CEO at Teva Looking for More Growth
Teva Pharmaceutical Industries purchase of $40.5 billion for the Allergan generics unit that closed on Tuesday does not signal the drug maker based in Israel is letting up in a quest for more innovative branded medications.
Efforts to put new copycat drugs as well as integrate operations through it largest ever acquisition does not mean the business will be confined to only generics, said CEO of Teva Erez Vigodman from the headquarters of Teva located in Petach Tikva, Israel.
He added that the company strategy as well as vision was much broader than that.
Teva reclaimed the top spot as the biggest maker in the world of generic medicines with the purchase of Allergan, but that transaction comes during a difficult period.
Copaxone, a top selling multiple sclerosis injection, which at one time delivered half the profits at the company, is now facing the possibility of cheaper copies.
The comments made by the Teva CEO suggest he would not hesitate in using one of the favorite tools of Teva – acquisitions – to snag up new products.
The company plans to target specialty assets that are attractive or branded drugs or pipeline assets, which fit in the different disease areas it is trying to treat, said the CEO on Tuesday.
The drug maker is looking for medicines to help migraines, pain, movement disorders, neuro-degenerative and respiratory diseases.
Even so, the integration of Allergan is the No. 1 priority of Teva according to its CEO, who has pledged an increase in revenue by up to 40% by 2019.
The macroeconomics that underlies the rationale of the CEO for the Allergan acquisition has become worse since the accord became public last year.
Regulators in the U.S. sped up the approvals of some generic drugs, which created additional competition and drove costs down, while forcing Teva into divesting assets to overcome more concerns over antitrust.
Vigodman says generics are growing and will be close to $300 billion before 2020 and Teva is planning to use that to its advantage by launching every year 1,000 to 1,500 new products, which would mitigate the expected decline of 5% in prices.
The deal for Allergan has put Teva into a position of strength he said. In the U.S., the company has more than 338 treatments that are awaiting approval by the U.S. Food and Drug Administration and was first to file close to 115 applications to introduce different generic versions of drugs.