Shares of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) rose Monday after the company announced a reorganization some of its top leadership positions. This stock has been brutalized in 2017, and while a change like this might sink any other company’s shares, investors are welcoming it at Teva. Maybe this might stop the bleeding.
Excluding Monday’s move, Teva shares had tanked, down 62% year to date, Over the past 52 weeks, the stock is down 64%.
Perhaps the biggest change mentioned was that the company will no longer have two separate global groups for its generic and specialty drug businesses. Instead, Teva will now operate in three regions: North America, Europe and Growth Markets. Each of these regions will manage the entire portfolio — including generics, specialty and over the counter — with full end-to-end profit and loss accountability.
Some of the former global units will be integrated into the new structure, while others will be made redundant.
Also, a newly formed Marketing & Portfolio function will be responsible for overseeing the interface between regions, R&D and operations throughout all product lifecycle stages and optimizing generic and specialty portfolios across the therapeutic areas.
Along with this, there were a few changes to senior leadership. Dr. Michael Hayden, president of global research and development, Dr. Rob Koremans, president and chief executive of global specialty medicines, and Dr. Dipankar Bhattacharjee, president and CEO of global generic medicines group, will be retiring at the end of 2017.
Here are a few of the new faces of the Senior management team, taking effect immediately:
- Mike McClellan is appointed executive vice president and chief financial officer and will oversee the Finance Group, Business Development, Investor Relations and Information Technology.
- Dr. Hafrun Fridriksdottir is appointed executive vice president of Global R&D.
- Brendan O’Grady is appointed executive vice president of North America Commercial.
- Richard Daniell is appointed executive vice president of European Commercial, after having served as president and CEO, Teva Generics Europe.
- Gianfranco Nazzi is appointed executive vice president of Growth Markets Commercial.
- Sven Dethlefs is appointed executive vice president of Global Marketing & Portfolio.
Shares of Teva were last seen up over 5% at $14.35, with a consensus analyst price target of $14.26 and a 52-week range of $10.85 to $38.49.