Tuesday, September 16, 2014
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Teva juggling on display Tuesday

Teva Pharmaceuticals, which has operations around Philadelphia, is juggling several things right now, but its stock price has risen in the last year.

Teva juggling on display Tuesday

(AP Photo/George Widman)
(AP Photo/George Widman)

Teva Pharmaceutical Industries Ltd., will send out chief financial officer Eyal Desheh to juggle, er, talk to analysts Tuesday when he and they gather at the Goldman Sachs 35th Annual Global Healthcare Conference in Rancho Palos Verdes, Calif.

Desheh might as well be juggling because Teva has a lot of balls in the air.

Last week, Teva said it would acquire privately held Labrys Biologics, Inc. for $200 million up front and as much as $625 million more if Labrys' key drug for migraine pain pans out.

Based in Israel with thousands of suburban Philadelphia employees, Teva wants to be "a global leader in pain by 2020," according to the company press release.

Some analysts thought Teva would be in a lot of pain right now. Instead, Teva's stock is near a 52-week high. (The employees who have lost jobs, or will lose jobs, will still be in pain.)

The concerns centered on another management shakeup and Copaxone, which is a patented drug for multiple sclerosis and accounts for about 21 percent of Teva's revenue and nearly 40 percent of profits.

Teva's lawyers have been fighting opponents in court, trying to extend the patent for Copaxone and thereby maintain market exclusivity. Meanwhile, sales representative have been urging doctors to shift patients to a new version of Copaxone that has patent protection until 2030.

As for the organization, new CEO Erez Vigodman pared the top tier of executives.

"We view the announcement of a new organizational structure at Teva, including the consolidation of the generics division under a single umbrella under the leadership of Siggi Olafsson, as a meaningful positive development at the company," Citigroup analyst Liav Abraham wrote in a note to clients. Olafsson came from generic rival Actavis, which Abraham viewed as loss for Actavis. Abraham has also reported that the conversion to the newer Copaxone has gone better than Teva projected. "The reduction of Teva’s executive management team from 15 to 9 is a reflection of the new organizational structure and will promote more swift decision making at the executive level going forward, we believe."

 

 

David Sell
About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

For Inquirer.com. Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com.

David Sell
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