Amid Dispute With The Board, Teva CEO Denies He May Resign

Is there a dispute between the Teva Pharmaceuticals management and the board over day-to-day involvement? And did Teva ceo Jeremy Levin really threaten to resign? This is the buzz created by an Israeli television report that the Teva Executive Committee sent a letter urging the board to back off. This was followed by a denial that Levin considered resigning. The hubbub comes two weeks after Teva accelerated a $2 billion reorganization by eliminating 10 percent of its global workforce, or 5,000 jobs, including about 800 in Israel, where the drugmaker is based (back story). Three months ago, a US court invalidated the 2015 patent on its Copaxone multiple sclerosis drug, which generates about half of company earnings, and generic versions could arrive next year. The move immediately caused a political firestorm as the opposition Labor Party called for Teva executives and directors to take a pay cut; one Teva director blamed the cuts, in part, rising taxes (see this); workers at one Teva plant quickly went on strike; and a former Teva chairman criticized current chair Phillip Frost for letting Teva pay for his corporate jet and called the episode a public relations failure (read here). And now, the controversy has apparently exposed several simmering rifts among the Teva upper echelon.  The Teva Executive Committee, which met without Levin, wrote a rather pointed letter to Frost that suggests strong differences of opinions about how to proceed with the reorganization and cost-cu...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs