TEVA ANNOUNCES RESTRUCTURING PLAN AND ADDITIONAL MEASURES TO IMPROVE ITS BUSINESS AND FINANCIAL PERFORMANCE

Total cost base to be reduced by \$3 billion by the end of 2019
Workforce to be reduced by over 25%
Dividend suspended on ordinary shares and ADSs

Jerusalem, December 14, 2017 – Teva Pharmaceutical Industries Ltd. (NYSE & TASE: TEVA) announced today a comprehensive restructuring plan to significantly reduce its cost base, unify and simplify its organization and improve business performance, profitability, cash flow generation and productivity.

Kåre Schultz, Teva's President and CEO, said, "Two weeks ago we announced a new organizational structure and executive management team. Today we are launching a comprehensive restructuring plan, crucial to restoring our financial security and stabilizing our business. We are taking immediate and decisive actions to reduce our cost base across our global business and become a more efficient and profitable company."

"We will execute this plan in a timely and prudent manner, remaining focused on revenue and cash flow generation, in order to make sure Teva is ready to meet all of its financial commitments. Teva will optimize its cost base while ensuring that we protect our revenues and preserve our core capabilities in generics and in select specialty assets, in order to secure long-term growth. In 2018, we expect to secure the successful launches of Austedo and fremanezumab."

The two year restructuring plan announced today is intended to reduce Teva's total cost base by \$3 billion by the end of 2019, out of an estimated cost base for 2017 of \$16.1 billion. More than half of the reduction is expected to be achieved by the end of 2018. The company expects to record a restructuring charge as a result of the implementation of the plan in 2018 of at least \$700 million, mainly related to severance costs, with additional charges possible following decisions on closures or divestments of manufacturing plants, R&D facilities, headquarters and other office locations.

The restructuring plan will focus on:

The immediate deployment of the new unified and simplified organizational structure, announced on November 27. It will deliver cost savings and increase internal efficiencies by reducing layers of

IR Contacts:	Kevin C. Mannix	United States	(215) 591-8912
	Ran Meir	United States	(215) 591-3033
	Tomer Amitai	Israel	972 (3) 926-7656
PR Contacts:	Iris Beck Codner	Israel	972 (3) 926-7208
	Denise Bradley	United States	(215) 591-8974
	Kaelan Hollon	United States	(202) 412-7076

management, and simplifying business structures and processes across the company's global operations. The new structure will support our continued commitment to compliance and business integrity

Substantial optimization of the generics portfolio globally, and most specifically in the United States, through price adjustments and/or product discontinuation. This will enable the company to accelerate the restructuring of its manufacturing and supply network, including the closures or divestments of a significant number of manufacturing plants in the United States, Europe, Israel and Growth Markets
Closures or divestments of a significant number of R&D facilities, headquarters and other office locations across all geographies, delivering efficiencies and substantial cost savings
Teva will work to significantly improve profitability in all existing markets by optimizing their cost base
A thorough review of all R&D programs across the entire company, in generics and specialty, to prioritize core projects and terminate others immediately, while maintaining a substantial pipeline

These steps are expected to result in the reduction of 14,000 positions globally – excluding the impact of any future divestments – over 25% of Teva's total workforce – over the next two years.

The majority of the reductions are expected to occur in 2018, with most of the affected employees being notified within the next 90 days. Restructuring efforts will be done in accordance with applicable local requirements. Consultations with the relevant employee representatives will begin in the near term.

In addition to the restructuring plan, Teva is announcing the following measures to address the company's financial situation:

The company will immediately suspend dividends on ordinary shares and ADSs, while dividends on mandatory convertible preferred shares will be evaluated on a quarterly basis per current practice
Teva's annual bonus for 2017 will not be paid due to the fact that the company's financial results are significantly below our original guidance for the year.
The company will continue to review the potential for additional divestment of non-core assets

Teva will provide full guidance for 2018 in February with the annual results and will share a longer-term strategic direction for the company later in 2018.

Schultz concluded, "These are decisions I don't take lightly but they are necessary to secure Teva's future. We will implement these changes with fairness and the utmost respect for our colleagues

IR Contacts:	Kevin C. Mannix	United States	(215) 591-8912
	Ran Meir	United States	(215) 591-3033
	Tomer Amitai	Israel	972 (3) 926-7656
PR Contacts:	Iris Beck Codner	Israel	972 (3) 926-7208
	Denise Bradley	United States	(215) 591-8974
	Kaelan Hollon	United States	(202) 412-7076

worldwide. Today's announcement is about positioning Teva for a sustainable future which we will achieve with our talented people. We will ensure that we continue to provide high quality medicines to the many patients we serve every day, while adhering to the highest standards of GMP compliance."

The plans were outlined in an email from the CEO to Teva's employees. The message can be accessed here.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading global pharmaceutical company that delivers high-quality, patient-centric healthcare solutions used by approximately 200 million patients in over 60 markets every day. Headquartered in Israel, Teva is the world's largest generic medicines producer, leveraging its portfolio of more than 1,800 molecules to produce a wide range of generic products in nearly every therapeutic area. In specialty medicines, Teva has the world-leading innovative treatment for multiple sclerosis as well as late-stage development programs for other disorders of the central nervous system, including movement disorders, migraine, pain and neurodegenerative conditions, as well as a broad portfolio of respiratory products. Teva is leveraging its generics and specialty capabilities in order to seek new ways of addressing unmet patient needs by combining drug development with devices, services and technologies. Teva's net revenues in 2016 were \$21.9 billion. For more information, visit www.tevapharm.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to:

uncertainties relating to our ability to effectively execute a restructuring plan, including: the effects of such restructuring plan, including facilities and workforce reductions, on our business, operations, revenues and profitability; potential disruptions to our business as a result of the restructuring and management attention to the restructuring; uncertainty regarding the timing and amount of exit and disposal costs and severance, and the potential amount and timing of future cost savings, associated with the restructuring and the related workforce reduction; our ability to manage the costs and liabilities associated with a restructuring plan, including exit and disposal costs and severance; the potential loss of tax benefits in Israel as a result of our restructuring plan; and potential labor unrest as a result of our planned workforce reductions
uncertainties relating to the potential benefits and success of our new organizational structure and recent senior management changes;
our generics medicines business, including: that we are substantially more dependent on this business, with its significant attendant risks, following our acquisition of Allergan plc's worldwide generic pharmaceuticals business ("Actavis Generics"); our ability to realize the anticipated benefits of the acquisition (and any delay

IR Contacts:	Kevin C. Mannix	United States	(215) 591-8912
	Ran Meir	United States	(215) 591-3033
	Tomer Amitai	Israel	972 (3) 926-7656
PR Contacts:	Iris Beck Codner	Israel	972 (3) 926-7208
	Denise Bradley	United States	(215) 591-8974
	Kaelan Hollon	United States	(202) 412-7076

in realizing those benefits) or difficulties in integrating Actavis Generics; the increase in the number of competitors targeting generic opportunities and seeking U.S. market exclusivity for generic versions of significant products; price erosion relating to our generic products, both from competing products and as a result of increased governmental pricing pressures; and our ability to take advantage of high-value biosimilar opportunities;

our specialty medicines business, including: competition for our specialty products, especially Copaxone® , our leading medicine, which faces competition from existing and potential additional generic versions and orally-administered alternatives; our ability to achieve expected results from investments in our product pipeline; competition from companies with greater resources and capabilities; and the effectiveness of our patents and other measures to protect our intellectual property rights;
our substantially increased indebtedness and significantly decreased cash on hand, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, and may result in a downgrade of our credit ratings;
our business and operations in general, including: our ability to develop and commercialize additional pharmaceutical products; manufacturing or quality control problems, which may damage our reputation for quality production and require costly remediation; interruptions in our supply chain; disruptions of our or third party information technology systems or breaches of our data security; the failure to recruit or retain key personnel; the restructuring of our manufacturing network, including potential related labor unrest; the impact of continuing consolidation of our distributors and customers; variations in patent laws that may adversely affect our ability to manufacture our products; our ability to consummate dispositions on terms acceptable to us; adverse effects of political or economic instability, major hostilities or terrorism on our significant worldwide operations; and our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions;
compliance, regulatory and litigation matters, including: costs and delays resulting from the extensive governmental regulation to which we are subject; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; potential additional adverse consequences following our resolution with the U.S. government of our FCPA investigation; governmental investigations into sales and marketing practices; potential liability for sales of generic products prior to a final resolution of outstanding patent litigation; product liability claims; increased government scrutiny of our patent settlement agreements; failure to comply with complex Medicare and Medicaid reporting and payment obligations; and environmental risks;
other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; the significant increase in our intangible assets, which may result in additional substantial impairment charges; potentially significant increases in tax liabilities; and the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business;

and other factors discussed in our Annual Report on Form 20-F for the year ended December 31, 2016 ("Annual Report"), including in the section captioned "Risk Factors," and in our other filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov and www.tevapharm.com. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forwardlooking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

Kevin C. Mannix	United States	(215) 591-8912
		(215) 591-3033
Tomer Amitai	Israel	972 (3) 926-7656
Iris Beck Codner	Israel	972 (3) 926-7208
		(215) 591-8974
Kaelan Hollon	United States	(202) 412-7076
	Ran Meir Denise Bradley	United States United States

To: All Teva employees

Dear Colleagues:

Two weeks ago I announced the new organizational structure and Executive Management. This was the first step in a substantial restructuring plan, which is crucial to restoring our financial security and stabilizing our business.

The organizational restructuring is driven by the need to unify and simplify the organization and improve business performance, and we have no time to waste. We are flattening our organization both top down and sideways, with fewer layers of management and increased accountability. This will ensure better integration, improve productivity and efficiencies, and reduce our cost base.

Today I will share more on how we are moving forward on this process:

We are immediately starting the consolidation and streamlining of our supporting infrastructure, manufacturing, R&D and commercial operations. Some of the former global units will be integrated into the new structure, while others will be made redundant.
We will substantially optimize our generics portfolio globally, and most specifically in the U.S., through price adjustments and/or product discontinuation. This will enable us to accelerate the restructuring of our manufacturing and supply network, including the closures or divestments of a significant number of manufacturing plants in the United States, Europe, Israel and Growth Markets. All decisions will be business driven and based on network rationalization, as such, the ultimate numbers will vary between countries and regions.
We plan to close or divest a significant number of R&D facilities, headquarters and office locations across all geographies.
We are also conducting a thorough review of all R&D generics and specialty programs across the entire company to prioritize core projects and cancel others immediately, while maintaining a substantial pipeline.

Additional measures we are taking include:

The company will immediately suspend dividends on its ordinary shares and ADSs, while dividends on mandatory convertible preferred shares will be evaluated on a quarterly basis as per current practice.
The company will continue to review the potential for the divestment of additional non-core assets.
Teva's annual bonus for 2017 will not be paid due to the fact that the company's financial results are significantly below our original guidance for the year. Sales commissions will be paid in accordance with existing plans. We intend to provide certain annual salary increases based on performance, reflecting Teva's commitment to maintain its competitive position in the market.

We will work to significantly improve the profitability of all existing markets.

The restructuring plan is expected to result in the reduction of approximately 14,000 positions globally, - over 25% of the workforce - over the next two years, excluding the impact of any future divestments. The majority of the reductions are expected to occur in 2018. All businesses and regions will be affected. In order to reduce ambiguity as much as possible, we are committed to implementing this process in a timely and prudent manner. As such, most affected employees are expected to be notified within the next 90 days. We will work closely with employee representatives and unions around the world throughout the process, and all restructuring efforts will be done in accordance with applicable local requirements.

The two year restructuring plan is intended to reduce Teva's total cost base by \$3 billion by the end of 2019, out of an estimated cost base for 2017 of \$16.1 billion. More than half of the reduction is expected to be achieved by the end of 2018.

Every step we take is key to ensuring Teva's stabilization, as we manage our debt and focus our business to become a much more agile, lean and profitable organization. We will do so while ensuring that we protect our revenues and preserve our core capabilities in generics and in selected specialty assets, in order to secure longterm growth. In 2018, we expect to secure the successful launches of AUSTEDO® and fremanezumab.

Making workforce reductions of this magnitude is difficult, and we do not take them lightly. We will be respectful and transparent throughout these processes and offer severance to impacted employees in accordance with applicable local requirements, as well as outplacement services. I am aware that we will be parting with people who have dedicated years and contributed a great deal to this company, and I deeply appreciate their commitment. We are also aware that these changes impact not only our workforce, but vendors, suppliers and communities where we have played a key role for years. However, there is no alternative to these drastic steps in the current situation.

Today's announcements are also about positioning Teva for a sustainable future. Through the restructuring and changes, when there are positions available we will first look to filling them with employees from within the company, rather than external hiring. This will create more opportunities for those who remain with Teva. Following this note, there will be communications from each member of the executive management, updating on their own management teams and structures. All information on structural changes will be transparent and easily accessible. The follow on processes will be completed within your businesses and, as mentioned before, notifications and updates will begin in January 2018.

A longer term strategy will come later in the year, however, in the near term we must remain focused on cash flow generation, short term revenue and serving our debt. We must maintain business continuity, and execute the restructuring, all while adhering to the highest standards of ethics and compliance. Finally, it is imperative that we deliver on our plans so that we regain trust and confidence. This is the only way we will be able to continue providing quality medicines to those we serve.

Thank you for your continued contribution and commitment.

Best Regards,

Kåre

Cautionary Note Regarding Forward-Looking Statements

uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to:

uncertainties relating to our ability to effectively execute a restructuring plan, including: the effects of such restructuring plan, including facilities and workforce reductions, on our business, operations, revenues and profitability; potential disruptions to our business as a result of the restructuring and management attention to the restructuring; uncertainty regarding the timing and amount of exit and disposal costs and severance, and the potential amount and timing of future cost savings, associated with the restructuring and the related workforce reduction; our ability to manage the costs and liabilities associated with a restructuring plan, including exit and disposal costs and severance; the potential loss of tax benefits in Israel as a result of our restructuring plan; and potential labor unrest as a result of our planned workforce reductions
uncertainties relating to the potential benefits and success of our new organizational structure and recent senior management changes;
our generics medicines business, including: that we are substantially more dependent on this business, with its significant attendant risks, following our acquisition of Allergan plc's worldwide generic pharmaceuticals business ("Actavis Generics"); our ability to realize the anticipated benefits of the acquisition (and any delay in realizing those benefits) or difficulties in integrating Actavis Generics; the increase in the number of competitors targeting generic opportunities and seeking U.S. market exclusivity for generic versions of significant products; price erosion relating to our generic products, both from competing products and as a result of increased governmental pricing pressures; and our ability to take advantage of high-value biosimilar opportunities;
our specialty medicines business, including: competition for our specialty products, especially Copaxone® , our leading medicine, which faces competition from existing and potential additional generic versions and orally-administered alternatives; our ability to achieve expected results from investments in our product pipeline; competition from companies with greater resources and capabilities; and the effectiveness of our patents and other measures to protect our intellectual property rights;
our substantially increased indebtedness and significantly decreased cash on hand, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, and may result in a downgrade of our credit ratings;
our business and operations in general, including: our ability to develop and commercialize additional pharmaceutical products; manufacturing or quality control problems, which may damage our reputation for quality production and require costly remediation; interruptions in our supply chain; disruptions of our or third party information technology systems or breaches of our data security; the failure to recruit or retain key personnel; the restructuring of our manufacturing network, including potential related labor unrest; the impact of continuing consolidation of our distributors and customers; variations in patent laws that may adversely affect our ability to manufacture our products; our ability to consummate dispositions on terms acceptable to us; adverse effects of political or economic instability, major hostilities or terrorism on our significant worldwide operations; and our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions;
compliance, regulatory and litigation matters, including: costs and delays resulting from the extensive governmental regulation to which we are subject; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; potential additional adverse consequences following our resolution with the U.S. government of our FCPA investigation; governmental investigations into sales and marketing practices; potential liability for sales of generic products prior to a final resolution of outstanding patent litigation; product liability claims; increased government scrutiny of our patent settlement agreements; failure to comply with complex Medicare and Medicaid reporting and payment obligations; and environmental risks;
other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; the significant increase in our intangible assets, which may result in additional substantial impairment charges; potentially significant increases in tax liabilities; and the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business;

contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

טבע מודיעה על תכנית רה-ארגון ועל צעדים נוספים לשיפור הביצועים העסקיים והפיננסיים

סך בסיס העלויות יפחת ב3- מיליארד דולר עד סוף שנת 2019
- כוח העבודה יצומצם ביותר מ25%-
- תשלום דיבידנד בגין מניות רגילות יושעה באופן מיידי

ירושלים, 14 בדצמבר, 2017 – טבע תעשיות פרמצבטיות בע"מ )NYSE ו-TASE: TEVA )הודיעה היום על תכנית רה-ארגון מקיפה שתפחית באופן משמעותי את בסיס העלויות של החברה, תפשט ותייעל את הארגון ותשפר את הביצועים העסקיים, הרווחיות, יצירת תזרים המזומנים והפריון.

קאר שולץ, נשיא ומנכ"ל טבע, אמר, "לפני שבועיים הכרזנו על מבנה ארגוני והנהלה חדשים. היום אנו מודיעים על תכנית רה-ארגון מקיפה, החיונית להשבת הביטחון הפיננסי והיציבות העסקית של טבע. אנו נוקטים בפעולות מיידיות ונחושות כדי להפחית את בסיס העלויות של החברה בכל פעילותה העסקית הגלובלית במטרה להפוך לחברה יעילה ורווחית יותר."

"אנו נבצע את התכנית באופן שקול ומהיר ככל האפשר ונתמקד בשורת ההכנסות ובתזרים המזומנים, על-מנת להבטיח שטבע תוכל לעמוד בכל התחייבויותיה הפיננסיות. טבע תערוך אופטימיזציה מקיפה של בסיס העלויות, תוך שהיא מגנה על הכנסותיה ויכולות הליבה שלה בגנריקה ובנכסים ייחודיים נבחרים, כדי להבטיח צמיחה בטווח הארוך. ב2018- אנו נתמקד בביצוע השקות מוצלחות של Austedo ו- fremanezumab."

תכנית הרה-ארגון הדו-שנתית המפורסמת היום נועדה להפחית את בסיס העלויות הכולל של טבע ב3- מיליארד דולר עד סוף ,2019 מתוך בסיס עלויות משוער של 16.1 מיליארד דולר בשנת .2017 יותר ממחצית מההפחתה הכוללת צפויה להתבצע עד סוף שנת .2018 כתוצאה מיישום התכנית החברה מצפה לרשום בשנת 2018 הפרשה בגין רה- ארגון של 700 מיליון דולר לפחות, המיוחסים בעיקר לתשלום פיצויי פיטורין. ייתכנו הפרשות נוספות בעקבות החלטות אפשריות על סגירת פעילויות או מכירה של מפעלי ייצור, אתרי מו"פ, מטה ומשרדים.

תכנית הרה-ארגון תתמקד בדברים הבאים:

יישום מיידי של המבנה הארגוני החדש, תוך פישוט וייעול המערך כולו, כפי שפורסם ב27- בנובמבר. מבנה זה יביא לחיסכון בעלויות וישפר את היעילות הפנימית על-ידי הסרת שכבות ניהול ופישוט של מבנים ותהליכים עסקיים בכל רחבי פעילותה הגלובלית של החברה. המבנה החדש יתמוך במחויבותנו המתמשכת לציות, אכיפה והגינות עסקית
- אופטימיזציה מקיפה של הפורטפוליו הגנרי הגלובלי, ובמיוחד בארה"ב, באמצעות התאמות מחירים ו/או הפסקת ייצור מוצרים. מהלך זה יאפשר לחברה להאיץ את ייעול מערך הייצור והאספקה, לרבות סגירה או מכירה של מספר משמעותי של מפעלי ייצור בארצות הברית, אירופה, ישראל ובשווקים הצומחים
- סגירה או מכירה של מספר משמעותי של אתרי מו"פ, מטה ומשרדים בכל העולם, אשר יביאו להתייעלות וחסכון משמעותי בעלויות
  - טבע תפעל לשיפור משמעותי ברווחיות בכל השווקים הקיימים על ידי אופטימיזציה של בסיס העלויות
- בחינה יסודית של כל תכניות המו"פ בכל החברה, הן בגנריקה והן בתרופות הייחודיות, נתעדף את פרויקטי הליבה ונעצור מיידית פרויקטים אחרים, תוך שמירה על צבר מוצרים משמעותי

תכנית הרה-ארגון צפויה להביא לצמצום של כ14,000- משרות ברחבי העולם במהלך השנתיים הקרובות. משרות אלו מהוות מעל ל25%- מכוח העבודה בטבע. מספר זה אינו כולל משרות שיושפעו ממכירה עתידית של נכסים. מרבית הצמצומים צפויים להתבצע בשנת .2018 רוב העובדים המושפעים מהתכנית צפויים לקבל הודעה במהלך 90 הימים הקרובים. כל תהליכי הרה-ארגון ייעשו בהתאם לדרישות המקומיות הרלוונטיות. התייעצויות עם נציגי העובדים הרלוונטיים יתחילו בתקופה הקרובה.

בנוסף לתכנית הרה-ארגון, טבע מודיעה על הצעדים הבאים להתמודדות עם מצבה הפיננסי של החברה:

החברה תשעה באופן מיידי תשלום דיבידנדים למניות הרגילות, בעוד שדיבידנדים בגין מניות הבכורה ייבחנו על בסיס רבעוני בהתאם לפרקטיקה הנהוגה
- הבונוס הכספי השנתי לשנת 2017 לא ישולם בשל העובדה שהתוצאות הפיננסיות של החברה נמוכות משמעותית מהתחזית השנתית המקורית
  - החברה תמשיך לבחון את הפוטנציאל של מכירת נכסים נוספים שאינם בתחומי הליבה

בחודש פברואר 2018 טבע תספק תחזית מלאה לשנת 2018 יחד עם התוצאות השנתיות. טבע תשתף בכיוון האסטרטגי ארוך הטווח שלה בהמשך .2018

שולץ סיכם: "מדובר בהחלטות שאינני לוקח בקלות אך הן נחוצות כדי להבטיח את עתידה של טבע. אנו ניישם את השינויים הללו בהגינות ובכבוד כלפי עמיתנו בכל העולם. ההודעה של היום עוסקת בהבטחת עתידה של טבע, אותו נשיג יחד עם האנשים המוכשרים שלנו. אנו נוודא כי נמשיך לספק תרופות איכותיות למטופלים הרבים אותם אנו משרתים מדי יום, תוך שאנו עומדים בסטנדרטים הגבוהים ביותר של תנאי ייצור נאותים )GMP" ).

התוכנית מפורטת בהודעת דואר אלקטרוני של המנכ"ל לעובדי טבע. ניתן לקרוא את ההודעה באתר החברה.

אודות טבע

טבע תעשיות פרמצבטיות בע"מ )TEVA :TASE & NYSE )היא חברת תרופות גלובלית המספקת פתרונות בריאות ממוקדי-מטופל באיכות גבוהה המשמשים כ200- מיליוני מטופלים במעל ל60- שווקים מדי יום. טבע, שבסיסה בישראל, היא יצרנית התרופות הגנריות הגדולה בעולם, הממנפת את צבר מוצריה הכולל יותר מ1,800- מולקולות לייצור מגוון רחב של מוצרים גנריים ברוב התחומים הטיפוליים. בתחום התרופות הייחודיות, לטבע יש את הטיפול החדשני המוביל בעולם לטיפול בטרשת נפוצה וכן תכניות מחקר מתקדמות למחלות אחרות של מערכת העצבים המרכזית, כולל הפרעות תנועה, מיגרנה, כאב ותופעות ניווניות, וכן פורטפוליו מוצרים רחב בתחום הנשימה. טבע ממנפת את יכולותיה בגנריקה ובתרופות הייחודיות במטרה לחפש דרכים חדשות לענות על צרכי המטופלים, וזאת על ידי שילוב פיתוח תרופות יחד עם פיתוח תכשירים, שירותים וטכנולוגיות. הכנסות טבע בשנת 2016 הסתכמו ב21.9- מיליארד דולר. למידע נוסף, בקרו באתר החברה בכתובת com.tevapharm.www.

Cautionary Note Regarding Forward-Looking Statements

uncertainties relating to our ability to effectively execute a restructuring plan, including: the effects of such restructuring plan, including facilities and workforce reductions, on our business, operations, revenues and profitability; potential disruptions to our business as a result of the restructuring and management attention to the restructuring; uncertainty regarding the timing and amount of exit and disposal costs and severance, and the potential amount and timing of future cost savings, associated with the restructuring and the related workforce reduction; [and] our ability to manage the costs and liabilities associated with a restructuring plan, including exit and disposal costs and severance; [the potential loss of tax benefits in Israel as a result of our restructuring plan; and potential labor unrest as a result of our planned workforce reductions;;
our generics medicines business, including: that we are substantially more dependent on this business, with its significant attendant risks, following our acquisition of Allergan plc's worldwide generic pharmaceuticals business ("Actavis Generics"); our ability to realize the anticipated benefits of

our specialty medicines business, including: competition for our specialty products, especially Copaxone® , our leading medicine, which faces competition from existing and potential additional generic versions and orally-administered alternatives; our ability to achieve expected results from investments in our product pipeline; competition from companies with greater resources and capabilities; and the effectiveness of our patents and other measures to protect our intellectual property rights;
our substantially increased indebtedness and significantly decreased cash on hand, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, and may result in a downgrade of our credit ratings;
our business and operations in general, including: our ability to develop and commercialize additional pharmaceutical products; manufacturing or quality control problems, which may damage our reputation for quality production and require costly remediation; interruptions in our supply chain; disruptions of our or third party information technology systems or breaches of our data security; the failure to recruit or retain key personnel;the restructuring of our manufacturing network, including potential related labor unrest; the impact of continuing consolidation of our distributors and customers; variations in patent laws that may adversely affect our ability to manufacture our products; our ability to consummate dispositions on terms acceptable to us; adverse effects of political or economic instability, major hostilities or terrorism on our significant worldwide operations; and our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions;
compliance, regulatory and litigation matters, including: costs and delays resulting from the extensive governmental regulation to which we are subject; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; potential additional adverse consequences following our resolution with the U.S. government of our FCPA investigation; governmental investigations into sales and marketing practices; potential liability for sales of generic products prior to a final resolution of outstanding patent litigation; product liability claims; increased government scrutiny of our patent settlement agreements; failure to comply with complex Medicare and Medicaid reporting and payment obligations; and environmental risks;
other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; the significant increase in our intangible assets, which may result in additional substantial impairment charges; potentially significant increases in tax liabilities; and the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business;

and other factors discussed in our Annual Report on Form 20-F for the year ended December 31, 2016 ("Annual Report"), including in the section captioned "Risk Factors," and in our other filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov and www.tevapharm.com. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forwardlooking statements.

עובדות ועובדים יקרים,

לפני כשבועיים הצגתי בפניכם את המבנה הארגוני וצוות ההנהלה החדש. זה היה צעד ראשון ומשמעותי בתכנית רה-ארגון מקיפה, החיונית להשבת הביטחון הפיננסי והיציבות העסקית של טבע.

מטרת התכנית היא פישוט הארגון וייעולו על מנת לשפר את הביצועים העסקיים, ואנו חייבים לפעול מייד. אנו משטחים את הארגון בכל הרמות, מורידים שכבות ניהול ומרחיבים תחומי אחריות. כך נפשט ונייעל את הארגון, נגביר את היעילות והפריון ונפחית באופן משמעותי את בסיס העלויות של החברה.

להלן הצעדים הבאים בתכנית הרה-ארגון:

נתחיל מיידית ביישום המבנה הארגוני החדש, תוך פישוט וייעול המערך כולו היחידות התומכות, מערך התפעול, המו"פ והארגונים המסחריים. חלק מהיחידות הגלובליות מהמבנה הקודם ישולבו לתוך המבנה החדש, ואילו אחרות יתייתרו.
נערוך אופטימיזציה מקיפה של הפורטפוליו הגנרי של טבע בכל העולם, ובעיקר בארה"ב, באמצעות התאמות מחירים ו/או הפסקת ייצור מוצרים. מהלך זה יאפשר לנו להאיץ את ייעול מערך הייצור והאספקה של טבע, כולל סגירה או מכירה של מספר משמעותי של אתרי ייצור בישראל, ארה"ב, אירופה והשווקים הצומחים. ההחלטות יתקבלו על פי שיקולים עסקיים, והתוצאות הסופיות יתבססו על רציונליזציה של מערך הייצור הגלובלי, מסיבה זו, ההשפעה תהיה שונה בין אזורים ומדינות שונות.
- אנו מתכננים לסגור או למכור מספר משמעותי של אתרי מו"פ, מטה ומשרדים בכל העולם.
אנו בוחנים באופן יסודי את כל תכניות המו"פ בחברה, הן בתחום הגנרי והן בתחום הייחודי. נתעדף את פרויקטי הליבה ונעצור מיידית פרויקטים אחרים, תוך שמירה על צבר משמעותי של מוצרים בפיתוח.

בנוסף, ננקוט בפעולות הבאות להתמודדות עם מצבה הפיננסי של החברה:

טבע תשעה באופן מיידי תשלום דיבידנדים על מניות רגילות/ADRs. תשלום הדיבידנד בגין מניות בכורה הניתנות להמרה ייבחן מדי רבעון, על פי הנוהג הקיים.
- החברה תמשיך לבחון את הפוטנציאל של מכירת נכסים נוספים שאינם נכסי ליבה.
בשל אי עמידה ביעדים, לא ישולם בונוס לשנת 2017 התוצאות הפיננסיות של החברה נמוכות משמעותית מהתחזית המקורית לשנה זו. עמלות מכירה ישולמו לפי התכניות הקיימות. בכוונתנו לבצע העלאות שכר שנתיות מסוימות תלויות-ביצועים, המשקפות את מחויבותה של טבע להמשיך להיות מעסיק תחרותי.
- נפעל לשיפור משמעותי ברווחיות העסקית בכל השווקים בהם טבע פועלת כיום.

תכנית הרה-ארגון צפויה להביא לצמצום של כ14,000- משרות ברחבי העולם במהלך השנתיים הקרובות. משרות אלו מהוות מעל 25% מכוח העבודה בטבע. מספר זה אינו כולל משרות שיושפעו ממכירה עתידית של נכסים. מרבית הצמצומים צפויים להתבצע במהלך שנת .2018 כל היחידות העסקיות, בכל האזורים, יושפעו. במטרה להפחית את חוסר הוודאות, אנו מחויבים לבצע את התהליך באופן שקול ומהיר ככל האפשר. בהתאם לכך, רוב העובדים המושפעים מהתכנית צפויים לקבל הודעה במהלך 90 הימים הקרובים. אנו נפעל מול נציגי העובדים והוועדים ברחבי העולם לאורך התהליך כולו, וכל מהלכי הרה-ארגון יבוצעו בהתאם לדרישות החוק המקומי. תכנית הרה-ארגון הדו-שנתית מתוכננת להפחית את בסיס העלויות הכולל של טבע ב3- מיליארד דולר עד סוף ,2019 מתוך בסיס עלויות משוער של 16.1 מיליארד דולר ב.2017- יותר ממחצית מההפחתה צפויה להתבצע עד סוף .2018

הפעולות שאנו נוקטים הן חשובות וחיוניות. הן מאפשרות לנו להבטיח את יציבות החברה בזמן שאנו פועלים לניהול החוב ומיקוד הפעילות העסקית, כדי להפוך את טבע לחברה יעילה, גמישה ורווחית הרבה יותר. במקביל לצעדי הרה-ארגון, נפעל להגן על ההכנסות ולשמור על יכולות הליבה שלנו בגנריקה ובנכסים ייחודיים נבחרים, כדי להבטיח צמיחה בטווח הארוך. ב,2018- נתמקד בביצוע השקות מוצלחות R של AUSTEDO ו-fremanezumab.

צמצום משרות בהיקף משמעותי כפי שהודענו היום הוא מהלך קשה, ואיננו מקלים בכך ראש.

אנו מחויבים לנהל את כל התהליכים בהגינות ובשקיפות. פיצויי פיטורים יוענקו בהתאם לדרישות המקומיות, וכמו כן יוצעו שירותי השמה חלופית לעובדים העוזבים. אנו נפרדים מאנשים אשר הקדישו שנים לטבע ותרמו רבות לחברה, ואני מעריך מעומק לבי את מחויבותם. אנו מודעים גם לכך שהשינויים משפיעים לא רק על עובדי החברה, אלא גם על שותפים, ספקים וקהילות, עבורם מילאנו תפקיד מפתח במהלך השנים. למרות הכל, במציאות העסקית הנוכחית אין לנו ברירה אלא לנקוט צעדים דרסטיים.

במקביל, הצעדים שאנו נוקטים היום נועדו גם למצב את טבע לעתיד. במהלך תהליך הרה-ארגון, ככל שתיפתחנה משרות, נוודא כי ההזדמנות הראשונה תינתן לעובדים מתוך החברה ולא נגייס מבחוץ. מהלך זה יאפשר הזדמנויות רבות יותר לעובדים שנשארים בטבע.

בהמשך להודעה זו יישלחו הודעות מחברי צוות ההנהלה של טבע, אשר יעדכנו לגבי המבנה וההנהלה של יחידתם. כל המידע על השינויים הארגוניים יהיה נגיש ופתוח בפניכם. המשך יישום התכנית יתנהל ביחידתכם, וכפי שהוזכר כבר, הודעות ועדכונים נוספים יינתנו בינואר .2018

אסטרטגיה ארוכת טווח תוצג בהמשך השנה. בטווח הקרוב אנו חייבים להישאר ממוקדים בתזרים המזומנים, הכנסות לטווח קצר והחזר החוב. אנו חייבים לשמור על המשכיות עסקית במקביל לביצוע הרה-ארגון, וזאת תוך עמידה בסטנדרטים הגבוהים ביותר של אתיקה, אכיפה וציות לתקנות. אנו חייבים לעמוד ביעדים העסקיים וביעדי התכנית במטרה להשיב את האמון והביטחון בחברה – זו הדרך היחידה בה נוכל להמשיך לספק תרופות איכותיות לאנשים ברחבי העולם.

תודה לכולכם על המחויבות והתרומה לטבע.

בברכה,

קאר

Cautionary Note Regarding Forward-Looking Statements

uncertainties relating to our ability to effectively execute a restructuring plan, including: the effects of such restructuring plan, including facilities and workforce reductions, on our business, operations, revenues and profitability; potential disruptions to our business as a result of the restructuring and management attention to the restructuring; uncertainty regarding the timing and amount of exit and disposal costs and severance, and the potential amount and timing of future cost savings, associated with the restructuring and the related workforce reduction; our ability to manage the costs and liabilities associated with a restructuring plan, including exit and disposal costs and severance; the potential loss of tax benefits in Israel as a result of our restructuring plan; and potential labor unrest as a result of our planned workforce reductions

uncertainties relating to the potential benefits and success of our new organizational structure and recent senior management changes;
our generics medicines business, including: that we are substantially more dependent on this business, with its significant attendant risks, following our acquisition of Allergan plc's worldwide generic pharmaceuticals business ("Actavis Generics"); our ability to realize the anticipated benefits of the acquisition (and any delay in realizing those benefits) or difficulties in integrating Actavis Generics; the increase in the number of competitors targeting generic opportunities and seeking U.S. market exclusivity for generic versions of significant products; price erosion relating to our generic products, both from competing products and as a result of increased governmental pricing pressures; and our ability to take advantage of high-value biosimilar opportunities;
our specialty medicines business, including: competition for our specialty products, especially Copaxone® , our leading medicine, which faces competition from existing and potential additional generic versions and orally-administered alternatives; our ability to achieve expected results from investments in our product pipeline; competition from companies with greater resources and capabilities; and the effectiveness of our patents and other measures to protect our intellectual property rights;
our substantially increased indebtedness and significantly decreased cash on hand, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, and may result in a downgrade of our credit ratings;
our business and operations in general, including: our ability to develop and commercialize additional pharmaceutical products; manufacturing or quality control problems, which may damage our reputation for quality production and require costly remediation; interruptions in our supply chain; disruptions of our or third party information technology systems or breaches of our data security; the failure to recruit or retain key personnel; the restructuring of our manufacturing network, including potential related labor unrest; the impact of continuing consolidation of our distributors and customers; variations in patent laws that may adversely affect our ability to manufacture our products; our ability to consummate dispositions on terms acceptable to us; adverse effects of political or economic instability, major hostilities or terrorism on our significant worldwide operations; and our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions;
compliance, regulatory and litigation matters, including: costs and delays resulting from the extensive governmental regulation to which we are subject; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; potential additional adverse consequences following our resolution with the U.S. government of our FCPA investigation; governmental investigations into sales and marketing practices; potential liability for sales of generic products prior to a final resolution of outstanding patent litigation; product liability claims; increased government scrutiny of our patent settlement agreements; failure to comply with complex Medicare and Medicaid reporting and payment obligations; and environmental risks;
other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; the significant increase in our intangible assets, which may result in additional substantial impairment charges; potentially significant increases in tax liabilities; and the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business;

and other factors discussed in our Annual Report on Form 20-F for the year ended December 31, 2016 ("Annual Report"), including in the section captioned "Risk Factors," and in our other filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov and www.tevapharm.com. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

AI assistant

Teva Pharmaceutical Industries Ltd. Earnings Release 2017

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