Teva closing manufacturing sites to cut costs
- Over the next five years, Teva plans to close approximately half of its 75 manufacturing sites.
- Teva recently restructured its organizational leadership.
- Last year, the company announced plans to eliminate 5,000 jobs worldwide. The overall plan is to cut $1 billion by the end of the year, and a total of $2 billion by 2017.
Speaking at the Goldman Sachs 35th Annual Global Healthcare Conference, Teva’s Chief Financial Officer, Eyal Desheh, explained that the goal of its recent actions is to “simplify, to have a smaller number of groups, a smaller number of managers, to simplify the decision-making process."
As part of this focus on returning to a more streamlined vision, Desheh noted that Teva was created “by a series of mergers and acquisitions,” which led to an accumulation of 75 manufacturing sites. He emphasized that the remaining sites will be efficient, productive and quality focused. He also noted that “it’s about bottom-line management.” Areas of therapeutic focus will be therapeutics for CNS, autoimmune and respiratory diseases, as well as pain management and oncology.
- pharmafile.com Teav to close half its sites