So much for the forceful response Teva promised when it claimed the former owners of Mexican generics buy Rimsa committed fraud.
Vigodman took over the helm of Teva in January of 2014, serving a scant three years at the top of the company. In its statement this morning, Teva said the separation was by mutual agreement between Vigodman and the board of directors. His tenure as CEO has seen several stumbles, which have caused several investors to call for a change in management, Fortune reported this morning. Vigodman oversaw a number of deals that have been called into question, including the acquisition of Actavis (ACT), the generic drug business of Allergan for $40.5 billion—a price that many analysts thought was too high. The company has also been embroiled in legal action with Mexican drugmaker Rimsa and in December paid out $519 million to settle parallel civil and criminal charges that it allegedly violated the Foreign Corrupt Practices Act when it paid bribes to foreign government officials in Russia, Ukraine, and Mexico between 2002 and 2012.
Teva Pharm`s CEO Vigodman steps down amid crisis of confidence
A U.S. District Court on Monday rejected four out of five of Israel-based Teva's claims of patent infringement on its top-selling multiple sclerosis treatment Copaxone, potentially opening the door for generic competition.
On Friday, the company laid out a revenue forecast of $23.8 billion to $24.5 billion for the year, well below the $25.2 billion to $26.2 billion range it previously outlined. The Israeli drugmaker now expects EPS to hit between $4.90 and $5.30, another big drop from its July guidance of $6.00 to $6.50.
Investors sent Teva shares south on news that Olafsson was turning the reins over to Dipankar Bhattacharjee, current CEO of Teva’s European generics business. And analysts, who were similarly blindsided by the announcement, weren’t at all bewildered by that reaction.
Teva Pharmaceutical Industries Ltd.'s (NYSE: TEVA; TASE: TEVA) share price was down 8.36% on Wall Street yesterday, following the publication of the company's third quarter results, putting the share 43% lower than at the beginning of the year and 48% below its mid-2015 peak. The company's market cap has now fallen to $34.7 billion, lower than the price Teva paid for the acquisition of Actavis, Allergen's generic division, in a deal signed a year ago and completed two months ago. Teva's current share price is $37.60, a three-year low and 15% below its price when Erez Vigodman was appointed company CEO in early 2014.
Teva ($TEVA) acknowledged today that Mexican authorities suspended manufacturing at the plant in October saying the action followed “discovery of the serious violations committed under the Espinosa brothers, Rimsa's former owners....We are working closely with the Mexican authorities in order to restore production and products to the market,” Teva went on to say.