-: We've developed a new strategy for Teva going forward.
Is it bold? I believe it is.
But it's thoughtful, it's decisive,
and I think it's very clear.
(bright music)
-: Today, I am very excited to welcome Richard Francis,
CEO of Teva.
We will talk about the bold moves the company has been doing
to advance the industry.
Welcome, Richard. -: Thank you.
-: Richard, you became president and CEO of Teva
earlier this year.
Within three months,
you developed a strategy for the company.
Tell us more about it.
-: We've developed a new strategy for Teva going forward,
a pivot to growth strategy.
And is it bold? I believe it is.
But it's thoughtful,
it's decisive, and I think it's very clear.
And it really relies on four key initiatives.
One is to deliver on our growth engines.
The second one is to step up to innovation.
The third one is to create a generics powerhouse.
And the fourth one is to create a focused business.
The first one is deliver on our growth drivers.
This is all about maximizing
some of the innovative medicines
we've recently brought to the market.
And those are predominantly our innovative medicines
that we currently have.
So instead for tardive dyskinesia in Huntington's disease,
AJOVY for migraine,
and UZEDY a long-acted treatment for schizophrenia.
Those offer potential to drive growth
in the short, medium, and long term,
both top and bottom lines.
The next initiative is step up innovation.
And this is all about something I've discovered
when I came in.
I knew Teva had a history in research,
particularly in neuroscience and immunology or antibodies,
but I didn't realize how good they were.
These are products which have either a validated target
or an accepted mechanism of action.
So in my mind, I consider them to be less,
more de-risk than you'd normally expect in a pipeline,
so that's exciting.
And they're all in areas where we have capabilities.
So we need to step up innovation, keep driving that,
keep driving our pipeline through.
The third one is to turn our generics business
into a powerhouse.
What we're doing going forward to create this powerhouse
is to narrow that down to make sure we're focused on
the real value drivers that will allow us
to simplify our model, our go-to-market model,
but particularly our manufacturing and supply chain
which will thus improve that capability
which also helps us in the market.
And our aim is to make sure we deliver these products
both through the pipeline on time, more often.
And in the market where we have our portfolio,
we delivered at higher service levels
and a lower cost of goods.
And then the final pillar
is how to create focus within our business.
And to do that, it's about understanding
where we want to allocate capital,
where we want to place our resources
and our managerial time.
And what we've clearly outlined is,
there are some parts of our business,
the generics powerhouse, so maybe our specialty business,
our legacy business, which will be growth enablers,
which will be able to throw off
a significant amount of revenue and cash
to invest in our innovative business.
So everybody has a part to play in this strategy
and it's on each part of our business
understanding what their role is.
And I think that's really the key behind our strategy,
the clarity it gives the company.
-: Coming back to the move into innovative new drugs,
moving into innovative new drugs is a bold move for Teva.
What do you think will be the impact
on the health care industry as a whole?
-: People will start to recognize Teva
as not just a global leader in generics.
So as a competitor within innovation,
but in the therapy areas we're focused on
which is neuroscience and immunology,
I think we'll start to forge a path
where we'll become...
There's some major players in those areas.
And neuroscience, you could say we already are,
with our products in schizophrenia and migraine,
but I think in the immunology, that's an emerging field
for other pharma companies in biotech.
And I'd like to think we can position ourselves
as one of the leaders there.
-: Richard, thank you so much.
-: It's been a pleasure to talk to you.