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Teva to cut 5000 jobs as part of restructuring plan


Teva announced Thursday that as part of a restructuring programme introduced last year, it will reduce its global workforce by approximately 10 percent, or around 5000 employees, with the majority of cuts completed by the end of 2014. The company noted that as a result it now expects to realise annual cost savings of approximately $2 billion by the end of 2017, compared to the previously guided range of $1.5 billion to $2 billion.

CEO Jeremy Levin remarked «Teva is managing its operations to achieve high levels of effectiveness in the short term, while pursuing opportunities for the long term." He added that «the accelerated cost reduction programme will strengthen our organisation while improving our competitive position in the global marketplace.»

The restructuring initiative included actions to divest non-core assets, increase organisation effectiveness, improve manufacturing efficiency and reduce excess capacity. Teva indicated Thursday that it «continues to identify opportunities to optimise value through the selective trimming of assets that no longer fit its core business or are not critical to its future." The drug maker added that it «will scale down oversised parts of the company, while growing its generics business and core R&D programmes," which include high-value complex generics, expanding its presence in emerging markets and broadening its portfolio of specialty medicines and OTC businesses.

Teva indicated that it expects cost savings of $1 billion to be realised by the end of 2014, with 70 percent of the overall total anticipated by the end of 2015. The company said that the majority of the savings are expected to come from a reduction in the cost of goods, with part of this amount reinvested in «high-potential programmes." The drugmaker noted that the investments will include the development of its complex generics and specialty pharmaceutical pipeline, which comprises more than 30 late-stage programmes.

The company also reaffirmed its full-year financial guidance and said it expects to end 2013 near the midpoint of its original ranges for revenue of $19.5 billion to $20.5 billion and earnings per share of $4.85 to $5.15.

Source: firstwordpharma.com

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