Teva Names Kare Schultz as New Chief Executive -- 2nd Update
September 11 2017 - 06:46AM
Dow Jones News
By Rory Jones
Teva Pharmaceutical Industries Ltd., the world's biggest seller
of generics medicines, named Kare Schultz as its new chief
executive, choosing an industry veteran to navigate a series of
daunting challenges, from falling drug prices to the company's high
debt.
The appointment of Mr. Schultz, a Dane, ends a months-long
period during which Teva had no permanent top executive. It
recently shuffled its board and is shedding assets, while coping
with new competitors. Teva shares have been under pressure for
months.
The new chief executive joins from Denmark's H. Lundbeck A/S,
where he was president and CEO since May 2015. He has also worked
as chief operating officer of Novo Nordisk A/S, the world's biggest
producer of insulin.
Teva Chairman Sol Barer said the new chief executive has
everything that the firm was looking for in a new leader: Global
pharmaceutical experience, a restructuring background and knowledge
of generic and speciality medicines.
The new chief also understands the "cultural framework" of
working for a big pharma firm that like Novo Nordisk is also
considered a national champion, Mr. Barer said in an interview with
The Wall Street Journal.
"This is a critical time in Teva's history. We had to make sure
we got the right person," he said.
Mr. Schultz, 56, joins an executive board at Teva that in recent
years has fought over whether the firm should focus on generics
drugs or invest in speciality medicines, as competition has
increased for its main blockbuster drug.
The new chief executive would review the firm's operations
before articulating a new strategy as soon as possible, Mr. Barer
said.
Teva has been searching for a new, permanent CEO since February,
when former boss Erez Vigodman departed the company for undisclosed
reasons. Yitzhak Peterburg has stood in as interim CEO since
then.
There has been plenty of speculation about who might take the
reins at Teva, with AstraZeneca PLC CEO Pascal Soriot cited at one
stage as a contender by local media.
Teva's share price rallied on news of Mr. Schultz's appointment,
rising roughly 8% in early trading Monday in Tel Aviv. AstraZeneca
shares rose 2%.
In August, Teva lost about a quarter of its market value in one
day on mounting concerns about the future of the company after it
cut its full-year outlook and slashed its dividend, blaming the
rapid deterioration of the U.S. generic-drug business.
At H. Lundbeck, Teva said Mr. Schultz was credited with leading
restructuring initiatives and launching a turnaround that has put
the company on track to report record revenue and earnings. He has
also worked as a consultant at McKinsey.
Mr. Schultz will relocate to Israel and be based out of Teva's
Petah Tikva headquarters, Teva said. It didn't give a date for when
he will join.
--Ian Walker contributed to this artlcle
Write to Rory Jones at rory.jones@wsj.com
(END) Dow Jones Newswires
September 11, 2017 06:31 ET (10:31 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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