A Conversation With Teva's Interim CEO And Chair

On Feb. 6, Teva Pharmaceutical Industries Ltd (ADR) TEVA announced CEO Erez Vigodman was stepping down and chairman of the board Yitzhak Peterburg would take over as the interim CEO, while Sol Barer would take on the role of the chairman of the board.

Bernstein’s Aaron (Ronny) Gal maintains an Outperform rating on the company, with a price target of $42.

Discussions With Interim Team

In an interview with the analyst, Peterburg and Barer said that following the transition, there would be no changes to Teva Pharma’s dividend policy, although they did not affirm the earnings guidance, despite direct questions.

They also said following the recent departures, no further departures were expected at this time,and a global search had also begun for a new CEO.

“When asked if he could become permanent CEO, Dr. Peterburg emphasized that he is the interim CEO,” Gal reported, while mentioning that neither Barer nor Peterburg elaborated on the criteria for the CEO search.

When asked about plans for strategic action before the new CEO was elected, the two Teva Pharma executives said their priority was execution and realization of cost synergies, and they did not intend to be a “care-taker” team until the new CEO was appointed.

Following the interview, the analyst stated, “Dr. Peterburg is much more experienced within Teva. He is less experienced with foreign investors, although we have seen him be quite effective during the last CEO transition.”