Teva Pharmaceutical Industries Ltd. shares rose 4% in Monday morning trade after the company announced a major reorganization and several top leadership changes. Cheap generic drug prices have put significant pressure on the generic drugmaker in recent months, and the changes — under new Chief Executive Kare Schultz — were described as a way to take “decisive and immediate action to address external pressures and internal inefficiencies,” according to a statement by Schultz. Teva, which previously organized its generics and specialty drug businesses in two separate units, will now instead operate through three regions — North America, Europe and Growth Markets — that will manage all Teva drugs “with full end-to-end P&L accountability,” the company said. Some of Teva’s previous business units will be retained, but not all, Teva said. Leadership changes include the retirement of Michael Hayden, president of global research and development, Rob Koremans, president and chief executive of global specialty medicines, and Dipankar Bhattacharjee, president and chief executive officer of the global generic medicines group, at the end of the year. The company’s new management team includes now-Chief Financial Officer and Executive Vice President Michael McClellan, Executive Vice President, Global R&D Hafrun Fridriksdottir, Executive Vice President, North America Commercial Brendan O’Grady, Executive Vice President, European Commercial Richard Daniell, Executive Vice President, Growth Markets Commercial Gianfranco Nazzi and Executive Vice President, Global Marketing & Portfolio Sven Dethlefs. Teva shares have dropped 13% over the last three months and 61% year-to-date, compared with a 6.5% rise in the S&P 500 over the last three months and a 8% rise in the Dow Jones Industrial Average .
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