trending Market Intelligence /marketintelligence/en/news-insights/trending/1zBN23-5RscK-7cdw44eRg2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Teva CEO: 'It's going to look good' after 2-year, $3B cost-cutting plan

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory


Teva CEO: 'It's going to look good' after 2-year, $3B cost-cutting plan

After Teva Pharmaceutical Industries Ltd. slashes a quarter of its workforce and suspends its dividend, it plans to use the cash flow from improved operating performance, as well as from divestments, to pay down debt, CEO Kare Schultz said on a Dec. 14 special call.

Israeli Prime Minister Benjamin Netanyahu urged Schultz to keep the layoffs in Israel to a minimum before the company made the announcement, Reuters reported.

Teva's acquisition of Allergan plc's generics business in 2016 saddled the drugmaker with debt. It has sold off certain assets of its women's health unit and Paragard intrauterine device in an attempt to reduce its debt.

The cost-cutting plan entails the reduction of Teva's cost base by $3 billion in two years, compared to an estimated cost base for 2017 of $16.1 billion. The company is targeting EBITDA-to-net-debt of below 4x by the end of 2020.

Following news of the restructuring plan, Teva's shares on NYSE were up 11.40% to $17.49 at 1:53 p.m. ET on Dec. 14.

Bloomberg News recently reported that Schultz has tapped advisory company Evercore Inc. to review options for the company's outstanding debt.

Schultz said the company currently has no plans of raising equity in any form, but he was optimistic regarding the cost reduction plans, which will be a two-year turnaround restructuring.

"In two years from now, it's going to look good. If we do well, then in five years it's going to look great," said Schultz.

Teva is reviewing each and every product worldwide and will make pricing adjustments to the necessary extent, with Schultz noting that revenues on profitable product lines will not be impacted by the cost-cutting initiative.

The company also plans on increasing the pricing of select product lines to make them profitable. "Some of them we will succeed, some we will not," the CEO stated, adding that the product lines that do not succeed will be discontinued.

In addition, the drugmaker will continue to look for additional opportunities to sell off non-core assets. "You will not see us doing big asset sales that are linked to pharmaceutical product sales, so to speak, be generic or specialty pharmaceuticals," added Schultz.

"In terms of the assets, then I'm also a believer in keeping all the good products we have. All the good assets we have in terms of actual products we're supplying," Schultz said.

Selling plants rather than closing them would likely be more financially beneficial for the drugmaker while also "soothing the sting of layoffs," Credit Suisse analyst Vamil Divan said in a Dec. 13 research note.

He wrote that any positive market reaction to the plans in Israel "could be premature."

Teva will provide its 2018 financial outlook in February.