Teva faces troubles replacing Chief Executive after $6bn loss

Teva faces troubles replacing Chief Executive after $6bn loss

Executive Grapevine
Executive Grapevine | Executive Grapevine International Ltd

Teva are facing trouble replacing their Chief Executive, after their share price dropped 18% on Thursday after reporting a $6billion (£4.6billion) loss, reducing its dividend and saying that they would not rush its CEO search.

In the six months since the Israeli pharmaceutical firm parted with its former Chief Executive, two industry leaders have turned down the job, including Jacqualyn Fouse, former Chief Operating Officer at Celgene and AstraZeneca’s Pascal Soriot – The Financial Times reports.

Sol Barer, Chairman of Teva, said: “We will not compromise on quality and on finding the best individual possible.” He refused to put a timescale on the search but said finding a new Chief Executive had become his “primary sort of personal objective” and that he was determined to appoint someone with “very senior-level” experience at a global pharmaceutical company.

He added: “I live, eat and sleep this, and while it is always great to do this in a rapid time, six months is not a long time to look for a CEO. We’re very pleased in terms [of]…the candidates we are meeting with.”

The world’s largest maker of copycat drugs was faced with a $6.1billion impairment charge on its US generics business, and warned that it may have to enter negotiations with lenders over its $35billion of debts.

Ronny Gal, analyst at Bernstein, described the position of Teva Chief Executive as an “extremely difficult job”, adding: “You’re taking a company in financial crisis with a lot of debt, which is no fun, and you’re going to have to cut costs dramatically, which no one likes to do.”

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