Israel-based drugmaker Teva saw its shares climb on Monday after the company said it would be unveiling a detailed restructuring plan in December.
It was last week that Israeli financial news website Calcalist reported that Teva would be laying off “tens of percent” of its workers in the U.S. and as much as 25% of its workers across the globe.
At the time, Israel’s Economy Minister Eli Cohen had said that the job cut numbers were “not accurate” but he didn’t dispute the fact that Teva would be laying off workers.
According to Cantor Fitzgerald & Co. analyst Louise Chen, the announcement from Teva about unleashing a restructuring plan is “good news…and the first step in additional cost cuts to come.”
Teva’s former generic research and development and specialty R&D groups are going to be made into one single global group. There will no longer be two separate groups for Teva’s generics and specialty medicines either in its commercial business.
Recently appointed CEO of Teva, Kare Schultz remarked that the new restructuring plan “will enable stronger alignment and integration between R&D, operations and the commercial regions, allowing us to become a more agile, lean and profitable company.”
Disclaimer: We have no position in Teva Pharmaceutical Industries Ltd (ADR) ADR (NYSE: TEVA) and have not been compensated for this article.