Teva unclear on 2014 future
Teva's shakeup news continues to accumulate.
The generics and specialty drugmaker laid out two 2014 financial scenarios Tuesday that indicate the company is not sure what the next year is going to look like. The presentation provided investors with two possible revenue situations: One in which generic Copaxone does not exist ($19.8 to $20.8 billion in sales) and one in which generic Copaxone does ($19.3 to $20.3 billion in sales). Bloomberg reports that 2014 could be the first time the company's sales have fallen in 20 years.
The reason for the fuzziness is that the FDA has not yet approved a generic, and Teva says every month Copaxone is the standalone version of itself garners it an additional $78 million in sales. Short-term aside, Bloomberg says the expectation is that Copaxone sales are going to fall over the next five years because less onerous oral pills are expected to displace injectable medications.
The company also announced an executive board change in a separate statement: Board of Directors VP Moshe Many is leaving his post in January, when he will be replaced by Amir Elstein. The company said Many is leaving for personal reasons.
The change comes just months after the company announced it was cutting 10%, or 5,000, employees from its headcount and then-CEO Jeremy Levin walked out after reports of back-of-the-house clashes among executives. Levin told an Israeli news channel that he did not resign, reported the Associated Press, which said that Chairman Philip Frost told the same news channel “it just got to the point where the slight differences couldn't be resolved.”
Eyal Desheh stepped in as interim CEO in October.