term strategic direction for the company
later in 2018.
Schultz concluded, "These are decisions I don't take lightly but they
are necessary to secure Teva's future. We will implement these changes
with fairness and the utmost respect for our colleagues worldwide.
Today's announcement is about positioning Teva for a sustainable future
which we will achieve with our talented people. We will ensure that we
continue to provide high quality medicines to the many patients we serve
every day, while adhering to the highest standards of GMP compliance."
The plans were outlined in an email from the CEO to Teva's employees.
The message can be accessed here.
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading
global pharmaceutical company that delivers high-quality,
patient-centric healthcare solutions used by approximately 200 million
patients in over 60 markets every day. Headquartered in Israel, Teva is
the world’s largest generic medicines producer, leveraging its portfolio
of more than 1,800 molecules to produce a wide range of generic products
in nearly every therapeutic area. In specialty medicines, Teva has the
world-leading innovative treatment for multiple sclerosis as well as
late-stage development programs for other disorders of the central
nervous system, including movement disorders, migraine, pain and
neurodegenerative conditions, as well as a broad portfolio of
respiratory products. Teva is leveraging its generics and specialty
capabilities in order to seek new ways of addressing unmet patient needs
by combining drug development with devices, services and technologies.
Teva's net revenues in 2016 were $21.9 billion. For more information,
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, which
are based on management’s current beliefs and expectations and are
subject to substantial risks and uncertainties, both known and unknown,
that could cause our future results, performance or achievements to
differ significantly from that expressed or implied by such
forward-looking statements. Important factors that could cause or
contribute to such differences include risks relating to:
and other factors discussed in our Annual Report on Form 20-F for the
year ended December 31, 2016 (“Annual Report”), including in the section
captioned “Risk Factors,” and in our other filings with the U.S.
Securities and Exchange Commission, which are available at www.sec.gov
Forward-looking statements speak only as of the date on which they are
made, and we assume no obligation to update or revise any
forward-looking statements or other information contained herein,
whether as a result of new information, future events or otherwise. You
are cautioned not to put undue reliance on these forward-looking
View source version on businesswire.com: http://www.businesswire.com/news/home/20171214005653/en/
Source: Teva Pharmaceutical Industries Ltd.
Teva Pharmaceutical Industries Ltd.IR Contacts:United
StatesKevin C. Mannix, 215-591-8912Ran Meir,
215-591-3033orIsraelTomer Amitai, 972 (3)
926-7656orPR Contacts:IsraelIris Beck Codner,
972 (3) 926-7208orUnited StatesDenise Bradley,
215-591-8974Kaelan Hollon, 202-412-7076