Teva CEO Resigns Amid Dispute With The Board; Who Will Take The Job?

Amid reported clashes with the board and accelerated plans to cut $2 billion in expenses, Teva Pharmaceuticals ceo Jeremy Levin has resigned and will be replaced by executive vp and chief financial officer Eyal Desheh on an interim basis. The move comes just two days after Levin emphatically refuted reports that he had threatened to resign and branded such talk as “rumors” and an “invention.” His departure lays bare simmering disagreements – notably, with Teva chairman Phillip Frost - about the tactics needed to redirect the drugmaker, which is undergoing a large-scale reorganization that includes cutting 5,000 jobs, or 10 percent of its global workforce. The cuts caused a political firestorm in Israel, where Teva is based, and 800 Israeli jobs will now be eliminated through attrition instead. Frost, however, did not favor a conciliatory approach. “Slight differences couldn’t be resolved and we thought it best to part ways,” Frost said this morning in a testy conference call with analysts. “They were of a subtle nature, but did not have anything to do with strategy or direction of the company. I still have great respect and admiration for Jeremy.” Several days ago, the Teva Executive Committee met without Levin (pictured to the left) and reportedly sent a letter urging the board to step back from day-to-day involvement (back story), although Desheh denied that any letter existed.   The restructuring – and subsequent tumult - follows a significant setbac...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs