Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Ltd.
טבע תעשיות פרמצבטיות בע"מ

Type	Public
Traded as	NYSE: TEVA TASE: TEVA
Industry	Pharmaceutical
Founded	1901 (1901)
Founder	Chaim Salomon Moshe Levin Yitschak Elstein
Headquarters	Petah Tikva, Israel
Key people	Erez Vigodman, President and Chief Executive Officer[1] Prof. Yitzhak Peterburg, Chairman Eyal Desheh, Chief Financial Officer
Products	Pharmaceuticals
Revenue	$20.3 billion USD (FY 2014)
Operating income	$3.951 billion USD (FY 2014)
Net income	$3.055 billion USD (FY 2014)
Number of employees	43,000 (2014)
Website	www.teva.co.il www.tevapharm.com

Teva Pharmaceutical Industries Ltd. (Hebrew: טבע תעשיות פרמצבטיות בע"מ‎‎) is an Israeli multinational pharmaceutical company headquartered in Petah Tikva, Israel.^[2] 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^[3] and one of the 15 largest pharmaceutical companies worldwide.^[4] Teva's facilities are located in Israel, North America, Europe, and South America. Teva is a member of both the New York Stock Exchange the Tel Aviv Stock Exchange, as well as a member of the Pharmaceutical Research and Manufacturers of America (PhRMA).^[5]

History

Worker at Assia plant in the 1930s

Teva plant, Har Hotzvim, Jerusalem

Teva in Markham, Ontario

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.^[6]

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.^[7] Teva entered the Japanese market in 2005, and in 2008 established a generics joint venture with Kowa.^[8]

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,^[9][10] 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.^[7]

In 2010, it had 39,660 employees. In Israel, the number of workers rose 7.5% by 6,774.^[11] In March 2010, Teva acquired German-based company Ratiopharm in a nearly $5 billion deal, significantly expanding its European coverage.^[12][13][14] 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,^[15] an effort that in 2013 received $1.5 billion in funding from Israel's Office of the Chief Scientist.^[16] 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.

Corporate governance

Mergers and acquisitions

1980 to 1999

In 1980, Teva acquired Plantex.^[26]

2000 to 2009

In 2000 Teva acquired Canadian based Novopharm.^[27] In January 2006, Teva announced completion of its acquisition of IVAX Corporation for approximately $7.4 billion.^[28] The acquisition price was $7.4 billion.^[29] On December 23, 2008, Teva acquired Barr Pharmaceuticals for $7.5 billion, making Barr and Pliva (which Barr bought earlier) part of Teva.^[30]

2010 onwards

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.^[7] In May 2011, Teva bought Cephalon for US$6.8 billion.^[31] The same month, 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.^[8] Teva completed the $934 million acquisition on July 2011.^[32] In June 2013 Teva acquired US firm MicroDose for $40 million with as much as $125 million being paid in regulatory and developmental milestones ^[33] In January 2014, Teva acquired NuPathe after outbidding Endo for $144 million.^[34] In June 2014, Teva acquired Labrys Biologics for up to $825 million,^[35] the aim being to strengthen the company's migraine pipeline through addition of LBR-101, an anti-CGRP monoclonal antibody therapeutic.^[25] In March 2015, Teva acquired Auspex Pharmaceuticals for $3.5 billion growing their CNS portfolio.^[36] In April, Teva offered to acquire Mylan for $40 billion,^[37] only a fortnight after Mylan offered to acquire Perrigo for $29 billion.^[38] Teva's offer for Mylan is contingent on Mylan abandoning its acquisition of Perrigo.^[39] Mylan stated in June 2015 that Teva’s disclosure that it had a 1.35 percent stake in Mylan violated US anti-trust rules.^[40] In October, the company acquired Mexico-based Representaciones e Investigaciones Medicas (Rimsa) for around $2.3 billion.^[41] In the same month Teva acquired Gecko Health Innovations.^[42] In November 2015, the company announced it would collaborate with Heptares Therapeutics with its work on small-molecule calcitonin gene-related peptide antagonists for migraine treatment, with the deal generating up to $410 million.^[43]

Actavis Generics

In July 2015, Allergan agreed to sell off its generic drug business (Actavis Generics^[44]) to Teva for $40.5 billion^[45][46][47] ($33.75 billion in cash and $6.75 billion worth of shares).^[48] As a result, Teva dropped its pursuit of Mylan. In order for the deal to clear regulatory hurdles, Teva sold off a number of assets - including a portfolio of five generic drugs to Sagent Pharmaceuticals in a deal worth $40 million, as well as a further eight medicines to Dr. Reddy’s in a $350 million deal.^[44] Teva also sold a further 15 marketed generics, as well as three others which are close to market, for $586 million to Impax Laboratories.^[49][50] In July, Teva sold off a further 42 products to the Australian generics company - Mayne Pharma for $652 million - the deal will cause Mayne to move up 50 spots into the top-25 companies in the US generic market.^[51] As part of the deal Teva will seek to raise $20 to $25 billion^[52] through a bond sale.^[53]

After completing the $39 billion acquisition of Actavis Generics the company announced another smaller deal with Allergan, agreeing to acquire its generic distribution business Anda for $500 million.^[54]

Acquisition history

The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):

Research and development

Copaxone, a Teva patented drug

Teva holds a patent on multiple drugs including: Copaxone, a specialty drug^[55] (for the treatment of multiple sclerosis), now the world's best selling MS drug,^[56] and Azilect (sold as Agilect in some countries) for treatment of Parkinson's disease. By July 2015 Copaxone held a "31.2 percent shares of total MS prescriptions in the United States."^[56] Teva's new 40 mg version of Copaxone taken three times a week "accounted for 68.5 percent of total Copaxone prescriptions in the United States."^[56] Copaxone accounts for about fifty percent of "Teva's profit and 20 percent of revenue."^[56] Competitors' Glatopa, 20 mg version of Copaxone, is taken once a day.^[56]

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.^[57]

In March 2015 Teva sold four anti-cancer compounds to Ignyta Inc. for $41.6 million. As part of the deal Teva sold the following compounds which were then renamed:^[58]

• CEP-32496 (renamed RXDX-105) a small molecule inhibitor of BRAF, EGFR and RET, now in Phase I/II trials
• CEP-40783 (renamed RXDX-106) a small molecule inhibitor of AXL and c-Met in preclinical development
• CEP-40125 (renamed RXDX-107) a nanoformulation of a modified bendamustine with potenital activity in solid tumours. Bendamustine Rapid Infusion as therapy for CLL and NHL is part of Teva's specialty drugs pipeline.^[55]
• TEV-44229 (renamed RXDX-108) a potent inhibitor of the kinase PKCiota

Legal issues

On June 25, 2010, Bayer sued Teva for falsely claiming that Gianvi, Teva's Generic of Yaz, was "stabilized by betadex as a clathrate."^[59] The lawsuit stems from Bayer's US patent, 5798338, on the binding and preservative agents that were not in fact present in Gianvi. "In the preparation of such low-dosed dosage forms, strong fluctuations of the active ingredient concentrations in the dosage units occur almost unavoidably (inadequate content uniformity), which manifest themselves more strongly, the smaller the amount of the active ingredient. It has now been found that the drawbacks that are observed especially in the preparation and storage of dosage forms which contain low-dosed steroidal sex hormones can be avoided, at least to a large extent, if dosage forms are prepared that contain powdery cyclodextrin clathrates of these active ingredients."^[60] The settlement of the lawsuit resulted in Teva changing its product marketing to remove the claim that it used the same ingredients as Yaz.^[61] Bayer's patent is on a method specifically designed to prevent oxidative degradation of the estrogen.

In January 2015, the Supreme Court of the United States decided on the Copaxone patent in Teva Pharmaceuticals USA, Inc. v. Sandoz, Inc..^[62]

Subsidiaries

Pharmaceutical products

See also

• Economy of Israel
• Science and technology in Israel
• Health care in Israel
• BioTime
• Teva Active Pharmaceutical Ingredients (TAPI)
• Qualitest

References

External links

Wikimedia Commons has media related to Teva Pharmaceutical Industries.

• Teva Pharmaceutical Industries Official website
• Pharmaceutical Executive (PDF)
• "Recent Product Launches, Teva Pharmaceuticals USA". Retrieved February 21, 2008. 
• The Economic Times

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