As the CEO of Teva, which markets would you

concentrate on developing going forward?

Introduction
Decisions case
Decision options: focus on US market and the
other generic markets, expanding into the
global branded markets, or gradually turning
into specialized generics or innovative
pharmaceuticals
Criteria: value creation, utilizing companys
strengths, aligned with their core values
Teva's Core Values and
Strengths
A focused firm, not a conglomerate
Global company
Cost leadership advantage
Large market shares
Close relation to academic institutions
Taking risks but not ones that risk the entire
company
Experienced at pharmacy driven markets
Market segments
Geographical: US, Western/Eastern Europe,
Japan, Latin America, Asia
Physician driven vs. pharmacy driven
Product type: commodity generic, niche
generic, biosimilars or innovative
The Way Forward
1. Keeping up the generics market in
US and Europe (40%)
Accounts for the core of sales.
Pharmacy driven markets experience
Very good at filing ANDA in the USA.
Paragraph IV and exclusivity period provides
higher margins.
Debt crisis in Europe has governments looking
for places to cut costs (e.g. generics)
Similarly, in US people are looking to cut costs.
2. Introducing Biosimilars and Niche markets
to Latin America and Eastern Europe (40%)

Already has a specialty division that expects high

growth rates (Ivax)
Less competitive than generics, higher entry barriers,
higher gross margins, closer to innovative.
US market regulatory barriers
Price erosion within generics market in the US
Competitors in Europe expanding aggressively,
important to get in the market before its too late
Linkage between US and Latin America
Reasonable risk within the companys core values
3. Pursuing the innovative
market (20%)
Impressive success with Copaxone (blockbuster drug
accounts for 12% sales) and Azilect
Collaborating with Israeli academic institutions in R&D -
cost advantage.
Partnering for sales & marketing - cost advantage
(Sanofi-Aventis).
Massive competition in generics including low cost
players like Ranbaxy (India)
Innovative drug companies entering the generic market
and defending their patents aggressively - strategic
decision.
Breakdown of strategic plan
Keeping up the generics market share in US
and Europe (40%)
Introducing Biosimilars and niche markets to
Latin America and Eastern Europe (40%)
Continue penetrating the innovative market
(20%)
How will the company logistically
handle this structure?
Maintain global company.
Integrate acquired companies.
Create separate divisions for innovative and
commodity generics, as it did with Ivax for
biosimilars.
Closing Statements
Healthcare industry is changing and Teva
needs to adapt in order to grow.
Decision case based on criteria: core values,
strengths and value creation
Angles to consider: geography, market driver,
product type.
Thank you