Teva

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Teva Success a. Teva succeeded in Israel by recognizing the synergies that could occur by merging with other pharmaceutical in Israel. World War II had made many well educated chemists migrate to Israel, with this talent approximate 20 family owned pharmaceutical were started.

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The 20 pharmaceuticals shared the market with each having $1M of sales. In 1962 economist Eli Hurvitz and head of an Israeli pharmaceutical, Nachman Salomon, were convinced that the industry needed to be consolidated, feeding on the synergy that each company could give to a combined company would allow the combined company to grow in magnitude. . In the late 1940’s and 50’sTeva and other Israeli pharmaceuticals emerged because big pharmaceuticals were not setting up a presence in Israel and private investors shied away. The lack of presence and investment were due to action taken in 1945 by the Arab League of Nations boycotting any company that did business with Israel. c. Teva set itself apart from its competitors in Israel by looking forward; they saw that consolidation allowed growth having one company offer full complement of products.

They have also used Jewish universities to perform R&D which allowed them to enter the innovative market at a lower R&D, this was not just successful in the Israel market but in the worldwide market. Teva has vulnerabilities in a few fronts. Competitive front: a. The large pharmaceutical threaten Tiva’s market share by starting up their own generic arms. Novartis has done this with Sandoz. b. Large pharmaceuticals are partnering with generic drug companies to file the ANDA and getting the 180 day exclusivity. . Teva also has more competitors from emerging countries that want to take some market share. Strategic front: Teva is spreading into the innovative market and biosimilars. This is increasing their R&D and may lead them away from their core business. Managing Growth through acquisition: Teva has been acquiring and consolidating the market since its inception. They are currently doing this on a global scale. As of 2009 thy have grown to $14 Billion in sales, doubling their 2006 sales.

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