Erez Vigodman, CEO of Israeli pharmaceutical giant Teva Pharmaceuticals, has stepped down from the company and its board of directors. Nevertheless, leverage will likely limit how much change TEVA can embark on given its 3.5x target by end of 2017 (which is end of 2018 in RBC's model reflecting generic 3TW Copaxone).
"We find it interesting that Teva would pursue a review before naming a permanent CEO, which may be suggestive of further close involvement of the board and broader management team", Stanicky said. "It doesn't send a good signal about the future of the company, though a new CEO may be just what the company needs to turn things around".
The announcement came after the stock market closed Monday, and just a week after a federal court in DE rejected four of Teva's claims of patent infringement on its top-selling multiple sclerosis medicine Copaxone.
With shares trading for less than seven times forward earnings, it is clear that Wall Street has given up on Teva's stock.
Before that, Teva disappointed investors when it reported a low revenue forecast at the beginning of the year and the company's costly acquisition of Actavis Generics last year still has investors wary.
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Russian Federation will also have to wait until WADA has reinstated its anti-doping agency Anderson said. Their ban has been extended by the IAAF ruling them out of the championships.
Vigodman's tenure was short by most standards, though Teva has cycled through several CEOs in recent years. Instead, there was more bad news.
Last year, Teva paid about $40 billion to acquire Allergan's generics unit and solidify its spot as the world's largest generic drugmaker. Teva's also been dealing with the loss of patent protection on Copaxone, its blockbuster multiple sclerosis drug.
US Congress began investigating drug price fixing in 2014 in response to media reports detailing sharp rises in generic drug prices. For perspective, management had previously stated that it expected to wring out more than $1.4 billion in annual cost savings. He was a founder of the biotechnology group at Celanese Corporation, later spun off as Celgene Corporation, where he served in top leadership roles from 1987 to 2011, including as chairman and CEO from 2007 to 2010.
Earlier in his career, he served as president and CEO of Cellcom Israel Ltd., a director general of Clalit Health Services and CEO of Soroka University Medical Center. Dr. Sol J. Barer, another board member will replace Peterburg.