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The share price of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE:TEVA) rose 6.7% on the New York Stock Exchange on Tuesday to $44.21, a 20-month high, after acting CEO and CFO Eyal Desheh said that the company would stick with its $2 billion streamlining plan.”We are committed to reducing our costs by $2 billion, hopefully even further than that, ” Desheh told the JPMorgan & Chase Co. healthcare conference in San Francisco. He added that Teva was moving quickly to change strategic programs and plans and that the company would shut down “inefficient plants and plants in expensive locations.” His remarks are in line with Teva chairman Phillip Frost’s position on the cost-cutting plan, which includes thousands of layoffs worldwide.
Desheh said that Teva will move most US production to Eastern Europe and Asia, without losing sales, and that acquisitions were also a “legitimate” way to grow. “We believe in growing by acquisitions, look at our history, ” said Desheh.
Teva is waiting for the US Food and Drug Administration (FDA) to approve a new high-dosage of the company’s flagship drug, Copaxone, for the treatment of Copaxone. The new version is administered three times a week instead of daily.
“We are rather focused on strengthening the Copaxone franchise, on building it, and learning more about it, and making sure that this drug gets recognized for its incredible safety record, its efficacy, and maintaining sales, ” said Teva CSO Michael Hayden. “We have a big story around Copaxone. It’s a difficult product to make. Our goal is not to block generic Copaxone; our goal is to protect patients, serve the interest of patients, and also serve our shareholders.”
Teva estimates that 45% of multiple sclerosis patients will switch to the new version of Copaxone. Analysts believe that this is very important for the company’s future growth, especially before generic Copaxone reaches market.
Published by Globes [online], Israel business news – www.globes-online.com
