Sector News

Teva may be shooting itself in the foot when it comes to CEO search: analyst

February 13, 2017
Life sciences

Earlier this week, struggling and newly CEO-less Teva announced it would embark on a strategic review to help find ways to turn things around. Problem is, that process could keep it from landing a top-tier helmsman, one analyst figures.

As interim chief Yitzhak Peterburg said in a statement following the announcement of skipper Erez Vigodman’s departure, he will be “working with the entire Teva team to conduct a thorough review of the business to find additional opportunities to enhance value for shareholders.” But to RBC Capital Markets’ Randall Stanicky, the timing for that review is puzzling.

The way Stanicky sees it, it makes more sense to bring the new chief aboard before running the review. “What does this say about how much strategic input a new CEO will have? More to the point, how is this going to help recruit a top global executive?” he wrote in a Friday research note. “To us this is a concern that Teva’s ‘search’ will ultimately revert to a local executive who is not a known leader in global pharma,” he added.

He’s not alone in that concern. Activist investor and longtime Teva critic Benny Landa has said time and again that Teva needs a pharma vet at the wheel. “The most suitable CEO is someone with a strong background in global pharma—ideally, a person who has managed a pharma company or was in a very senior position in a pharma company,” he told Israeli newspaper Globes this week.

Landa, though, has some other recommendations for Teva, including splitting the Petah Tikva-based drugmaker in two. A generics-specialty divide “ensures that each company gets its fair share of the debt and cash in order to give each company its chance to take off,” he said.

As Stanicky wrote to clients, many investors have been asking over the last week if a dramatic change is something Teva does in fact need—and whether enacting one is even possible. And while he didn’t lay out the case for a straight breakup, he did point out that selling the non-MS portion of the branded portfolio and pipeline—while hanging onto the blockbuster Copaxone franchise—could take out about two-thirds of Teva’s debt, “leaving a reasonably levered and more focused generic platform.”

Shareholders, meanwhile, will be looking for clarity when the company reports Q4 earnings Monday. “There remain several unanswered questions that need to be addressed on the upcoming earnings call,” Stanicky noted.

By Carly Helfand

Source: Fierce Pharma

comments closed

Related News

November 28, 2021

Founder-led biotech is making space for ideas—and diverse leaders—where it didn’t exist before

Life sciences

Decades ago, the founder-led biotech was rare and considered the tougher path to follow. Now there is a trend of founder-led biotechs that have risen in prominence in recent years, going from startup to well known with lightning speed. Scientists-turned C-suite occupants know their technology inside out. They’ve got credibility both at the bench working with their research teams and in the boardrooms selling their future products.

November 28, 2021

Pfizer to become $100B behemoth next year thanks to COVID-19 drug and vaccine: analyst

Life sciences

Pfizer’s revenue could reach $101.3 billion in 2022, with major contributions coming from the company’s BioNTech-partnered COVID vaccine and an antiviral therapeutic that has shown stellar clinical data, SVB Leerink analyst Geoffrey Porges projected in a Monday note to clients.

November 28, 2021

GlaxoSmithKline takes aim at sick pay access inequities with microgrant program and new campaign

Life sciences

In a survey commissioned by GlaxoSmithKline’s consumer health division of 2,000 working people in the U.S., almost 70% admitted to clocking in while sick, often because they couldn’t afford to lose a day’s pay. Black and Latina women were 10% more likely than white women to shun taking sick time for fear of fallout from their boss, according to the company’s 2021 Temperature Check Report.

Send this to a friend