Teva Outsources Manufacturing in Anticipation of Israeli Plant Closure
The debt-laden drugmaker announced an aggressive reorganization plan in December, consisting of wide-spread asset divestments and layoffs, including in its home country of Israel
Golan Hazani : 2018-08-27T15:22:03..
Israel-headquartered Teva Pharmaceutical Industries Ltd. is moving ahead with its reorganization plan, announced December 2017, and outsourcing some of its in-house manufacturing to Israel-based Rekah Pharmaceutical Industry Ltd. Tel Aviv-listed Rekah announced the 10-year agreement with the debt-laden generic drugmaker in a filing to the Tel Aviv Stock Exchange Monday.
For daily updates, subscribe to our newsletter by clicking here.In December, after two years of diminishing revenues and plummeting shares, and with a multi-billion debt load, Teva's then newly appointed CEO Kåre Schultz announced an aggressive reorganization plan that includes wide-spread asset divestments and the layoffs of 25% of Teva's employees. The announcement caused widespread though short-lived protests in Israel.