Sector News

Teva shutters New York, D.C. offices as part of U.S. consolidation drive

February 26, 2018
Life sciences

Teva is working to consolidate seven U.S. offices under one roof, and that means saying bye-bye to its New York and Washington, D.C., locations.

The Israeli drugmaker has already shuttered office sites in the two East Coast hubs, CEO Kåre Schultz—the architect of Teva’s restructuring—told Israeli newspaper Calcalist.

Because the New York offices were pricey and the Washington offices were used mainly by lobbyists, they were clear picks to be crossed off Teva’s list, Schultz explained. The way he sees it, as a member of U.S. trade group the Association for Accessible Medicines, Teva doesn’t need its own lobbying firepower.

The two sites won’t be the only ones to close their doors as Teva works to implement Schultz’s $3 billion cost-cutting plan, which is set to claim a whopping 14,000 jobs. When all is said and done, only one U.S. office location will remain, and the company hasn’t yet said where that will be.

That uncertainty has stirred up concern in and around its current U.S. headquarters in North Wales, Pennsylvania, which has already begun feeling the effects of the cost-cutting drive. Last month, Teva let go of 65 employees across three buildings in North Wales and nearby Horsham, 96 across sites in Fraser and Great Valley, Pennsylvania, and 47 more at a West Chester, Pennsylvania, location.

Meanwhile, some analysts and investors already like what they’re seeing when it comes to the execution of Schultz’s turnaround plan. Credit Suisse analyst Vamil Divan, M.D., recently upgraded the company’s shares, pointing to “early signs of execution.”

Billionaire Warren Buffett may also be a fan; last week, his company, Berkshire Hathaway, reported that it had grabbed 18.9 million American depositary receipts of Teva, worth close to $358 million.

By Carly Helfand

Source: Fierce Biotech

comments closed

Related News

June 24, 2022

Echosens and Novo Nordisk announce partnership to increase awareness and advance early diagnosis of NASH

Life sciences

Echosens, a high-technology company offering liver diagnostic solutions, and Novo Nordisk A/S, a leading global healthcare company, announced a partnership to advance early diagnosis of non-alcoholic steatohepatitis (NASH) and increase awareness of the disease among patients, healthcare providers and other stakeholders.

June 24, 2022

argenx receives positive CHMP opinion for Efgartigimod for the treatment of adult patients with Generalized Myasthenia Gravis in Europe

Life sciences

Positive opinion based on Phase 3 ADAPT trial showing efgartigimod provided clinically meaningful improvements in strength and quality of life measures. If approved, efgartigimod will be the first neonatal Fc receptor (FcRn) blocker for the treatment of adults in Europe living with rare neuromuscular disease generalized myasthenia gravis (gMG).

June 24, 2022

Galapagos finally takes M&A plunge, spending $251M for 2 biotechs in CAR-T push

Life sciences

Galapagos CEO Paul Stoffels, M.D., has finally taken the plunge on M&A. The newly minted chief executive has signed not one but two deals in an attempt to right the ship, bringing two small biotechs aboard for a combined 239 million euros ($251.4 million).