Teva Pharma (TEVA) Appoints New Global Generic Medicines Group CEO; FY16 Guidance Affirmed

(UPDATE: The company appointed a CEO of one of its subsidiaries, not the whole company.)

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) announced that Dipankar Bhattacharjee has been appointed President and Chief Executive Officer, Global Generic Medicines Group, effective today. Mr. Bhattacharjee, who has served as President and CEO of Teva Generics Europe since April 2013, succeeds Sigurdur (Siggi) Olafsson, who will step down from his role and remain active with the Company until officially retiring at the end of the first quarter of 2017 to ensure an orderly transition. Mr. Bhattacharjee will be based in the U.S.

As President and CEO of Teva Generics Europe, Mr. Bhattacharjee has a proven track record of improving revenues and profitability, significantly increasing operating profit margins in the European generics business. Under his leadership, Teva’s European business demonstrated consistent improvement in sales and profits, establishing Teva as one of the premier generics companies in Europe. He has focused on improving and enhancing the European generics operations, leading a full European integration of Actavis Generics and overseeing successful new product launches.

“Dipankar has been an integral part of Teva's management team since he joined the Company in 2009, and we are fortunate to have someone with his experience to lead our generics business at this important time,” said Erez Vigodman, Teva’s President and Chief Executive Officer. “Teva will benefit from Dipankar’s extensive experience in generics and specialty medicines, his financial and operational expertise and his deep understanding and appreciation for Teva’s culture of innovation and our outstanding people. As we continue to focus on integrating and realizing the value of the Actavis Generics transaction, which is progressing according to plan, Dipankar and his team will focus on generating organic growth through new launches and replenishing the pipeline through our industry-leading R&D, and drive efficiencies across the generics organization. I have been incredibly impressed by Dipankar’s work in Europe, and I am confident that his capabilities, proven track record and experience make him the right person for this global leadership role.”

“I am honored to lead the Global Generic Medicines Group, a business with a robust R&D pipeline, a talented team of employees, well-established relationships with business partners and customers and significant prospects for organic growth,” said Mr. Bhattacharjee. “With the integration of Actavis proceeding on schedule and the complementary U.S. distribution capabilities provided by our recent acquisition of Anda, we have a matchless opportunity to add value in the U.S. healthcare system, and in the fast-changing global generics marketplace. I look forward to working with the rest of the management team to strengthen our generics business and help position Teva to achieve its full potential.”

“I am proud of the incredible progress we have made since I joined Teva to lead the newly formed Global Generic Medicines Group,” said Mr. Olafsson. “I firmly believe that Teva is the best positioned generics company in the industry in terms of market presence, manufacturing capabilities and R&D pipeline. I am grateful for the support from the talented team at Teva and am fully committed to ensuring a smooth transition into 2017.”

Mr. Vigodman continued, “On behalf of the Board and management team, I would like to thank Siggi for all of his valuable contributions to Teva over the years. He has been instrumental to the Company’s growth, and we wish him the very best in the future.”

About Dipankar Bhattacharjee

Dipankar Bhattacharjee was appointed President and CEO, Generics Europe in April 2013. Mr. Bhattacharjee joined Teva as General Manager, Teva UK Limited in 2009. Prior to joining Teva, he served 15 years at Bausch + Lomb in various senior roles, including Vice President Commercial in both Europe and Asia-Pacific regions and Corporate Vice President and President, Asia Pacific Region. He began his career at Nestle S.A. and Bank of America. Mr. Bhattacharjee received his BA degree in economics from St. Stephens College, University of Delhi, and his Masters degree in Management Studies from Jamnalal Bajaj Institute of Management Studies, University of Mumbai.

Financial Outlook

In conjunction with today’s announcement, Teva is reaffirming its full-year 2016 outlook. Revenues for full year 2016 are expected to be $21.6-$21.9 billion and revenues for the fourth quarter of year 2016 are expected to be $6.2-$6.5 billion. Non-GAAP EPS for 2016 is expected to be $5.10-$5.20, based on a weighted average number of shares of 1,020 million; non-GAAP EPS is expected to be $1.34-$1.44, based on a weighted average number of shares of 1,077 million. Cash flow from operating activities for 2016 is expected to be $4.8-$5.0 billion; cash flow from operating activities for the fourth quarter of 2016 is expected to be $1.0-$1.2 billion.

Teva now expects to provide its 2017 guidance in January 2017.

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