Year Established: 1901
Revenues: $18,854 (-16%)
Loss: $2,472 (NM)
R&D: $1,213 (-32%)
TOP SELLING DRUGS
|Bendeka||Leukaemia, chronic lymphocytic Non-Hodgkin lymphoma||$642||-2%|
|Attention deficit disorder/hyperactivity (ADD/ADHD)||$481||-29%|
|Austedo||Huntington’s disease, Tardive dyskinesia||$204||750%|
|Daptomycin||Skin infections, Endocarditis||$167||45%|
|Sildenafil Citrate||Erectile dysfunction||$122||205%|
Teva’s revenues in 2018 were $18.8 billion, a decrease of 16% compared to 2017, mainly due to generic competition to multiple sclerosis drug Copaxone, a decline in revenues in the U.S. generics business and loss of revenues following the divestment of products and discontinuation of activities, all of which are part of a global restructuring effort announced by the Israeli generics giant at the end of 2017. In terms of sales, the beginning of 2019 didn’t show signs of hope. Revenues of $4.3 billion in the first quarter of 2019 continued the downward trend, marking a decrease of 15%.
At the time its plans were unveiled, Teva said it would undergo a major overhaul of its operations, restructuring in an effort to significantly reduce costs and simplify its organization, as it faced $35 billion of acquisition-related debt stemming from the $40.5 billion purchase of Allergan in 2016. The plan called for cutting $3 billion in costs by the end of 2019, including the elimination of 14,000 positions globally, more than 25% of Teva’s total workforce. The majority of cuts occurred in 2018, but have carried over into this year as well.
Teva said it plans to pump up its generics portfolio globally, specifically in the U.S., through price adjustments and/or product discontinuation. It also continues to accelerate the restructuring of its manufacturing and supply network, including the closures or divestments of a significant number of manufacturing plants in the U.S., Europe, Israel and growth markets.
Teva said it will also close or divest a significant number of R&D facilities, headquarters and other office locations across all geographies. The company will also review all R&D programs in generics and specialty, to prioritize core projects and terminate other, non-core assets.
In one instance, Teva and Procter & Gamble agreed to terminate the PGT Healthcare partnership that the two companies established in 2011 to market OTC medicines. PGT Healthcare had grown into a significant presence in over 50 countries, mainly in Europe and Asia, using market-leading brands such as Vick’s and ratiopharm. However after nearly seven years working together, the companies concluded that their priorities and strategies were no longer closely aligned. Each company took back its own brand and product assets to re-establish independent OTC businesses.
As part of the global restructuring process, during the year Teva unveiled plans to consolidate its North America Commercial business into New Jersey. Teva will establish its North America headquarters in Parsippany-Troy Hills, including more than 1,000 jobs and the transfer and creation of more than 800 positions. Teva accepted an offer of a 10-year and $40 million in tax savings incentives from the NJ Economic Development Authority to move forward with the plan. The moved marked yet another step forward and in-line with Teva’s global restructuring effort to drive savings, restore financial security and stabilize its business by reducing the number of sites it operates to unify and simplify the organization, as well as improve productivity and efficiencies.
In 2018, Teva and Insilico Biotechnology entered an agreement to apply Insilico’s technology for predictive biomanufacturing to create and implement more efficient production processes of Teva’s biopharmaceutical therapeutics. Insilico’s solutions for predictive biomanufacturing are one of the key technologies to convert this value into higher quality therapies and to bring them faster to market. Insilico’s Digital Twins of biopharmaceutical production processes employ metabolic models of producer organisms in combination with flexible process models and artificial intelligence to create optimized production processes by computational simulations. The collaboration will run for three years and will be based at Insilico’s sites in Stuttgart, Germany and at Teva’s West Chester, PA, location.
In another deal to bolster its biomanufacturing operations, Teva teamed up with Genedata, a provider of bioinformatics enterprise software, to use its workflow platform to streamline the identification, engineering, and characterization of novel biopharmaceuticals drugs. Teva will use Genedata Biologics as their backbone system across their antibody discovery operations. In addition, the platform will enable a thorough assessment of a drug candidate’s developability profile and facilitate handovers to the Teva development and manufacturing organization.
In September 2018, Teva received approval from the FDA for its AJOVY (fremanezumab-vfrm) injection for the preventive treatment of migraine in adults. AJOVY, a humanized monoclonal antibody that binds to calcitonin gene-related peptide (CGRP) ligand and blocksits binding to the receptor, is the first and only anti-CGRP treatment for the prevention of migraine.
Teva also received approval from the FDA at the end of the year for its ProAir Digihaler (albuterol sulfate 117 mcg) inhalation powder, the first and only digital inhaler with built-in sensors which connects to a companion mobile application and provides inhaler use information to people with asthma and COPD. ProAir Digihaler is indicated for the treatment or prevention of bronchospasm in patients aged four years and older with reversible obstructive airway disease, and for prevention of exercise-induced bronchospasm (EIB) in patients aged four years and older. The device contains built-in sensors that detect when the inhaler is used and measure inspiratory flow. This inhaler-use data is then sent to the companion mobile app using Bluetooth Wireless Technology so patients can review their data over time, and if desired, share it with their healthcare professionals.