Teva CEO Erez Vigodman leaves abruptly

  • Signs for push-out forces
  • After almost three years on the job
  • Thanks and good wishes for Vigodman
  • Yitzhak Peterburg taking over in the interim
  • Search for a successor

(management-change.com) — Jerusalem, Israel, February 06, 2017 — Erez Vigodman, chief executive of Teva, leaves. It is an abrupt change. As announced by Teva Pharmaceutical Industries Ltd. in a news release on Monday, February 06, 2017, Erez Vigodman leaves the post as Chief Executive Officer at the pharmaceutical company in a surprising move after almost three years on the job, effective immediately.

No company wants a CEO to flame out in the first years.

Teva will undertake a search for a successor.

Vigodman’s duties are taken over in the interim by Yitzhak Peterburg, most recently Chairman at Teva Pharmaceutical Industries Ltd.

“Immediate focus on realizing the cost synergies and strategic benefits of the Actavis Generics acquisition”

A reason for the sudden change was not explicitly given. Yitzhak Peterburg said: “The Company is focusing on executing its strategic priorities to transform Teva, with immediate focus on realizing the cost synergies and strategic benefits of the Actavis Generics acquisition.”

“Conduct a thorough review of the business”

Peterburg added: “I look forward to working with the entire Teva team to conduct a thorough review of the business to find additional opportunities to enhance value for shareholders.”

“Stepping down” – “Mutual agreement”

Teva said: “Yitzhak Peterburg, who has served as Chairman of the Teva Board of Directors since January 2015, has been appointed Interim President and Chief Executive Officer, effective immediately. This follows the mutual agreement between the Board of Teva and Erez Vigodman that Mr. Vigodman is stepping down.”

Vigodman’s service on the Teva Board of Directors has also ended.

Precise information about the future plans of Vigodman was not immediately available.

Share price decline

The change follows a sharp decline in the share price of Teva Pharmaceutical Industries Ltd. since June 2015.

On the job as CEO since 2014

Vigodman served as the Chief Executive Officer and President of Teva Pharmaceutical Industries Limited since February 11, 2014.

Erez Vigodman became Teva’s President and Chief Executive Officer in February 2014 after joining Teva’s Board of Directors in 2009.

From 2010 to 2014, he served as President and Chief Executive Officer of Adama Agricultural Solutions Ltd. (formerly Makhteshim Agan Industries Ltd.), the world’s leading generic crop protection (agrochemical) company.

From 2001 to 2009, he served as President and Chief Executive Officer of Strauss Group Ltd.

Vigodman is a member of the Advisory Committee to the Israel National Economic Council and the International Advisory Board of the Israel Science Technology & Innovation Policy Institute.

Vigodman received a B.A. in accounting and economics from Tel Aviv University in 1987 and is a graduate of the program of Management Development at Harvard Graduate School of Business Administration.

Vigodman is a certified public accountant.

Signs for push-out forces

It is not completely certain what forces eventually triggered Erez Vigodman’s move.

The Push-out Score™ determined by management-change.com suggests that push-out forces may have contributed to the management change.

Read the full story in the management-change.com report 07.2017 ($).