Citing a report from financial news website TheMarker, Reuters said Teva Pharmaceutical Industries will be naming Erez Vigodman as its new Chief Executive Officer this month. Teva Pharma is the biggest generic drugmaker in the world.
Information provided by anonymous sources to TheMarker said Teva would be making the announcement in San Francisco on January 13 at the JPMorgan Healthcare Conference. It did not, however, give other details about the appointment while a spokesman from Teva told Reuters that it does not make comments on rumors.
Reuters reported that Vigodman is a former director of the pharmaceutical firm and has been a frontrunner for the post since Jeremy Levin left in October. Levin stepped down after differences with the board on how to execute the company's new strategy.
Vigodman was credited with turning the generic crop protection firm MA Industries when he served as its Chief Executive Officer. In 2011, his controlling share was finally sold to China National Chemical Corp. Vigodman also served as the CEO of Israel-based food and beverage firm Strauss Group. Reuters said in its report that Vigodman's strength is in streamlining firms.
Last year, Teva undertook a restructuring plan which laid off about 10% of its workforce or a total of 5,000 workers as readied itself for lower-priced competition for Copaxone, its best-selling drug for multiple sclerosis. The report said copycat versions of Copaxone might be available as early as May.
Liav Abraham, an analyst at Citi, thinks that Vigodman is a good choice for the post, but expects the new CEO to be named next month when Teva gives its fourth quarter financial results.
The report quoted Abraham's client note, which read, "Although investors may express some scepticism if Mr. Vigodman is selected due to his lack of experience in the pharma industry, we note his successful record in the execution of turnaround strategies at large publicly traded companies, which is relevant for Teva as the company faces the loss of exclusivity of Copaxone and implementation of an extensive $2 billion cost reduction programme."
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