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Teva Pharmaceuticals Global Position1Joe RicardoBusiness 620APUSApril 26, 2015
Teva Pharmaceutical’s Global PositionAbstractThis research paper will focus on Teva Pharmaceutical Industries competitive position in both the generic and brand name pharmaceutical global market with more focus on the former. This paper will analyze their global position in the generic drug market with an emphasis on their position within the United States. The paper will focus on how Teva competes in the industry as well as their competitive advantages. We will analyze their resources as well as opportunities andhow Teva should continue their operations moving forward.2
Teva Pharmaceutical’s Global PositionIntroductionEli Hurvitz is credited with merging Assia Chemical Labs Ltd. with Zori in 1964 which eventually gained controlling interest in Teva in 1969. By 1976 the three companies merged into one. After becoming the market leader in Israel the company under Hurvitz as CEO decided it would be best to expand into the western market (Pearce & Robinson, 2013). Today Teva Pharmaceuticals is the leading provider of generic drugs in the world. Teva is the leading provider of FDA approved generic pharmaceuticals in the United States. Generic pharmaceuticals are bioequivalent drugs which can be used in place of brand name drugs. These generics are in most cases equivalent in medical use to those of the brand name equivalents. In fact one out of seven of the 3.4 billion generic prescriptions filled in the United States are filled with Teva’s pharmaceutical products (Teva Pharmaceuticals USA, Inc, 2015). Generic pharmaceuticals are a more profitable business than that of name brand pharmaceuticals. While brand name pharmaceuticals bring in revenues of approximately $ 225 billion, the gross profits received from those revenues are only $ 5 billion (Phein, A.J. 2010). Compare that to generic pharmaceutical revenues of only $ 24 billion, with gross profits of $ 2.5 billion. That is equal to a