Teva to cancel or sell off 14 pipeline projects
Will redirect US$550m in funds from these projects to core areas of CNS and respiratory
Teva Pharmaceutical Industries is to discontinue or sell off 14 pipeline projects following a review of its operations.
These projects will amount to more than US$150m in R&D costs in 2015 and in excess of $200m in both 2016 and 2017.
The Israeli pharmaceutical company says this money will be redirected to increasing resources in its core therapeutic areas of Central Nervous System (CNS) and respiratory and to supporting its 'efficiency objective'.
Teva's President and CEO Erez Vigodman said the aim was to progress its efforts 'to solidify the foundation of the company, drive organic growth and ensure that we are pursuing the highest potential opportunities'.
'It will allow us to more efficiently and effectively focus and build leadership in key disease areas and deliver sustainable long-term value,' he added.
No further details have been given about any possible impact on staffing levels, but more will be revealed at the company's third-quarter earnings presentation, Vigodman said.
Teva has been establishing a leading position in CNS (including multiple sclerosis, neurodegenerative diseases and pain) and respiratory (including asthma and chronic obstructive pulmonary disease).
'Teva is committed to being a world-leader in CNS and respiratory, both areas underpinned by significant and growing unmet patient needs. With our existing portfolio, integrated global R&D and innovation capabilities, we are in a strong position to deliver for patients and payers, and to generate long-term value for our shareholders,' added Vigodman.
'Our late-stage pipeline assets are expected to generate great value – out of the 30 plus product launches we anticipate by 2019, with a total of more than $4bn in new revenue on a risk-adjusted basis, over 20 products will be launched in these two core therapeutic areas.'
In other therapeutic areas, such as women’s health and oncology, the company will focus on 'market-ready or close-to-market assets to maximise sustainable profitability'.
In addition, Teva will continue to evaluate opportunities for 'commercially-oriented activities and collaborations'.