Just after three years Erez Vigodman has stepped down, leaving uncertainty in the Pharma industry as the world’s largest generic-drug maker without a permanent leader.
The announce came just two months after the resignation of Sigurdur Olafsson, the former head of Teva’s main business unit: generic medicines. Vigodman’s sudden departure is unexpected but not entirely surprising.
Mr. Vigodman and Mr. Olafsson have driven a $40.5, billion dollars’ operation to acquire Actavis Generics last year. However, the acquisition didn’t have the desired effect and since then the company reduced its profit forecast twice, sending the stock to a 12-year low.
Elizabeth Krutoholow, an analyst with Bloomberg Intelligence has declared that 2017 will be a turning point year for Teva, adding: “It’s certainly not good news at this point in time. It doesn’t send a good signal about the future of the company, though a new CEO may be just what the company needs to turn things around. Vigodman hasn’t been the best dealmaker.”
Chairman Yitzhak Peterburg, who will hold the job on an interim basis, said said the company will be focused on cutting costs:
“The Company is focusing on executing its strategic priorities to transform Teva, with immediate focus on realizing the cost synergies and strategic benefits of the Actavis Generics acquisition. I look forward to working with the entire Teva team to conduct a thorough review of the business to find additional opportunities to enhance value for shareholders” adding “With the strength of our generics pipeline, unique R&D capabilities and unparalleled footprint, coupled with our existing assets and growing pipeline in specialty medicines, I believe in Teva and the Company’s long-term growth prospects.”