Teva Pharmaceuticals Global Position
1
Joe Ricardo
Business 620
APUS
April 26, 2015
Teva Pharmaceutical’s Global Position
Abstract
This 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 and
how Teva should continue their operations moving forward.
2
Teva Pharmaceutical’s Global Position
Introduction
Eli 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
