I hate to see people lose their jobs, but on the other hand I love to see Big Pharma get crushed. According to this Philly.com report Pharmaceutical giant, Teva has announced they will be laying off 7,000 workers and possibly closing 15 factories.
The world’s biggest maker of generic drugs said Thursday that it will cut 7,000 jobs by year’s end, close or sell 15 factories over the next two years, and quit operations in 45 countries by the end of 2017.
None of the Teva Pharmaceutical Industries plants scheduled to be shut or sold is in Pennsylvania or New Jersey, and it appears the bulk of the jobs are not in the area, either.
After disappointing second-quarter earnings, Teva announced a dramatic streamlining plan. Shares closed down 24 percent, or $7.50, to $23.75.
The Israel-based company, with North American headquarters in North Wales, Montgomery County, has been looking for a new CEO since February, when Erez Vigodman stepped down as chief executive. His successor will face challenges.
Since the closing of the $41 billion Actavis generic acquisition, Teva has trimmed costs and by the end of 2017 will have reduced its head count by about 7,000. “Our team is committed to take decisive action quickly. We recognize that the results we are reporting today are disappointing,” Peterburg said.
The U.S. generic business was hurt by “accelerated price erosion and decreased volume, mainly due to customer consolidation,” he said. In addition, the Food and Drug Administration approved more generic drugs, resulting in increased competition, and some of Teva’s new product launches “were either delayed this quarter or subjected to more competition.”