Teva Pharma to start lay­offs in Is­rael and US

BioSpectrum (Asia) - - News -

The world’s largest generic drug­maker Teva Phar­ma­ceu­ti­cal is ex­pected to cut up to a quar­ter of its 6,860-strong work­force in Is­rael, and a few thou­sand more staff in the United States. The com­pany will send ter­mi­na­tion let­ters to many of its 10,000 em­ploy­ees in the United States in com­ing weeks.

The debt-laden com­pany’s stock closed up 4.6 per cent in Tel Aviv. Teva had been widely ex­pected to cut costs af­ter warn­ing this month it would miss 2017 profit fore­casts due to fall­ing prices of gener­ics in the U.S. and weak­en­ing sales of its mul­ti­ple scle­ro­sis drug Copax­one.

Teva has also been sad­dled with nearly $35 bil­lion in debt due to its $40.5-bil­lion ac­qui­si­tion of Al­ler­gan’s generic drug business Ac­tavis last year. Teva’s new Chief Ex­ec­u­tive Kare Schultz has been work­ing out the de­tails of the job cuts with re­gional man­age­ment in Is­rael and the United States. It has been stated that be­tween 20 per cent and 25 per cent of the staff in Is­rael could go, in­clud­ing Michael Hay­den, Teva’s chief sci­en­tific of­fi­cer and pres­i­dent of re­search and devel­op­ment.

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