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Teva Moves On From Restructuring To Improving Margins

As Israeli Firm Sees Mixed Impact From COVID-19 Pandemic

 
• By Dave Wallace

Teva has expanded on plans to improve its profit margins after emerging from a years-long restructuring program that has cut its cost base by over $3bn. The Israeli company reported first-quarter sales ahead by 5% to $4.36bn, seeing a “mixed bag” effect from the COVID-19 pandemic as well as positive results from new launches including two US biosimilars.

Margin
Teva is keeping a close eye on its profit margins • Source: Shutterstock

Teva has set out more details of how it plans to improve its profit margins in the wake of an extensive restructuring of the business, as the firm has reported a mixed impact from the COVID-19 pandemic in the first quarter of 2020.

Having at the end of 2019 celebrated the completion of a long-term restructuring plan – with measures that included cutting staff and shedding production plants resulting in a cost base reduction of more than $3bn – president and CEO Kåre Schultz had previously indicated that the next phase of Teva’s strategy would involve optimizing the remaining manufacturing operations and reducing costs while at the same time driving top-line sales growth

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