Teva Pharmaceutical Industries (TEVA) on Monday said Kare Schultz will be its new president and chief executive, ending a search process that began in February. “We believe adding a highly creditable CEO with significant industry and turnaround experience represents a clear positive for Teva,” JPMorgan said. in a note to clients. “At the same time, we do not see any quick fixes for Teva given the highly competitive intensity in Teva’s US generics business (which we do not see growing until 2019), potential Copaxone generic competition in 2018, and high leverage challenges. We see an extended road to recovery given these fundamental and strategic challenges.”
Schultz has “significant” experience in the industry, the bank said and will be closely watched for any insights into his turnaround strategy. He was most recently CEO of H. Lundbeck A/S from 2015 to 2017 and chief operating officer at Novo. Any pivot to branded specialty growth will be a difficult task given the company’s limited branded pipeline and elevated leverage that limit options for business development, JPMorgan said.