After a ‘few years’ of searching, Teva Pharmaceutical Industries has secured a location for its new headquarters in Israel – in Ramat Hayal, Tel Aviv. Teva expects to relocate within the next two years.
The leased site will consolidate the firm’s current office network in Petah Tikva to “help to move Teva forward” on its path to financial security; the generics giant reported a debt of $28.4bn (€24.9bn) on September 30 of this year.
“Combining into one site will fulfil our goal of working as One Teva, and will be an efficient and cost effective solution, generating significant savings from a business and operations point of view,” we were told.
The announcement follows Teva’s restructuring plan, announced in 2017, and a number of cost-cutting measures designed to reduce the firm’s deficit.
Since August 2017, Teva has closed 15 sites, including an active pharmaceutical ingredient facility in Netanya, Israel; announced plans to reduce its workforce by 14,000 and scale down its network; reduced its manufacturing responsibilities in Israel; and accepted a $40m offer in tax saving incentives to move its US headquarters from Pennsylvania to New Jersey.
Teva says it is on track to achieve a reduction of $3bn by the end of 2019.