Teva CEO says manufacturing cuts will keep coming


2019-08-14 17:09:00 FiercePharma


The way Teva Pharmaceutical CEO Kåre Schultz figures it, manufacturing is the cost-cutting gift that just keeps on giving. After the Israeli drugmaker completes its declared $3 billion cost reduction effort, it can still look to manufacturing efficiencies to build its margin.  Schultz laid out the blueprint last week during a conference call in which the company reported a much larger quarterly net loss but told investors progress continues to be made. He said the company has cut $2.7 billion in operating expenses since it instituted its plan in 2018.  Schultz said the company expects to swell its margin to 27% from its current 23% through improvements in its product mix and making manufacturing more efficient. “Now, we are not going to do a big splash restructuring, but we will do ongoing optimization of our manufacturing footprint,” Schultz said, according to a transcript of the call from Seeking Alpha. “I said before and I'll repeat now, that once the restructuring program is fully executed, which will be at the end of this year, then we will share with you our longer term plans for how to optimize manufacturing going forward.”   The CEO said experience tells him the company can achieve incremental improvements over time, say, improvements of 50 basis points to 100 basis points a year. “It doesn't come linearly, because you do have some step changes when you change your manufacturing footprint or when you launch products in more markets and so on,” Schultz said. “And it's a long-term commitment, where you keep on doing this. It's thousands of different activities and changes you do, but it's a sustainable improvement methodology and I believe that we'll be able to do that going forward.” The drugmaker has made substantial business amputations since Schultz was hired in 2017 to clean up a disjointed and inefficient business that was failing after making some huge, and ill-timed, M&A bets that flopped. Teva has settled lawsuits and closed offices and manufacturing facilities while laying off thousands of employees.  Just last month, it sold its U.S. portfolio of OTC products and a 93,000-square-foot manufacturing facility in Copiague, New York, to privately owned PL Developments. The plant has about 80 employees.
梯瓦(Teva)制药公司的首席执行官凯勒·舒尔茨( KwareSchultz )认为,制造是一种削减成本的礼物,只是持续不断地给予。在以色列制药商完成其宣称的30亿美元的成本削减工作后,它仍然可以指望制造效率来提高利润率。 舒尔茨上周在电话会议上公布了这一蓝图,该公司公布了更大的季度净亏损,但他告诉投资者,仍在继续取得进展。他说,公司自2018年制定计划以来,已经削减了27亿美元的运营开支。 舒尔茨说,公司希望通过改善产品结构和提高生产效率,将利润率从目前的23%提高到27%。 “现在,我们不会进行大规模的大规模重组,但我们将持续优化我们的制造足迹,”舒尔茨说,根据 Seek Alpha 的呼吁记录。“我之前说过,我现在再重申一遍,一旦重组计划全面实施,到今年年底,我们将与你们分享我们的长远计划,如何优化未来的制造业。”这是一个很好的例子 这位首席执行官说,经验告诉他,随着时间的推移,公司可以实现增量改进,例如,每年提高50个基点至100个基点。 舒尔茨说:“这并不是线性的,因为当你改变制造业足迹或在更多市场推出产品时,你确实会有一些步骤的改变。”“这是一个长期的承诺,你将继续这样做。这是你做的数千项不同的活动和改变,但这是一种可持续的改进方法,我相信我们将能够继续这样做。” 自舒尔茨2017年被聘用以来,这家制药商已经进行了大量的业务截肢,以清理一项不合作、效率低下的业务。在进行了一些规模庞大、时机不佳的并购押注失败后,这一业务陷入了困境。梯瓦(Teva)已经解决了诉讼,关闭了办公室和生产设施,同时解雇了数千名员工。 就在上个月,该公司将其在美国的非处方药(OTC)产品组合和位于纽约 Copague 的一家9.3万平方英尺的制造工厂出售给了私有的 PL Developments 公司。这家工厂有大约80名员工。