Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Ltd.

Type	Public
Traded as	NYSE: TEVA TASE: TEVA
Industry	Pharmaceutical
Founded	1901
Headquarters	Petah Tikva, Israel
Key people	Erez Vigodman, President and Chief Executive Officer[1] Dr. Phillip Frost, Chairman Eyal Desheh, Chief Financial Officer
Products	Pharmaceuticals
Revenue	$20.3 billion USD (FY 2012)
Operating income	$2.2 billion USD (FY 2012)
Net income	$1.9 billion USD (FY 2012)
Employees	46,000 (2012)
Website	tevapharm.com

Teva Pharmaceutical Industries Ltd. (Hebrew: טבע תעשיות פרמצבטיות בע"מ‎) is an international pharmaceutical company headquartered in Petah Tikva, Israel. It specializes in generic and proprietary pharmaceuticals and active pharmaceutical ingredients. It is the largest generic drug manufacturer in the world^[2] and one of the 15 largest pharmaceutical companies worldwide.^[3]

Teva's facilities are located in Israel, North America, Europe, and South America. Teva is a member of both the New York Stock Exchange and the Tel Aviv Stock Exchange.

Eli Hurwitz was the CEO of Teva from 1976 to 2002, and chairman of the board until his death in 2011.^[4][5]

Shlomo Yanai was the CEO of Teva from March 2007 to May 2012, having announced his resignation at the beginning of that year.^[6]

Jeremy Levin was the CEO from May 2012 to October 30, 2013, when he announced his resignation.^[7] In January 2014, Erez Vigodman, the CEO of MA Industries replaced Eyal Desheh as the CEO of Teva, with the latter returning to his role as chief financial officer.^[8]

History

Worker at Assia plant in the 1930s

Teva plant, Har Hotzvim, Jerusalem

Teva's earliest predecessor was Salomon, Levin, and Elstein Ltd., a wholesale distributor based in Jerusalem that was founded in 1901. During the 1930s, new immigrants from Europe founded several pharmaceutical companies including Teva ("Nature" in Hebrew), Assia, and Zori. In 1951, Teva raised capital through the newly founded Tel-Aviv Stock Exchange.

In 1964, Assia and Zori merged and acquired a controlling interest in Teva. In 1976, these three companies merged into the modern Teva Pharmaceutical Industries Ltd. In 1980, Teva continued to follow its vision of becoming one of the world's biggest pharmaceutical companies by acquiring Ikapharm, then Israel's second largest drug manufacturer.^[9]

In 1982, Teva was granted approval by the U.S. Food and Drug Administration (FDA) for its Kfar Saba manufacturing plant, an essential milestone for marketing pharmaceuticals in the USA.

In 2005, Teva opened a new, state-of-the-art pharmaceutical manufacturing plant in Har Hotzvim, a technology park in Jerusalem. The plant received FDA approval in early 2007.^[10] Teva entered the Japanese market in 2005, and in 2008 established a generics joint venture with Kowa.^[11]

In 2008, sales totalled $11.08 billion, $13.9 billion in 2009, and in 2010 total sales rose to $16.1 billion, of which a major portion was in Europe and North America. Teva acquired its U.S. rival Ivax Corporation in January 2006, Barr in 2007 and Ratiopharm in 2010.

In 2010, Teva announced that it would be building its main distribution center for the Americas in Philadelphia, PA and was considering opening its US headquarters in the area.^[10] In 2010, it had 39,660 employees. In Israel, the number of workers rose 7.5% to 6,774.^[12] In March 2010, Teva acquired German-based company Ratiopharm in a nearly $5 billion deal, significantly expanding its European coverage.^[13][14][15] In October 2010, Teva entered a license agreement with BioTime to develop and market BioTime's OpRegen for the treatment of age-related macular degeneration,^[16] an effort that in 2013 received $1.5 billion in funding from Israel's Office of the Chief Scientist.^[17] In May 2011 Teva announced it will purchase Cephalon for US$6.8 billion as part of its effort to expand its presence in the proprietary pharmaceuticals sector.

Within Teva operates Teva Active Pharmaceutical Ingredients (TAPI) as a stand-alone business unit. On top of supplying a major share of Teva's own needs, the TAPI division is an active competitor in world markets. In 2009, TAPI's sales to third parties totaled $565 million, and in 2010 sales rose by 13% to a total of $641 million. As of 2013 All Teva products are FDA approved.

Mergers and acquisitions

On December 23, 2008, Teva acquired Barr Pharmaceuticals for US$7.5 billion, making Barr and Pliva (which Barr bought earlier) part of Teva.^[18] On March 18, 2010, Teva announced that it planned to acquire German generic Ratiopharm for US$5 billion. The deal was completed in August 2010.^[10]

In May 2011, Teva bought Cephalon for US$6.8 billion.^[19] Shortly after this announcement, Teva announced the ¥40 billion purchase of a majority stake in the Japanese generic drug company Taiyo Pharmaceutical Industry, a move to secure a Japan-local production facility.^[11] Teva completed the $934 million acquisition on July 2011.^[20]

Research and Development

Copaxone, a Teva patented drug

Teva holds a patent on multiple drugs including: Copaxone (for the treatment of multiple sclerosis), now the world's best selling MS drug, and Azilect (sold as Agilect in some countries) for treatment of Parkinson's disease.

In June 2006, Teva received from the FDA a 180-day exclusivity period to sell simvastatin (Zocor) in the U.S. as a generic drug in all strengths except 80 mg. Teva presently competes with the maker of brand-name Zocor, Merck & Co.; Ranbaxy Laboratories, which has 180-day exclusivity for the 80 mg strength; and Dr. Reddy's Laboratories, whose authorized generic version (licensed by Merck) is exempt from exclusivity.

In June 2010, the company announced it would discontinue its production of propofol, a major sedative estimated to be used in 75% of all US anesthetic procedures.^[21]

Legal issues

On June 25, 2010, Bayer sued Teva for falsely claiming that Gianvi, Teva's Generic of Yaz, was "stabilized by betadex as a clathrate."^[22] The lawsuit stems from Bayer's US patent, 5798338, on the binding and preservative agents that were not in fact present in Gianvi. "In the preparation of such low-dosed dosage forms, strong fluctuations of the active ingredient concentrations in the dosage units occur almost unavoidably (inadequate content uniformity), which manifest themselves more strongly, the smaller the amount of the active ingredient. It has now been found that the drawbacks that are observed especially in the preparation and storage of dosage forms which contain low-dosed steroidal sex hormones can be avoided, at least to a large extent, if dosage forms are prepared that contain powdery cyclodextrin clathrates of these active ingredients."^[23] The settlement of the lawsuit resulted in Teva changing its product marketing to remove the claim that it used the same ingredients as Yaz.^[24] Bayer's patent is on a method specifically designed to prevent oxidative degradation of the estrogen.

Subsidiaries

Pharmaceutical products

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See also

• Economy of Israel
• Science and technology in Israel
• Health care in Israel
• BioTime
• Teva Active Pharmaceutical Ingredients (TAPI)
• Qualitest

References

External links

• Teva Pharmaceutical Industries Official website
• Pharmaceutical Executive (PDF)
• "Recent Product Launches, Teva Pharmaceuticals USA". Retrieved 2008-02-21. 
• The Economic Times

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