Teva Pharmaceutical Industries Ltd. (

TEVA

)

30th Annual J.P. Morgan Healthcare Conference

January 10, 2012 12:30 PM ET

Executives

Eyal Desheh - CFO

William S. Marth - President & Chief Executive Officer Americas

Analysts

Chris Schott – JP Morgan

Presentation

[Q&A session only]

Chris Schott – JP

Morgan

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Great. Good morning, everybody. I’m Chris Schott, Pharmaceutical Analyst at JP Morgan. I’m very pleased to be introducing Teva this morning. From Teva we’ve Eyal Desheh, the company’s CFO, as well as Bill Marth, who is President and CEO of Teva Americas.

We are going to do a format today, it’s going to be more kind of a Q&A type of format. But I was going to have Eyal make some quick opening remarks and I will go to kind of some interactive questions from there.

Eyal Desheh

Well, thank you very much. Good morning, everyone. We’re always happy to be here at JPMorgan, in San Francisco, and we appreciate the crowd. Thank you for coming to listen to us. Without too much of introduction, first of all, we have our Chairman of the Board, Dr. Phil Frost, here with the audience. We’re thrilled. Here you go. And we will be happy to take your questions.

This is a new era for Teva. I’m sure that everybody is aware of that. The company is changing fast and we believe that definitely into very right direction. There is a huge platform of generic branded and over-the-counter drugs was with a very large global footprint and I believe that we’re operating behind a very solid strategy to lead Teva to further and additional growth in the next few years to come.

So with that, Chris, shoot your questions.

Chris Schott - JP Morgan

Sure. Well, maybe just to kick off on that topic, I mean, if you can just maybe discuss that the Company has obviously gone through quite a transformation these last few years becoming much more of a global entity, much more of a kind of balanced brand generic Company between Ratiopharm and Cephalon. Can you just talk about some of the challenges of managing this much broader portfolio to basically ensure we continue to see this high level of execution we’ve been kind of used to seeing from Teva historically and what you’ve kind of – what structural changes you kind of – you feel like you need to – you’ve made and still need to make to continue to execute on this kind of a more global strategy?

Eyal Desheh

You know maybe I will give a few data points. Then I will allow Bill to give some more details of that question. I think it’s a key question. First of all, when you look at Teva today, with a plan for about $22 billion in 2012, 55% of that is generics, 37% of that is branded. So the sizes of these two big pieces are pretty, pretty close. And then there is about 5% of OTC which is growing faster than the rest of the business and the rest – all the other, most of the distribution.

Now when we look at geographical spread, 25% of our business is U.S generic business. This 25% used to be much bigger. Teva today is a very, very well diversified company. Our generic business in Europe is almost equal in size to our generic business in the U.S. We have more branded products sold in the U.S following the Cephalon acquisition than generic product. With over $8 billion of branded products for 2012, this is a very, very large and solid piece of the business. So Teva is changing. It’s changing rapidly and is going to according to its strategic roadmap regarding execution and managing in a complex environment. Bill, maybe you can have …?

William S. Marth

Yeah. I think Eyal, you actually described it quite well. You know Teva is pursuing a strategy now that it’s relatively simple. Our mission is to bring medicine to patients around the world, no matter what means that is. I think that many people have continue to think of us as a U.S generic company and we’re a globally diverse company that really is the world’s leading generic company with $12 billion of generic revenues and a very large specialty pharma company at $8 billion with that mission to bring medications to patients around the world.

The challenges that sometimes exist – bringing those two poles together are really executional on the generic side. It’s a very executional business. And we’re excited about this business because it is a very local business. People often wonder why just Teva has a – have a particular expertise in generics around the world. Why can’t we do it any better than any large pharma company, and that’s an excellent question.

And I think that answer lies in our view that generics are a very local business. Now there are some major hubs when one thinks about Western Europe and when one thinks about the Americas, certainly large hubs. But when you think of Chile, when you think of Peru, when you think of Poland, when you think of Russia, these are very local markets and we have a – we’ve managing them in a very local manner. And that, Chris, at times is a challenge, but we think it is worth a challenge and we do a great job there.

At the same time we’re developing our world class specialty pharma company and that of course largely is in the U.S and our challenge now is to bring that, that specialty pharma company more globally. As we take back COPAXONE in Europe and as we grow around the world, we now need to have the capability to do brands globally. So those are many of the challenges, Chris.

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