Teva plans to ramp up R&D after axing 5,000 staffers

Teva ($TEVA) has sketched out plans to ax 5,000 employees, about 10% of the total workforce, with most of the cuts coming by the end of 2014. The company statement on the restructuring is light on details, but the company says it plans to use part of its $2 billion in savings from the reorganization on an expanded R&D effort. "These investments will include the development of the company's complex generics and specialty pharmaceutical pipeline, which includes more than 30 late-stage programs," says Teva in its release. Teva CEO Jeremy Levin has vowed to improve the performance of R&D, but the company has a spotty record in research. Its sleep drug Nuvigil just failed another Phase III study for depression a few weeks ago, forcing the generics giant to scrap the effort. Its cash cow Copaxone faces generic competition next spring, and analysts have been turning up the heat on the company to do something effective in terms of new product development. Release

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