Teva Pharmaceutical Industries has announced a restructuring plan to reduce its cost base, unify its organisation and improve profitability and productivity.
The plan aims to reduce the company’s total cost base from an estimated $16.1bn in 2017 to around $13bn by the end of 2019.
Teva hopes to achieve more than half of this reduction by the end of next year and expects to record a restructuring charge of at least $700m as a result of the plan’s implementation.
Further charges are expected following the closure and divestment of manufacturing plants, research and development (R&D) facilities, headquarters and other office locations, which are expected to result in the reduction of 14,000 positions worldwide.
The majority of these reductions are expected to occur next year, and most affected employees will be notified within the next 90 days.
Teva Pharmaceutical Industries president and CEO Kåre Schultz said: “We will execute this plan in a timely and prudent manner, remaining focused on revenue and cash flow generation, in order to make sure Teva is ready to meet all of its financial commitments.
“Teva will optimise its cost base while ensuring that we protect our revenues and preserve our core capabilities in generics and in select specialty assets, in order to secure long-term growth.”
Teva will work to improve profitability in all existing markets and will carry out a review of all R&D programmes.
Next year, the company expects to secure the launches of Austedo and fremanezumab tablets.