Israel’s Teva to move US HQ from Pennsylvania to New Jersey
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Israel’s Teva to move US HQ from Pennsylvania to New Jersey

Relocation follows 10-year, $40 million tax incentive plan; NJ Governor Phil Murphy announces the news

The Horsham, Pennsylvania, offices of Teva Pharmaceuticals (AP Photo/George Widman)
The Horsham, Pennsylvania, offices of Teva Pharmaceuticals (AP Photo/George Widman)

Teva Pharmaceutical Industries Ltd., the troubled Israeli manufacturer of generic drugs, will be moving its US headquarters from Pennsylvania to New Jersey, lured by 10-year, $40 million tax incentive plan.

New Jersey Governor Phil Murphy announced the news last week. “The presence of global life sciences companies like Teva Pharmaceuticals is critical to New Jersey’s ability to strengthen a thriving innovation ecosystem,” said Murphy in a statement.

The plan requires Teva to bring jobs in New Jersey. Teva will expand its New Jersey location to nearly 350,000 square feet, and expects to transfer or create 843 jobs, while retaining 232 existing positions, the statement said.

The New Jersey Economic Development Authority approved performance-based tax credits for the company at its June board meeting. The incentives include a 10-year, $40 million tax plan, FiercePharma reported.

The Israeli drugmaker has been suffering from price pressure and competition in its core generic business, and by the loss of patent protection on its blockbuster flagship multiple sclerosis drug Copaxone. After buying the generics business of Allergan in 2016 for a massive $40 billion, the company is struggling with a debt load of more than $30 billion. In December the firm, led by newly appointed CEO Kåre Schultz, set out a plan to cut 14,000 jobs, over one-quarter of its global work force, in a bid to cut costs and increase efficiency at the firm.

“While Teva will retain a significant presence in Pennsylvania, reducing the number of sites supports our drive to continue to improve productivity and efficiencies,” Brendan O’Grady, executive vice president at Teva and head of North America commercial, said in the statement.

Teva Pharmaceuticals USA is the North American arm of Teva, which has offices in 60 countries, including 30 locations in the US.

Teva has forecast revenue of $18.3 billion to $18.8 billion for 2018, down from $22.4 billion last year.

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