Teva Announces New Organization Structure and Leadership Changes



JERUSALEM–(BUSINESS WIRE)–Teva Pharmaceutical Industries Ltd. (NYSE & TASE:TEVA) announced today a
new organization and leadership structure aimed to achieve better
commercial focus and drive value creation. The new structure will enable
strategic alignment across the portfolio, across regions and between
functions, leveraging scale, enhancing agility, extracting efficiencies
and providing increased proximity to the markets. This new structure
will be implemented effective immediately.

Kåre Schultz, Teva’s President and CEO, said, “Teva is taking decisive
and immediate action to address external pressures and internal
inefficiencies. Our new company structure will enable stronger alignment
and integration between R&D, operations and the commercial regions,
allowing us to become a more agile, lean and profitable company.”

Schultz continued, “We will focus on driving sustainable value creation.
The new management team will position Teva for turnaround in the short
to medium term. We are already working on a detailed restructuring plan
for Teva and will share it in mid-December. It remains our absolute
priority to stabilize the company’s operating profit and cash flow in
order to improve our financial situation, while being focused on
short-term revenue and cash generation, and at the same time, ensure we
deliver on our commitment to supply high-quality medicines to patients
around the world.”

New structure

  • The commercial business will no longer have two separate global groups
    for generics and specialty medicines, and will be integrated into one
    commercial organization, operating through three regions – North
    America, Europe and Growth Markets. Each of the regions will manage
    the entire portfolio – including generics, specialty and OTC – with
    full end-to-end P&L accountability. Some of the former global units
    will be integrated into the new structure, while others will be made
  • The former Generic R&D and Specialty R&D organizations will be
    combined into one global group with overall responsibility for all R&D
    activities – generic, specialty and biologics – maximizing ROI through
    better focus and efficiency.
  • A newly formed Marketing & Portfolio function will be responsible for
    overseeing the interface between regions, R&D and operations
    throughout all product lifecycle stages and optimizing generic and
    specialty portfolios across the therapeutic areas.
  • The new structure will enhance alignment and seamless integration
    between Teva’s Global Operations, the commercial regions, R&D and the
    Portfolio function, will increase productivity and simplify the
  • The commercial structure will rely on one leaner supporting
    organizational infrastructure that includes Finance, Legal, HR, and
    Global Brand & Communications.

As a result of these changes, Dr. Michael Hayden, Dr. Rob Koremans and
Dipankar Bhattacharjee will retire from Teva, effective December 31,

New executive management team

Michael (Mike) McClellan is appointed Executive Vice
President, Chief Financial Officer
and will oversee the Finance
Group, Business Development, Investor Relations and Information
Technology. Previously, he served as Interim CFO and as
SVP & CFO Global Specialty Medicines. Prior to joining Teva, Mike was
the U.S. CFO at Sanofi.

Dr. Hafrun Fridriksdottir is appointed Executive Vice
President, Global R&D
. Previously, she served as President of
Global Generics R&D. Prior to joining Teva, Hafrun served as Senior Vice
President and President of Global Generics R&D in Allergan plc.

Brendan O’Grady is appointed Executive Vice President, North
America Commercial
. Brendan has previously served as Chief
Commercial Officer, Global Specialty Medicine, as interim head of Teva’s
European specialty business and as President and CEO for Teva’s North
America generics business and as VP US Market Access and Reimbursement.

Richard Daniell is appointed Executive Vice President,
European Commercial,
after having served as President and CEO, Teva
Generics Europe.

Gianfranco Nazzi is appointed Executive Vice President, Growth
Markets Commercial
. Gianfranco has previously served as President
and CEO of Growth Markets at the Global Generic Medicines group, and
prior to that he was he has served as Senior Vice President, Specialty
Medicines Europe.

Sven Dethlefs is appointed Executive Vice President, Global
Marketing & Portfolio
. He previously served as Global Head of
Respiratory Medicines and as Chief Operating Officer, Teva Global

All appointments are effective immediately, while the retiring
executives will stay with Teva to support the transition until the end
of the year.

The following members of Teva’s executive management team will
continue in their current positions

Carlo de Notaristefani, Executive Vice President, Global Operations;

Iris Beck-Codner, Executive Vice President, Global Brand &

Mark Sabag, Executive Vice President, Global Human Resources;

David Stark, Executive Vice President, Chief Legal Officer.

KÃ¥re Schultz concluded, “I would like to thank Dr. Michael Hayden, Dr.
Rob Koremans and Dipankar Bhattacharjee for their profound contributions
to Teva over the past decade and for their tireless dedication to the
many patients we serve.”

Bios of new appointments

Michael (Mike) McClellan has been serving as Teva Interim Group
CFO since July 2017. Prior to this role, he had served as SVP & CFO
Global Specialty Medicines since July 2015. Prior to joining Teva, Mike
was the U.S. CFO at Sanofi, where his career spanned nearly 20 years in
roles of increased responsibility in global finance and healthcare. Mr.
McClellan received his BSBA, Accounting & Economics from the University
of Missouri Trulaske College of Business.

Dr. Hafrun Fridriksdottir has been serving as Executive Vice
President, President of Global Generics R&D since February 2017, after
serving as Senior Vice President and President of Global Generics R&D
from 2016. Prior to joining Teva, from 2015 to 2016, Ms. Fridriksdottir
served as Senior Vice President and President of Global Generics R&D in
Allergan plc. From 2002 to 2015, she held positions of increasing
responsibility within the Actavis Group, including Senior Vice
President, R&D. From 1997 to 2002, Ms. Fridriksdottir served as
Divisional Manager of Development at Omega Pharma, until its merger with
Actavis. Ms. Fridriksdottir started her career as a scientist for 2
years at a research and development company owned by Pharmacia in
Sweden, after receiving an MS degree in pharmacy and a Ph.D. in physical
pharmacy from the University of Iceland.

Brendan O’Grady has been serving as Chief Commercial Officer,
Global Specialty Medicine division since Aug 2016. In addition, he
currently serves as the interim head of Teva’s European Specialty
business. Prior to these roles, Mr. O’Grady held the position of
President and CEO for Teva’s North America generic business in 2015 and
held various senior roles since he joined Teva in 2011 as Regional
Account Manager. Prior to joining Teva, Mr. O’Grady spent 10 years with
Sanofi predecessor companies in a variety of commercial and medical
affairs roles that began in field sales. He received his B.S. from
Geneseo State University, NY in Management Science/Marketing and holds
an M.B.A. from Baker University in Baldwinsville, Kansas.

Gianfranco Nazzi has been serving as President & CEO of Growth
Markets, Global Generic Medicines Group since March 2017. Mr. Nazzi
joined Teva as Senior Vice President Specialty Medicines Europe in 2014.
Prior to joining Teva, he served 7 years at AstraZeneca in various
senior roles, including Sales and Marketing Vice President Europe,
Global Vice President Respiratory, General Manager of the Balkans and
Vice President Primary Care in Italy. At GlaxoSmithKline he served for
two years as BU Director Metabolic & Cardiovascular and at Eli Lilly and
Company he served for 5 years in various sales and marketing roles in
both Italy and the US. He began his career at Danieli. Mr. Nazzi
received his BA degree in economics from the University of Udine, and
his Masters degree in Management Studies from SDA Bocconi.

Richard Daniell has been serving as President and Chief Executive
Officer, Teva Generics Europe since Dec 2016. Prior to that, he had
served as Chief Integration Officer Leading Actavis-Teva Integration
since Sep 2015 after holding various senior roles, including Chief
Operating Officer, Growth Markets and Regional General Manager for Teva
in the UK and Ireland from 2012 through 2014. Mr. Daniell joined Teva as
Senior Director Teva UK Limited in 2006, following the acquisition of
IVAX Pharmaceuticals UK. Prior to joining Teva, he served three years at
IVAX Pharmaceuticals UK as Director of Generics. Mr. Daniell received
his BSc in chemistry from the University of Auckland.

Sven Dethlefs has been serving as Global Head of Respiratory
Medicines, Global Specialty Medicines since January 2016. Prior to that,
he had served as Chief Operating Officer, Teva Global Operations, since
October 2013. Mr. Dethlefs joined Teva as General Manager, Teva Germany
in 2008. Prior to joining Teva, he served for over 11 years as a partner
at McKinsey & Company. Mr. Dethlefs received his PhD in biochemistry
from the FU Berlin/Pasteur Institute Paris.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading
global pharmaceutical company that delivers high-quality,
patient-centric healthcare solutions used by approximately 200 million
patients in over 60 markets every day. Headquartered in Israel, Teva is
the world’s largest generic medicines producer, leveraging its portfolio
of more than 1,800 molecules to produce a wide range of generic products
in nearly every therapeutic area. In specialty medicines, Teva has the
world-leading innovative treatment for multiple sclerosis as well as
late-stage development programs for other disorders of the central
nervous system, including movement disorders, migraine, pain and
neurodegenerative conditions, as well as a broad portfolio of
respiratory products. Teva is leveraging its generics and specialty
capabilities in order to seek new ways of addressing unmet patient needs
by combining drug development with devices, services and technologies.
Teva’s net revenues in 2016 were $21.9 billion. For more information,

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, which
are based on management’s current beliefs and expectations and are
subject to substantial risks and uncertainties, both known and unknown,
that could cause our future results, performance or achievements to
differ significantly from that expressed or implied by such
forward-looking statements. Important factors that could cause or
contribute to such differences include risks relating to:

  • uncertainties relating to the potential benefits and success of our
    new structure and recent senior management changes as well as the
    potential success and our ability to effectively execute a
    restructuring plan;
  • our generics medicines business, including: that we are
    substantially more dependent on this business, with its significant
    attendant risks, following our acquisition of Allergan plc’s worldwide
    generic pharmaceuticals business (“Actavis Generics”); our ability to
    realize the anticipated benefits of the acquisition (and any delay in
    realizing those benefits) or difficulties in integrating Actavis
    Generics; the increase in the number of competitors targeting generic
    opportunities and seeking U.S. market exclusivity for generic versions
    of significant products; price erosion relating to our generic
    products, both from competing products and as a result of increased
    governmental pricing pressures; and our ability to take advantage of
    high-value biosimilar opportunities;
  • our specialty medicines business, including: competition for our
    specialty products, especially Copaxone
    ®, our
    leading medicine, which faces competition from existing and potential
    additional generic versions and orally-administered alternatives; our
    ability to achieve expected results from investments in our product
    pipeline; competition from companies with greater resources and
    capabilities; and the effectiveness of our patents and other measures
    to protect our intellectual property rights;
  • our substantially increased indebtedness and significantly
    decreased cash on hand, which may limit our ability to incur
    additional indebtedness, engage in additional transactions or make new
    investments, and may result in a downgrade of our credit ratings;
  • our business and operations in general, including: our ability to
    develop and commercialize additional pharmaceutical products;
    manufacturing or quality control problems, which may damage our
    reputation for quality production and require costly remediation;
    interruptions in our supply chain; disruptions of our or third party
    information technology systems or breaches of our data security; the
    failure to recruit or retain key personnel;the restructuring of our
    manufacturing network, including potential related labor unrest; the
    impact of continuing consolidation of our distributors and customers;
    variations in patent laws that may adversely affect our ability to
    manufacture our products; our ability to consummate dispositions on
    terms acceptable to us; adverse effects of political or economic
    instability, major hostilities or terrorism on our significant
    worldwide operations; and our ability to successfully bid for suitable
    acquisition targets or licensing opportunities, or to consummate and
    integrate acquisitions;
  • compliance, regulatory and litigation matters, including: costs and
    delays resulting from the extensive governmental regulation to which
    we are subject; the effects of reforms in healthcare regulation and
    reductions in pharmaceutical pricing, reimbursement and coverage;
    potential additional adverse consequences following our resolution
    with the U.S. government of our FCPA investigation; governmental
    investigations into sales and marketing practices; potential liability
    for sales of generic products prior to a final resolution of
    outstanding patent litigation; product liability claims; increased
    government scrutiny of our patent settlement agreements; failure to
    comply with complex Medicare and Medicaid reporting and payment
    obligations; and environmental risks;
  • other financial and economic risks, including: our exposure to
    currency fluctuations and restrictions as well as credit risks; the
    significant increase in our intangible assets, which may result in
    additional substantial impairment charges; potentially significant
    increases in tax liabilities; and the effect on our overall effective
    tax rate of the termination or expiration of governmental programs or
    tax benefits, or of a change in our business;

and other factors discussed in our Annual Report on Form 20-F for the
year ended December 31, 2016 (“Annual Report”), including in the section
captioned “Risk Factors,” and in our other filings with the U.S.
Securities and Exchange Commission, which are available at
Forward-looking statements speak only as of the date on which they are
made, and we assume no obligation to update or revise any
forward-looking statements or other information contained herein,
whether as a result of new information, future events or otherwise.
are cautioned not to put undue reliance on these forward-looking


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