by Christopher Freeburn | October 30, 2013 10:23 am
Shares of Teva Pharmaceutical Industries (TEVA) tumbled more than 6% in Wednesday morning trading after the company said its CEO had resigned.
In a statement, Teva announced that Jerry Levin had reached an agreement with its board to depart the drug maker. Levin, who took the company’s reins less than 18 months ago, had reportedly clashed with Teva Chairman Phillip Frost over a restructuring plan, Bloomberg noted.
During a conference call, Frost said that Levin and the board concurred on overall business strategy, but could not agree on the methods to implement it. “The differences were over nuances rather than disagreement about the strategy itself,” he elaborated.
Analysts said the management turmoil was a worrisome sign for the company.
News of his resignation came just days after the company publicly denied Israeli media reports that Levin was preparing to resign due to disagreements with the board about company strategy.
Teva is attempting to reorganize in the face of rising generic drug competition. It recently announced plans to cut 5,000 workers, including some in Israel, a move which has generated opposition from Israeli unions and lawmakers.
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