Teva Announces New Operating Structure, Leadership Changes
Teva Pharmaceutical Industries has announced a new organization and leadership structure to be implemented immediately. This news follows an announcement by Teva in August 2017 of total staff reductions of 7,000 employees and the closing or divestment of 15 manufacturing plants and the appointment of a new president and chief executive officer (CEO), Kåre Schultz, in September 2017. The company said it will announce a more detailed restructuring plan in mid-December.
“Teva is taking decisive and immediate action to address external pressures and internal inefficiencies,” said Schultz, in a company statement. “Our new company structure will enable stronger alignment and integration between R&D [research and development], operations and the commercial regions, allowing us to become a more agile, lean and profitable company.”
As part of a reorganization, Teva says its commercial business will no longer have two separate global groups for generics and specialty medicines; instead both will be integrated into one commercial organization that will operate through three regions: North America, Europe, and Growth Markets. Each of the regions will manage the company’s entire portfolio, including generics, specialty medicines, and over-the-counter drugs with full end-to-end profit and loss accountability. Some of the former global units will be integrated into the new structure while others will be made redundant, according to Teva. The commercial structure will rely on one leaner supporting organizational infrastructure that includes the following functions: finance, legal, human resources, and global brand and communications.
Additionally, a newly formed marketing and portfolio function will be responsible for overseeing the interface between regions, R&D, and operations throughout all product lifecycle stages and optimizing generic and specialty portfolios across therapeutic areas.
As part of this reorganization, Teva outlined changes in its executive management team and also noted that it will announce a more detailed restructuring plan in mid-December. “The new management team will position Teva for turnaround in the short to medium term,” Schultz said. “We are already working on a detailed restructuring plan for Teva and will share it in mid-December. It remains our absolute priority to stabilize the company’s operating profit and cash flow in order to improve our financial situation while being focused on short-term revenue and cash generation, and at the same time, ensure we deliver on our commitment to supply high-quality medicines to patients around the world.”
As a result of these changes, Dr. Michael Hayden, currently president of Global R&D and chief scientific officer, Dr. Rob Koremans president and CEO, Global Specialty Medicines, and Dipankar Bhattacharjee president and CEO, Global Generic Medicines Group, will retire from Teva, effective December 31, 2017.
As part of the new executive management team:
- Michael McClellan is appointed executive vice president (EVP), chief financial officer (CFO) and will oversee the Finance Group, Business Development, Investor Relations, and Information Technology. Previously, he served as Interim CFO and as senior vice president (SVP) & CFO Global Specialty Medicines. Prior to joining Teva, McClellan was the US CFO at Sanofi.
- Dr. Hafrun Fridriksdottir is appointed EVP, Global R&D. Previously, she served as president of Global Generics R&D. Prior to joining Teva, Fridriksdottir served as SVP and president of Global Generics R&D at Allergan.
- Brendan O’Grady is appointed EVP, North America Commercial. O’Grady previously served as chief commercial officer, Global Specialty Medicine, as interim head of Teva’s European specialty business, president and CEO for Teva’s North America generics business, and VP US Market Access and Reimbursement.
- Richard Daniell is appointed EVP, European Commercial, after having served as president and CEO, Teva Generics Europe.
- Gianfranco Nazzi is appointed EVP, Growth Markets Commercial. Nazzi previously served as president and CEO of Growth Markets at the Global Generic Medicines group, and prior to that he was he has served as SVP, Specialty Medicines Europe.
- Sven Dethlefs is appointed EVP, Global Marketing & Portfolio. He previously served as Global Head of Respiratory Medicines and as chief operating officer, Teva Global Operations.
All appointments are effective immediately while the retiring executives will stay with Teva to support the transition until the end of the year.
Source: Teva Pharmaceutical Industries