Teva Names Kare Schultz as New Chief Executive -- Update

By Ian Walker 

Teva Pharmaceutical Industries Ltd. on Monday named Kare Schultz as its new chief executive, ending months of speculation over who will lead the Israeli drug company.

Mr. Schultz, a health care veteran with about 30 years experience in the industry, joins from Denmark's H. Lundbeck A/S, where he was president and CEO. He has also worked a chief operating officer of Novo Nordisk A/S.

Teva, the world's biggest seller of generic drugs, has been searching for a new permanent chief executive since February, when former boss Erez Vigodman departed the company for undisclosed reasons. Yitzhak Peterburg has stood in as interim CEO since then.

The appointment of Mr. Schultz, a 56-year-old Dane, comes at a crucial time for the company.

Like other generic-drug makers, it faces a tough pricing environment and intensifying competition for copycat medicines that is squeezing the industry's margins. It is also struggling under the weight of an acquisition streak.

In August, Teva lost about a quarter of its market value in one day on mounting concerns about the future of the company as it cut its full-year outlook and slashed its dividend, blaming the rapid deterioration of the U.S. generic-drug business.

At H. Lundbeck, Teva said Mr. Schultz was credited with leading restructuring initiatives and launching a turnaround that has put the company on track to report record revenue and earnings. He has also previously worked as a consultant at McKinsey.

Mr. Schultz will relocate to Israel and be based out of Teva's Petah Tikva headquarters, the drugmaker said. It didn't give a date for when he will join.

AstraZeneca's CEO Pascal Soriot was previously linked with the top job at Teva.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

September 11, 2017 03:48 ET (07:48 GMT)

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