Teva Pharmaceutical Industries Ltd (ADR) (TEVA) to Adjust Organization and Leadership Structure to Better Align with Growth Opportunities

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Today, shareholders of Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) woke up to a nice 4% pop in the value of their shares. The reason? The drug maker just announced a series of changes to its organization and leadership structure, as it aims to achieve better commercial focus and drive value creation.

Explaining the need for these changes, Kåre Schultz, Teva’s President and CEO, said, “Teva is taking decisive and immediate action to address external pressures and internal inefficiencies. Our new company structure will enable stronger alignment and integration between R&D, operations and the commercial regions, allowing us to become a more agile, lean and profitable company.”

Schultz continued, “We will focus on driving sustainable value creation. The new management team will position Teva for turnaround in the short to medium term. We are already working on a detailed restructuring plan for Teva and will share it in mid-December. It remains our absolute priority to stabilize the company’s operating profit and cash flow in order to improve our financial situation, while being focused on short-term revenue and cash generation, and at the same time, ensure we deliver on our commitment to supply high-quality medicines to patients around the world.”

New structure

  • The commercial business will no longer have two separate global groups for generics and specialty medicines, and will be integrated into one commercial organization, operating through three regions – North America, Europe and Growth Markets. Each of the regions will manage the entire portfolio – including generics, specialty and OTC – with full end-to-end P&L accountability. Some of the former global units will be integrated into the new structure, while others will be made redundant.
  • The former Generic R&D and Specialty R&D organizations will be combined into one global group with overall responsibility for all R&D activities – generic, specialty and biologics – maximizing ROI through better focus and efficiency.
  • A newly formed Marketing & Portfolio function will be responsible for overseeing the interface between regions, R&D and operations throughout all product lifecycle stages and optimizing generic and specialty portfolios across the therapeutic areas.
  • The new structure will enhance alignment and seamless integration between Teva’s Global Operations, the commercial regions, R&D and the Portfolio function, will increase productivity and simplify the organization.
  • The commercial structure will rely on one leaner supporting organizational infrastructure that includes Finance, Legal, HR, and Global Brand & Communications.

As a result of these changes, Dr. Michael Hayden, Dr. Rob Koremans and Dipankar Bhattacharjee will retire from Teva, effective December 31, 2017.

New executive management team

Michael (Mike) McClellan is appointed Executive Vice President, Chief Financial Officer and will oversee the Finance Group, Business Development, Investor Relations and Information Technology.Previously, he served as Interim CFO and as SVP & CFO Global Specialty Medicines. Prior to joining Teva, Mike was the U.S. CFO at Sanofi.

Dr. Hafrun Fridriksdottir is appointed Executive Vice President, Global R&D. Previously, she served as President of Global Generics R&D. Prior to joining Teva, Hafrun served as Senior Vice President and President of Global Generics R&D in Allergan plc.

Brendan O’Grady is appointed Executive Vice President, North America Commercial. Brendan has previously served as Chief Commercial Officer, Global Specialty Medicine, as interim head of Teva’s European specialty business and as President and CEO for Teva’s North America generics business and as VP US Market Access and Reimbursement.

Richard Daniell is appointed Executive Vice President, European Commercial, after having served as President and CEO, Teva Generics Europe.

Gianfranco Nazzi is appointed Executive Vice President, Growth Markets Commercial. Gianfranco has previously served as President and CEO of Growth Markets at the Global Generic Medicines group, and prior to that he was he has served as Senior Vice President, Specialty Medicines Europe.

Sven Dethlefs is appointed Executive Vice President, Global Marketing & Portfolio. He previously served as Global Head of Respiratory Medicines and as Chief Operating Officer, Teva GlobalOperations.

All appointments are effective immediately, while the retiring executives will stay with Teva to support the transition until the end of the year.

Kåre Schultz concluded, “I would like to thank Dr. Michael Hayden, Dr. Rob Koremans and Dipankar Bhattacharjee for their profound contributions to Teva over the past decade and for their tireless dedication to the many patients we serve.”

Bios of new appointments

Michael (Mike) McClellan has been serving as Teva Interim Group CFO since July 2017. Prior to this role, he had served as SVP & CFO Global Specialty Medicines since July 2015. Prior to joining Teva, Mike was the U.S. CFO at Sanofi, where his career spanned nearly 20 years in roles of increased responsibility in global finance and healthcare. Mr. McClellan received his BSBA, Accounting & Economics from the University of Missouri Trulaske College of Business.

Dr. Hafrun Fridriksdottir has been serving as Executive Vice President, President of Global Generics R&D since February 2017, after serving as Senior Vice President and President of Global Generics R&D from 2016. Prior to joining Teva, from 2015 to 2016, Ms. Fridriksdottir served as Senior Vice President and President of Global Generics R&D in Allergan plc. From 2002 to 2015, she held positions of increasing responsibility within the Actavis Group, including Senior Vice President, R&D. From 1997 to 2002, Ms. Fridriksdottir served as Divisional Manager of Development at Omega Pharma, until its merger with Actavis. Ms. Fridriksdottir started her career as a scientist for 2 years at a research and development company owned by Pharmacia in Sweden, after receiving an MS degree in pharmacy and a Ph.D. in physical pharmacy from the University of Iceland.

Brendan O’Grady has been serving as Chief Commercial Officer, Global Specialty Medicine division since Aug 2016. In addition, he currently serves as the interim head of Teva’s European Specialty business. Prior to these roles, Mr. O’Grady held the position of President and CEO for Teva’s North America generic business in 2015 and held various senior roles since he joined Teva in 2011 as Regional Account Manager. Prior to joining Teva, Mr. O’Grady spent 10 years with Sanofi predecessor companies in a variety of commercial and medical affairs roles that began in field sales. He received his B.S. from Geneseo State University, NY in Management Science/Marketing and holds an M.B.A. from Baker University in Baldwinsville, Kansas.

Gianfranco Nazzi has been serving as President & CEO of Growth Markets, Global Generic Medicines Group since March 2017. Mr. Nazzi joined Teva as Senior Vice President Specialty Medicines Europe in 2014. Prior to joining Teva, he served 7 years at AstraZeneca in various senior roles, including Sales and Marketing Vice President Europe, Global Vice President Respiratory, General Manager of the Balkans and Vice President Primary Care in Italy. At GlaxoSmithKline he served for two years as BU Director Metabolic & Cardiovascular and at Eli Lilly and Company he served for 5 years in various sales and marketing roles in both Italy and the US. He began his career at Danieli. Mr. Nazzi received his BA degree in economics from the University of Udine, and his Masters degree in Management Studies from SDA Bocconi.

Richard Daniell has been serving as President and Chief Executive Officer, Teva Generics Europe since Dec 2016. Prior to that, he had served as Chief Integration Officer Leading Actavis-Teva Integration since Sep 2015 after holding various senior roles, including Chief Operating Officer, Growth Markets and Regional General Manager for Teva in the UK and Ireland from 2012 through 2014. Mr. Daniell joined Teva as Senior Director Teva UK Limited in 2006, following the acquisition of IVAX Pharmaceuticals UK. Prior to joining Teva, he served three years at IVAX Pharmaceuticals UK as Director of Generics. Mr. Daniell received his BSc in chemistry from the University of Auckland.

Sven Dethlefs has been serving as Global Head of Respiratory Medicines, Global Specialty Medicines since January 2016. Prior to that, he had served as Chief Operating Officer, Teva Global Operations, since October 2013. Mr. Dethlefs joined Teva as General Manager, Teva Germany in 2008. Prior to joining Teva, he served for over 11 years as a partner at McKinsey & Company. Mr. Dethlefs received his PhD in biochemistry from the FU Berlin/Pasteur Institute Paris.

On the ratings front, Teva stock has been the subject of a number of recent research reports. In a report issued on November 24, Wells Fargo analyst David Maris maintained a Hold rating on TEVA. Separately, on November 17, Mizuho’s Irina Rivkind Koffler reiterated a Hold rating on the stock and has a price target of $12.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Maris and Irina Rivkind Koffler have a yearly average loss of -1.1% and a return of 14.9% respectively. Maris has a success rate of 42% and is ranked #3713 out of 4730 analysts, while Koffler has a success rate of 48% and is ranked #285.

Sentiment on the street is mostly neutral on TEVA stock. Out of 19 analysts who cover the stock, 12 suggest a Hold rating , 4 suggest a Sell and 3 recommend to Buy the stock. The 12-month average price target assigned to the stock is $14.93, which represents a potential upside of 9% from where the stock is currently trading.

Teva Pharmaceutical is a global pharmaceutical company, which provides patient-centric healthcare solutions. It operates through two segments: Generic Medicines and Specialty Medicines. The Generic Medicines segment includes chemical and therapeutic equivalents of originator medicines in a variety of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. The Specialty Medicine segment engages in the provision of core therapeutic areas of central nervous system medicines.


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