As profits slide, Teva plans to sell factory in Irvine, Calif.

In a deal that will create the world's largest generic drug company, Teva Pharmaceutical Industries Ltd. said Monday it is acquiring rival Ivax Corp. for about $7.4 billion (6.13 billion euros) in cash and stock. Ivax shares climbed 10 percent in morning trading. (AP Photo/George Widman)

Teva Pharmaceuticals reported declining profits for the fourth quarter and all of 2012 on Thursday, while also saying it will try to sell its injectable medicine plant in Irvine, Calif.

Teva is based in Israel, but its Americas headquarters is in North Wales and the company has other facilities in the Philadelphia region.

Using generally accepted accounting principles and including one-time charges for such things as impairment and restructuring, the net profit for 2012 was $1.96 billion, which declined from $2.76 billion in 2011. The fourth-quarter net profit was $320 million, which declined from $506 million in the same period in 2011.

Chief executive officer Jeremy Levin said recently that the company would cut $1.5 billion to $2 billion in costs over the next five years. Selling the Irvine plant would still leave Teva with five factories that make injectable drugs, and Teva officials said the company has no plans to stop that segment of its business.

Levin insisted that Teva would work with the U.S. Food and Drug Administration and other companies to avoid shortages of those drugs.

The Irvine plant was closed for a period to fix manufacturing issues. In the course of remediation, Levin said its place in Teva's real estate portfolio was re-assessed.

Referring the savings plans, Levin said, "This process has been initiated. It's being done in a thoughtful and systematic fashion. It's not the highest or lowest cost facility.....It's taking the most effective steps."

As part of the process, Teva previously said it decided to cease planning for a $300 million facility on a brownfield site that it bought in Northeast Philadelphia.

Teva's statement with the financial results is here.