Teva CEO Resigns Amid Bribery Investigation

Source: Reuters

Feb 07, 2017

Teva Pharmaceutical Industries’ now-former CEO, Erez Vigodman has stepped down, and is replaced by Chairman Yitzhak Peterburg on an interim basis. Reports state that while Teva works with a search firm to find a permanent replacement, director Sol Barer will serve as chairman. Investors are looking for Teva to find a CEO with much greater pharmaceutical experience.

The Teva shakeup comes after a series of costly missteps and controversies, including the state of California suing the drugmaker over obstructing generic competition and a recent ruling by a U.S. district court that invalidated four patents on Teva's multiple sclerosis therapy.

The latest news has spurred talks of big changes, including the possibility of splitting the company’s generics and branded units into separate entities.

Teva also released that it was being investigated in Israel over allegations that it bribed foreign officials to gain business. These are the same issues that previously led to a $519 million settlement last December.

Read the Reuters report