Teva’s innovative growth strategy, Part Deux

Teva is again turning to its innovative medicines pipeline and increased pace in partnering as a strategy to return the Israeli biopharma company to growth. But the company’s P&L may limit its ability to both invest in higher risk innovative programs and in-license new pipeline programs.

Teva tried to invoke this very same strategy 10 years ago under then President and CEO Jeremy Levin. But that strategy barely got off the ground after Levin departed less than a year later. The financial position of Teva 10 years ago is nothing close to the one today. In 2013, Teva had $20 billion in revenues, an operating income of $1.6 billion and a debt-to-equity ratio of 1.1...