Teva whacking 11 plants for sure, another 16 being evaluated
The top dogs at Teva Pharmaceutical Industries have been saying for more than a year that to help cut $2 billion in costs, its manufacturing network needed to be trimmed and its API business cinched up. Now, new CEO Erez Vigodman has put some numbers to the calculation: 11 plants are slated for closure and another 16 are still under evaluation.
Vigodman, in his call with analysts last week, did not say which plants or how many jobs would be lost but did say Teva ($TEVA) has already started in on the reduction, according to a transcript of the call from SeekingAlpha. He also said that the cost-cutting should result in $1 billion in annual savings at the end of this year and another $1 billion cast aside by 2017, with $500 million falling to the bottom line by the end of that year.
“There is a lot of value we can unlock from getting our house in order by delivering on our cost reduction program, by accelerating operational network transformation and integration and by strengthening our global generic leadership, while improving profitability,” Vigodman said.
Read more: Teva whacking 11 plants for sure, another 16 being evaluated – FiercePharma Manufacturing http://www.fiercepharmamanufacturing.com/story/teva-whacking-11-plants-sure-another-16-being-evaluated/2014-05-05#ixzz31XLG0wxj