NEW YORK (TheStreet) -- Teva Pharmaceuticals' (TEVA) CEO and President Dr. Jeremy Levin stepped down amid rumors of executive infighting. Executive VP and CFO Eyal Desheh will temporarily assume the positions until a successor has been found.
"My colleagues in Teva's management and I will continue to drive execution and results in full collaboration with our Board of Directors, for the benefit of our patients, shareholders, customers and employees," said Desheh in a statement.
Levin's exit comes after reports of rifts in the Israel-based company's management team. Reports on Israeli television station Channel 2 earlier in the week purported there were significant disagreements between Levin and Chairman Phillip Frost over the company's direction, particularly in how the board wielded influence over day-to-day management.
The news comes a day before the pharmaceutical company is expected to release third-quarter earnings.
Earlier in the month, Teva announced it would implement worldwide job cuts affecting 10%, or 5,000, of its employees. The cost-cutting program will realize $2 billion in annual cost savings by the end of 2017.
Teva shares plummeted 7.8% to $37.85 in pre-market trading.
TheStreet Ratings team rates TEVA PHARMACEUTICALS as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEVA PHARMACEUTICALS (TEVA) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."