Wednesday, April 16, 2014
Inquirer Daily News

Teva renews leases for buildings in Philly suburbs of Montgomery and Bucks counties

Teva Pharmaceutical Industries Ltd., which has been under pressure from Wall Street to cut costs and which said in May it would close a Bucks County factory by 2017, has renewed leases for three facilities in Montgomery County and a fourth in Bucks County.

Teva renews leases for buildings in Philly suburbs of Montgomery and Bucks counties

Teva Pharmaceutical Industries Ltd., which has been under pressure from Wall Street to cut costs and which said in May it would close a Bucks County factory by 2017, has renewed leases for three facilities in Montgomery County and a fourth in Bucks County, spokeswoman Denise Bradley said Friday.

Teva, based in Israel, is the world's largest generic drugmaker by revenue.

In its 2012 annual report, Teva included its Americas' headquarters among four facilities in the North Wales area of Montgomery County.

One building is on Privet Road in Horsham. Two buildings are in a big complex on Horsham Road, and those facilities have a North Wales mailing address. The leases on those buildings, according to the annual report, were set to expire in 2013 through 2016.

A fourth building is a warehouse on New Britain Boulevard in Chalfont, Bucks County. The annual report said that warehouse's initial lease was to expire this year.

Information on the length and terms of the new leases was unavailable Friday.

Teva bought Cephalon in 2011 for $6.8 billion as part of its effort to expand its brand-name drug line. As part of the deal, Teva got Cephalon facilities in Frazer and West Chester. Teva renewed the lease on the Frazer office in 2012, according to a sales brochure about the building.

The factory in Sellersville, Bucks County, had 470 employees, fourth-fewest among Teva's 18 manufacturing sites, as of Dec. 31. Teva is also selling a small plant in Irvine, Calif.

After questioning whether Teva needed so many facilities, CEO Jeremy Levin said in November 2012 the company would cut $1.5 billion to $2 billion from annual costs by 2015. In 2011, Teva bought property in Northeast Philadelphia, intending to build a $300 million facility, but those plans have been dropped.

"More and more, we will focus on cost-effective locations," Carlo de Notaristefani, Teva's chief of global operations, told stock-market analysts in New York in December.

Teva had $20.3 billion in revenue in 2012. Finance chief Eyal Desheh told analysts on Aug. 1 he expected 2013 revenue to be between $19.5 billion and $20.5 billion.

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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