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Teva restructures business units, makes management changes

Teva Pharmaceutical Industries Ltd. said it would restructure its business units by combining the global groups for generics and specialty medicines into one commercial organization.

The newly created organization will operate from three regions, North America, Europe and growth markets, with each managing the entire portfolio of drugs, including generics, specialty and over the counter.

Some of the former global units will be integrated into the new structure, while others will be made redundant.

The former generic as well as specialty research and development, or R&D, organizations will be combined into one global group with overall responsibility for all R&D activities.

A new marketing and portfolio function will be responsible for overseeing the interface between regions, R&D and operations throughout all product lifecycle stages.

As a result of the restructuring, the company said its president of global R&D and chief scientific officer, Michael Hayden; the president and CEO of global specialty medicines, Rob Koremans; and the president and CEO of the global generic medicines group, Dipankar Bhattacharjee, will retire from the company, effective Dec. 31.

The company also appointed Michael McClellan as CFO and executive vice president. The company also appointed executive vice presidents for several other segments.

McClellan was appointed as interim group CFO in July 2017, prior to which he had been serving as senior vice president and CFO of global specialty medicines since July 2015.

Teva said all appointments were effective Nov. 27, while the retiring executives will stay with the company to support the transition until the end of the year.

President and CEO Kåre Schultz said the company was already working on a detailed restructuring plan and will share it in mid-December.

Reuters reported that Teva responded to the Israeli parliament in a letter after the parliament's state control committee called an emergency meeting to discuss rumors about company's plan for mass layoffs in Israel.

Teva stated in the letter that it needed "deep, meaningful steps around the world," according to the Reuters.

"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 said in a statement.