Drugmaker Teva needs strategy reset with new CEO

Wed Jan 8, 2014 8:15am EST
 
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* Erez Vigodman leading candidate, source says

* Board divided on company's future

* Teva needs to branch out beyond generics, say analysts

By Tova Cohen and Ari Rabinovitch

TEL AVIV, Jan 8 (Reuters) - The new chief executive of Teva Pharmaceutical Industries will have to go beyond cost cutting and lay-offs to fend off cut-throat competition and nurse the drug company back to health.

Teva needs to find new sources of income to offset the impending patent expiry on its multiple sclerosis treatment Copaxone. The company is the world's biggest producer of generic drugs but relies heavily on Copaxone, its most profitable product by far.

The top candidate to lead the charge is Erez Vigodman, the CEO of generic crop protection product maker MA Industries, according to a source close to the matter.

"The announcement could come in a matter of days," the source told Reuters.

Generic drugmakers produce cut-price medicines developed by other companies. They have benefited in recent years from an increased uptake of their products by cost-conscious governments and health insurers.   Continued...