Teva Pharmaceutical Industries, Ltd

Teva Pharmaceutical Industries, Ltd

Cassandra GissalWendy KruegerNick MaglioSue MathisNicole Schumann

Agenda

Main IssuesBackgroundPharmaceutical FirmsGeneric Pharmaceutical Firms – USGeneric Pharmaceutical Firms – WorldCompetitorsAlternativesRecommendationsConclusionsQuestions

Main Issues

Teva Pharmaceutical Industries, Ltd’s sales are declining

Generic Pharmaceutical competitors are steadily growing

Low cost and Innovation

Teva Pharmaceutical Industries, Ltd Background

Teva was established in 1901 in JerusalemSince 1985 – Executed 14 mergers worth $12

billionWorlds largest leading producer of generic

pharmaceuticals2006 – Controlled 18% of the base U.S.

generics market by number of prescriptions

Pharmaceutical Firms

In 2006, the pharmaceutical industry totaled $600 billion worldwide

Growth depends on patent protection 12% growth over the last 5 years 20% return on equity

Valued on: Pipeline of new drugs in pre-approval stages Projected lifespan of drugs currently on the market

Annual industry growth was predicted to slow to 5%-8% annually

Generic Pharmaceuticals

Bioequivalent version of name brand counterparts

Priced lower than name brand drugsUS is the largest generics marketManufactured and sold if the original drugs

were not projected by patentsSubject to the same regulatory standardsGrowth was expected to grow 6% faster than

their name brand competitors

Generic Pharmaceuticals - World

Generic Competitors

Novartis –acquired 2 generic companies

Low-cost firms from India and Eastern Europe are growing

Generic drugs were released by innovative firms

Generic Products

Commodity generics Tablet or capsule form Most competitors are within this market

Niche generics Drugs whose active molecules are difficult to

systhezise Higher gross margins

Biosimilars Difficult to replicate drugs Multibillion dollar market

Alternatives

Recommendations

Conclusion

Questions?