Leaders of Teva Pharmaceutical Industries announced financial projections for 2013 and said the company would cut costs by $1.5 billion to $2 billion over the next several years, but did not specify how many people will lose jobs, what facilities would be closed or whether the savings would flow to the bottom line.
In a conference call with stock market analysts, chief executive officer Jeremy Levin said the cost savings would occur mostly in the next three years and some in the two years thereafter. But after repeated questions from analysts about specifics on the cuts and if investors would see the numbers flow to the bottom line, Levin eventually said, "I would just say, 'Wait until next week."
Teva had previously announced that it would hold an investor conference on Dec. 11 in New York. Friday morning's conference call was announced Thursday night.
"Going forward," Levin said, "Teva will look like a very different company than the Teva of the past."
Teva is based in Israel, but has its Americas headquarters in the Philadelphia suburb of North Wales, and other facilities in the area.
Chief financial officer Eyal Desheh said the company expected sales of generic drugs in the U.S. would be "flat," in 2013.
As for the cost-cutting, Desheh said, "This program will touch all the parts of our company, including operations, procurement of raw materials, indirect purchasing, real estate and site management, IT, R&D, marketing materials and activities, all areas of SG&A (sales, administration)."