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