**4. Findings**

### **4.1 Competitors**

Teva has several competitors in the global market, like Momenta Pharmaceuticals, Mylan, Synthon, Unipharm and Rafa. Another name worth mentioning is Allergan, which, in 2015, became the largest shareholder of Teva after Teva acquired Allergan's generic pharmaceutical division.

One of the main products of Momenta Pharmaceuticals is Glatopa®, a generic form of COPAXONE®. In 2015 Glatopa® was approved by the US FDA and launched in the United States. Momenta Pharmaceuticals collaborated with Sandoz, a Novartis company, to produce Glatopa®. The intent was for Glatopa® to replace Teva's 40 mg dose of COPAXONE® [12].

The multinational drug development company, Mylan, was registered and based in the Netherlands, with branches in the U.K. and Pennsylvania. Until 2007, the American branch of Mylan only operated in the domestic market. However, after Mylan acquired German drug company Merck, and the Indian Laboratories of Matrix, Mylan became the second-largest generic drug company in the world, after Teva. Mylan started marketing their version of the 40 mg dose of COPAXONE® in October 2017 [13].

The Dutch company Synthon, is an international pharmaceutical company and one of the leaders in the field of generic medicines. In 2017, Synthon announced that it had successfully conducted clinical trials in order to prove that its glatiramer acetate (sold as Remurel by Alvogen) provided the same therapeutic benefit as Teva's 40 mg COPAXONE®. Synthon received the European Medical Agency's approval in a process in which all 29 E.U. Member states adopted the approval [14].

Regarding the key competitors in the domestic market, Unipharm and Rafa are worth mentioning. Unipharm, had been developing and marketing generic drugs since 1975. Founded by pharmacist Zvulun Tomer, the company was a pioneer in the generic drugs force. Unipharm's drugs targeted the treatment of a wide range of diseases and symptoms such as mental health, heart health, sleep, Alzheimer's, infectious diseases, urology, eyes, and more. In 2017, Unipharm launched a new plant in Mavo Carmel. At this manufacturing plant, Unipharm introduced new technologies and development processes to achieve production efficiencies and cost savings in generic drug manufacturing [15]. It uses innovative approaches to act as a one-stop solution for health manufacturing needs and thus poses challenges to Teva.

Rafa was founded in 1937 and is one of the leading pharmaceutical companies in the country. The company specialized in the marketing, manufacturing, and distributing of novel and generic drugs, prescription drugs, over-the-counter drugs, as well as therapeutic products. Rafa products were marketed to all Israeli health institutions, such as public and private hospitals, clinics, health clinics, and more, serving a wide range of ages in the population, from infants to the elderly [16]. The company focuses on research activities to introduce the latest drugs and therapies relating to different conditions and thus poses a challenge for Teva [17].

#### **4.2 The business strategy**

Since the 2000s, Teva had embarked on an acquisition strategy – buying over large generic drug companies to create value for the company. Some acquisitions seemed initially successful but proved otherwise later. Other acquisitions lacked clear plans. When Teva acquired U.S. drug company Cephalon in October 2011, Cephalon's R&D team took over the development of the anti-depression drug. Within a year, the R&D employees were laid off.

The acquisitions resulted in significant short-term financial gains because stock prices could be raised through acquisitions. Chief executives of that period had focused on creating shareholder value through mergers and acquisitions in the pharmaceutical market, rather than focusing their energy on their drug clientele and patients. They also channeled investments away from the research and development of drugs such as COPAXONE®.

#### **4.3 Stock performance**

Teva had a "dual stock," or a stock that traded in two trading areas: in the home country of the company, and in the stock exchange of another large country. Teva's dual stock was traded on the Tel Aviv Stock Exchange as well as the New York Stock Exchange.

At the beginning of the 2000s, Teva's share rose 20 times, which significantly impacted the Tel Aviv Stock Exchange. Investment in Teva had become extremely popular and was even referred to as the "people's share." However, Teva stock also experienced sharp declines during 1998, the middle of 2004, and after the publication of negative reports in 2006. A financial commentator at one point even said, the public suddenly understands that "Teva is also a share."

From the beginning of 2014 until the middle of 2015, Teva's share price almost doubled, but by the end of 2016, it returned to the level that it was in early 2014. In May 2017, Teva's share dropped to a level that it has not been since 2005.
