‘Nobody Thought It Would Come to This’: Drug Maker Teva Faces a Crisis

Management missteps and tectonic shifts in the pharmaceutical business have battered Teva, which faces declining prices for generic drugs and the loss of a patent on a major branded drug, the New York Times reported. More than $20 billion has been shorn from the company’s market capitalization since 2017 began, cutting Teva’s value roughly in half. Everyone in Israel knew that layoffs and plant closings were coming, but what was expected was something akin to painful trims. Instead, on Dec. 14, Teva announced what amounted to an amputation. Roughly 14,000 jobs will be slashed, about one-fourth of the company’s worldwide work force, with 1,700 of those jobs based in Israel. Manufacturing plants will close, and parts of the company will be sold. Bonuses were canceled, and the stock’s dividend was suspended. Read more.