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Teva shuts down offices in New York, Washington, DC


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Teva shuts down offices in New York, Washington, DC

Teva Pharmaceutical Industries Ltd. has closed its offices in New York and Washington, D.C., Israeli newspaper Calcalist reported Feb. 23.

CEO Kåre Schultz said in a meeting with upper management and investors that the New York offices were becoming costly to run and that the Washington, D.C., offices were mainly being used by lobbyists, the newspaper reported.

Schultz explained that since Teva is part of the U.S. trade group Generic Pharmaceutical Association, it does not require its own lobbyists.

In the meeting, CFO Michael McClellan said that in the long term the company plans to refinance its debt for 2019-2021 and has no intention of making any significant acquisitions in the next five years, Calcalist reported.

The news comes as the company is planning to consolidate seven U.S. offices into one location and disclosed plans in December 2017 to eliminate 14,000 jobs worldwide, or more than 25% of its total workforce, over the next two years as part of a restructuring plan to cut costs by $3 billion by the end of 2019.

The Israeli drugmaker recently laid off more than 200 workers in and around its North American headquarters in North Wales, Pa. Teva has also stated that it would restructure its business units and combine the global groups for generics and specialty medicines into one commercial organization.

Also, the generic drugmaker is also closing its tablet factory in Jerusalem by the end of 2019.