Sector News

Cost-cutting, check. Now, it’s on to dealmaking, Teva chief says

February 6, 2015
Life sciences
Okay, pharma. Teva is ready to make some deals now. Really. It’s serious.
 
It’s a mantra that’s seen quite a bit of play since CEO Erez Vigodman took up the reins at the generics giant early last year. But now, after a year of focusing on cutting costs and debt, and turning things around at the struggling drugmaker, he really means it.
 
“In 2015 we are reorienting towards inorganic moves,” he said on the company’s fourth-quarter conference call, as quoted by Reuters. Translation: We’re shopping.
 
As he’s said before, Vigodman has his eye on emerging markets and complex generics, to name a couple of potential deal targets. Rumors about a Mylan merger have persisted, though plenty of analysts have their doubts about that one. Perrigo, the OTC-focused drugmaker now based in Ireland, or Sweden’s Meda could also make sense, industry watchers have suggested.
 
So far, Teva itself has been quiet on the acquisition front, despite the wave of deals that took pharma by storm in 2014. “Teva has a healthy business, but in this environment if you’re not doing deals, you’re probably not taking advantage of the opportunities that are out there,” Gabelli & Co. analyst Kevin Kedra told Bloomberg last month.
 
Whatever M&A moves Teva does ultimately make could help the company on its quest to return to growth–especially if they’re in the generics department. Last quarter, generics revenue fell 8% to $2.47 billion, propelling a 4.8% overall sales drop. The decline was in line with analyst expectations, Bloomberg said.
 
Teva’s generics sales also took a dip on the full year, despite contributions from knockoffs of AbbVie’s heart pill Niaspan and Merck’s  brain cancer drug Temodar.
 
By Carly Helfand
 

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

November 27, 2020

AbbVie lifts insider Jeffrey Stewart to commercial chief as company veteran Carlos Alban retires

Life sciences

AbbVie will soon have a new chief commercial officer, who’ll assume the heavy responsibility of navigating the Illinois pharma’s marketing transition from megablockbuster Humira.

November 27, 2020

Belgium biotech argenx nabs Bayer speedy review voucher for a cool $98M

Life sciences

The biotech, which has a series of deals across Big Pharma, will use the voucher, which can speed up the regulatory process for a new drug, for its late-stage drug efgartigimod—but not in the indication you might think.

November 27, 2020

Galapagos sells off Fidelta as CRO activities ‘no longer fit with its strategy’

Life sciences

Galapagos is selling off its contract research organization Fidelta for $37 million to Polish life science company Selvita. Fidelta focuses on inflammation, fibrosis and anti-infectives, with 181 employees at the helm.

Send this to a friend