Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) shares turned south on Wednesday after the company said that it would be announcing its restructuring plan on Thursday. Previously, investors had responded positively to restructuring news, almost as if anything could pull this company out of the tailspin it has been in for this year.
In this case, Teva said that it would unveil a restructuring plan early Thursday, and this could include layoffs. According to Reuters:
The plan includes closing its research and development centre in the coastal city of Netanya, selling its logistics centre in Shoham and laying off a third of its 6,800 workers in Israel, Calcalist said, citing people familiar with the matter.
In late November, Teva said that it would be reorganizing some of its top leadership positions and investors cheered this news, sending the stock up roughly 5% at the time. The company also mentioned that it would 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, research and development and operations throughout all product lifecycle stages and optimizing generic and specialty portfolios across the therapeutic areas.
But as for Thursday, we will just have to wait and see what Teva has in store.
Excluding Wednesday’s move, Teva shares had tanked, down 54% year to date. Over the past six months, the stock is down 46%. However, in just the past month alone the stock is up about 40%.
Shares of Teva were last seen down over 6% at $15.47, with a consensus analyst price target of $14.66 and a 52-week range of $10.85 to $38.31.