Israel Science & Technology: Teva Pharmaceutical Industries
Teva Pharmaceutical Industries is an international pharmaceutical company headquartered in Petah Tikva, Israel. It specializes primarily in generic drugs, but other business interests include active pharmaceutical ingredients and to a lesser extent proprietary pharmaceuticals. It is the largest generic drug manufacturer in the world and one of the 15 largest pharmaceutical companies worldwide. Teva's facilities are located in Israel, North America, Europe, and South America. Teva is a member of both the New York Stock Exchange and the Tel Aviv Stock Exchange.
Teva's earliest predecessor was Salomon, Levin, and Elstein Ltd., a wholesale distributor based in Jerusalem that was founded in 1901. During the 1930s, new immigrants from Europe founded several pharmaceutical companies including Teva ("Nature" in Hebrew), Assia, and Zori. In 1951, Teva raised capital through the newly founded Tel-Aviv Stock Exchange.
In 1964, Assia and Zori merged and acquired a controlling interest in Teva. In 1976, these three companies merged into the modern Teva Pharmaceutical Industries Ltd. In 1980, Teva continued to follow its vision of becoming one of the world's biggest pharmaceutical companies by acquiring Ikapharm, then Israel's second largest drug manufacturer.
In 1982, Teva was granted approval by the U.S. Food and Drug Administration (FDA) for its Kfar Saba manufacturing plant, an essential milestone for marketing pharmaceuticals in the USA.
In 2005, Teva opened a new, state-of-the-art pharmaceutical manufacturing plant in Har Hotzvim, a technology park in Jerusalem. The plant received FDA approval in early 2007. Teva entered the Japanese market in 2005, and in 2008 established a generics joint venture with Kowa.
In 2008, sales totalled $11.08 billion, $13.9 billion in 2009, and in 2010 total sales rose to $16.1 billion, of which a major portion was in Europe and North America. Teva acquired its U.S. rival Ivax Corporation in January 2006, Barr in 2007 and Ratiopharm in 2010.
In 2010, Teva announced that it would be building its main distribution center for the Americas in Philadelphia, PA and was considering opening its US headquarters in the area.
In 2010, it had 39,660 employees. In Israel, the number of workers rose 7.5% by 6,774. In March 2010, Teva acquired German-based company Ratiopharm in a nearly $5 billion deal, significantly expanding its European coverage. In October 2010, Teva entered a license agreement with BioTime to develop and market BioTime's OpRegen for the treatment of age-related macular degeneration, an effort that in 2013 received $1.5 billion in funding from Israel's Office of the Chief Scientist. In May 2011 Teva announced it will purchase Cephalon for US$6.8 billion as part of its effort to expand its presence in the proprietary pharmaceuticals sector.
Within Teva operates Teva Active Pharmaceutical Ingredients (TAPI) as a stand-alone business unit. On top of supplying a major share of Teva's own needs, the TAPI division is an active competitor in world markets. In 2009, TAPI's sales to third parties totaled $565 million, and in 2010 sales rose by 13% to a total of $641 million.
Research & Development
Teva holds a patent on multiple drugs including: Copaxone (for the treatment of multiple sclerosis), now the world's best selling MS drug, and Azilect (sold as Agilect in some countries) for treatment of Parkinson's disease.
In June 2006, Teva received from the FDA a 180-day exclusivity period to sell simvastatin (Zocor) in the U.S. as a generic drug in all strengths except 80 mg. Teva presently competes with the maker of brand-name Zocor, Merck & Co.; Ranbaxy Laboratories, which has 180-day exclusivity for the 80 mg strength; and Dr. Reddy's Laboratories, whose authorized generic version (licensed by Merck) is exempt from exclusivity.
In June 2010, the company announced it would discontinue its production of propofol, a major sedative estimated to be used in 75% of all US anesthetic procedures.
In March 2015 Teva sold four anti-cancer compounds to Ignyta Inc. for $41.6 million.
- Eli Hurvitz was the CEO of Teva from 1976 to 2002, and chairman of the board until his death in 2011.
- Israel Makov was the CEO of Teva from 2002 to 2007.
- Shlomo Yanai was the CEO of Teva from March 2007 to May 2012, having announced his resignation at the beginning of 2012.
- Jeremy Levin was the CEO from May 2012 to October 30, 2013, when he announced his resignation.
- In January 2014, Erez Vigodman, replaced Eyal Desheh as the CEO of Teva, with the latter returning to his role as chief financial officer. Vigodman served as the CEO of Makhteshim Agan until joining Teva, and was President and CEO of Strauss Group prior to this.
- As of 2014, Michael Hayden was Teva's chief scientific officer and president of the company's global research and development
Mergers & Acquisitions
- Teva acquired Plantex in 1980.
- Teva acquired Novopharm (Canada) in 2000.
- In January 2006, Teva announced completion of its acquisition of IVAX Corporation. The acquisition price was US $7.4 billion.
- On December 23, 2008, Teva acquired Barr Pharmaceuticals for US$7.5 billion, making Barr and Pliva (which Barr bought earlier) part of Teva.
- On March 18, 2010, Teva announced that it planned to acquire German generic Ratiopharm for US$5 billion. The deal was completed in August 2010.
- In May 2011, Teva bought Cephalon for US$6.8 billion.
- In May 2011, Teva announced the ¥40 billion purchase of a majority stake in the Japanese generic drug company Taiyo Pharmaceutical Industry, a move to secure a Japan-local production facility. Teva completed the $934 million acquisition in July 2011.
- In June 2013 Teva acquired US firm MicroDose for $40 million with as much as $125 million being paid in regulatory and developmental milestones
- In January 2014, Teva acquired NuPathe after outbidding Endo for $144 million.
- In June 2014, Teva acquired Labrys Biologics for up to US$825 million, the aim being to strengthen the company's migraine pipeline through addition of LBR-101, an anti-CGRP monoclonal antibody therapeutic.
- In March 2015, Teva acquired Auspex Pharmaceuticals for US$3.5 billion growing their CNS portfolio.
- In April 2015, Teva offered to acquire Mylan for US$40 billion, only a fortnight after Mylan offered to acquire Perrigo for $29 billion. Teva's offer for Mylan was contingent on Mylan abandoning its acquisition of Perrigo. Mylan stated in June 2015 that Teva’s disclosure that it had a 1.35 percent stake in Mylan violated US anti-trust rules. Teva dropped this bid in July 2015, instead choosing to purchase Allergan PLC's generic drug business for $40.5 billion. This is the largest corporate transaction in Israel's history.