Executive management teams are a fundamental component on how a company runs. And often companies that lose their way or that are facing adversity may need a change at the top. Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) seems to be the perfect example, and with its change investors are sending the shares much higher.
Keep in mind that Teva’s stock has been absolutely demolished over the past two years. In the summer of 2015, this was close to a $70 stock, and it has fallen incredibly since then.
To put out some numbers, and excluding Monday’s move, Teva’s stock has dropped 57% in 2017 alone and about 70% in the past 52 weeks. Since the stock’s all-time high ($72.31) in 2015, it fell 79% to a multiyear low of $15.22 in the past month.
In terms of its executive management team, Teva has named Kåre Schultz to become president and chief executive officer. Schultz will succeed Dr. Yitzhak Peterburg, who will continue to serve as interim CEO until Schultz joins the firm.
According to a release from Teva:
Mr. Schultz is a seasoned veteran in the healthcare industry with a distinguished, nearly thirty year career in global pharmaceutical and healthcare companies. Over the course of his career, Mr. Schultz has developed a unique perspective overseeing generic and specialty drug portfolios, while managing complex business operations around the world. He most recently served as the President and Chief Executive Officer of H. Lundbeck A/S, where he is credited with leading significant restructuring initiatives and launching a robust turnaround strategy focused on driving a sustainable global cost structure and operational model. As a result of his leadership, the company is on track to achieve all-time high revenue and earnings. Prior to his role as President and CEO of H. Lundbeck A/S, Mr. Shultz served as Chief Operating Officer of Novo Nordisk, where he had a key role in building the company into one of the world’s best-performing drugmakers and implementing a metrics-focused approach to the company’s operations.
The response from investors signals approval for Schultz, but can he bring home the bacon?
Shares of Teva were last seen up about 18% at $18.32, with a consensus analyst price target of $25.00 and a 52-week range of $15.22 to $52.66.