Teva’s CFO resigns in the midst of ongoing financial woes

Aug. 7, 2019

Teva Pharmaceuticals announced this week that its chief financial officer is stepping down.

According to the company, Michael McClellan is leaving his CFO post for personal reasons. Teva plans to scout outside of the company for a replacement.

The news comes as Teva continues to grapple with the financial fallout of ongoing opioid lawsuits in the U.S. The company paid out $646 million in Q2 as part of a wider $85 million settlement with the state of Oklahoma. Teva admitted no wrongdoing but said that it made the settlement for “tactical reasons.”

Teva has also been hit by downward pricing pressure in the U.S. generics market.

But, its profits fell less than expected in Q2, and the company is banking on two recent drug launches — Ajovy, a migraine treatment and Austedo, a Huntington’s disease drug — to help buoy revenue going forward. Teva’s CEO also reported that the company’s restructuring plan, which included spending cuts and layoffs, has helped reduce its debt load to $28.7 billion.

Read the full Reuters report.