Teva Pharmaceutical Industries Limited (TEVA) Plans Sweeping Reorganization
11/30/2012 11:32:34 AM
Teva Pharmaceutical Industries Ltd , the world's biggest maker of generic drugs, announced an ambitious plan on Friday to reshape the company as it faces increased competition for its top-selling multiple sclerosis drug Copaxone. The Israeli-based company said it plans to streamline operations, cut costs and make targeted acquisitions to improve profitability. It will discontinue certain research programs and integrate functions ranging from ordering to inventory control. Teva said profit excluding some items will be between $4.85 and $5.15 a share in 2013, while revenue will be $19.5 billion to $20.5 billion. Analysts were on average forecasting earnings of $5.71 a share and revenue of $20.85 billion, according to Thomson Reuters I/B/E/S. Teva will outline its plans in detail at an investor day on Dec. 11. In the meantime, it is predicting sales of Copaxone will fall somewhat in 2013 as it faces competition from new drugs for multiple sclerosis. A new drug that is expected to be approved shortly from Biogen Idec Inc, BG-12, is expected to pose particularly strong competition. The reshaping of Teva is being driven by its new chief executive, Jeremy Levin, a former senior executive at Bristol-Myers Squibb, who says he wants to make the company more transparent and responsive to shareholders.