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Teva CEO exits amid confidence crisis

Tuesday, February 07, 2017 - 01:42

The chief executive of Teva Pharmaceutical Industries, the world's biggest maker of generic drugs, has stepped down after three years following a series of strategic stumbles and legal and operational setbacks that sent its shares plummeting. David Pollard reports.

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He came to Teva as a turnaround specialist. Now he's shipping out. Erez Vigodman - CEO of the world's biggest maker of generic drugs and Israel's biggest company - resigning from a post he's held since 2014 .... (SOUNDBITE) (English) ELDAD TAMIR, FOUNDER AND CEO OF TAMIR FISHMAN GROUP, SAYING: "Some people think Erez is a great CEO, some people think he made a lot of mistakes ..." Eldad Tamir's investment house has cut its holdings in Teva by 90 per cent. (SOUNDBITE) (English) ELDAD TAMIR, FOUNDER AND CEO OF TAMIR FISHMAN GROUP, SAYING: "For us it was clear there's a big issue, a big problem in Teva, both in terms of the Copaxone and the recent acquisitions and we held almost nothing in the last two years." Teva's shares tumbling to a 10-year low last week after a US court found the patents for its Copaxone MS drug invalid. The latest in a string of setbacks - and ambitious deals. The drugmaker now with nearly 36 billion dollars in debt - close to its market value - after paying over 40 billion to buy US drugmaker Actavis's generics business. Though as the deal was completed last year, Vigodman perhaps had no way of knowing what - or rather who - lay ahead ... And his (Trump's) threat to crack down on drug prices in the world's biggest pharmaceuticals market. (SOUNDBITE) (English) ELDAD TAMIR, FOUNDER AND CEO OF TAMIR FISHMAN GROUP, SAYING: "Right now we're seeing a bleeding company, a company with a lot of debt, a lot of profit as well - coming from the past products - but we don't see a clear strategy around the future." Taking charge of the future for now, Yitzhak Peterburg has already pledged a 'thorough review'. Few know what it'll entail - though some investors would like Teva to spin off its speciality drugs business. Either way, the new interim chief may well be forced to think outside the generics box if its fortunes are to rise again.

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Teva CEO exits amid confidence crisis

Tuesday, February 07, 2017 - 01:42