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Teva Reports Results of Strategic Review, Sees 14 Pipeline Projects Possible for Divestment, Discontinuation

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Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) today announced the results of
its strategic review of core therapeutic areas for the Company. The review
included an extensive evaluation of Teva's current and future capabilities to
address unmet patient needs, the competitive landscape, barriers to entry and
profitability with the purpose of creating a winning strategy to achieve
global leadership in each of the company's core therapeutic areas.

The Company reaffirmed its long-term commitment to develop patient-centric
solutions and significantly grow its specialty medicines business through
investment in research & development, marketing, business development and
innovation, while strengthening its commercial infrastructure and expanding
its offering of patient centric solutions. The core therapeutic areas on which
Teva will focus and where it has been establishing a leading position are
Central Nervous System (including multiple sclerosis, neurodegenerative
diseases and pain) and Respiratory (including asthma and chronic obstructive
pulmonary disease).

“Teva is committed to being a world-leader in CNS and Respiratory, both areas
underpinned by significant and growing unmet patient needs. With our existing
portfolio, integrated global R&D and innovation capabilities, we are in a
strong position to deliver for patients and payers, and to generate long-term
value for our shareholders,” stated Teva's President and CEO, Erez Vigodman.
“Our late-stage pipeline assets are expected to generate great value – out of
the 30 plus product launches we anticipate by 2019, with a total of over $4
billion in new revenue on a risk-adjusted basis, over 20 products will be
launched in these two core therapeutic areas.”

In other therapeutic areas, such as Women's Health and Oncology, where Teva
has a significant commercial presence, the Company will focus on market-ready
or close-to-market assets to maximize sustainable profitability. In addition,
Teva will continue to evaluate opportunities for commercially-oriented
activities and collaborations.

As a result of the strategic review, Teva has identified 14 pipeline projects
for discontinuation or divestment. These projects amount to more than $150
million in R&D costs in 2015 and in excess of $200 million for each of 2016
and 2017. These cost savings will be directed, in part, to increasing
resources in Teva's core therapeutic areas, while another part of which will
support the company's efficiency objective. This increased investment in core
therapeutic areas will increase R&D productivity, without increasing the
overall R&D budget.

Mr. Vigodman continued, “The decision announced today demonstrates progress in
our efforts to solidify the foundation of the company, drive organic growth
and ensure that we are pursuing the highest potential opportunities, both for
patients and for the company. It will allow us to more efficiently and
effectively focus and build leadership in key disease areas and deliver
sustainable long-term value.”

The company will discuss this decision following its strategic review as well
as other financial information as part of its third-quarter earnings
presentation.

Posted-In: News Asset Sales Press Releases

 

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