Teva Pharmaceuticals eyes emerging markets as part of growth strategy

By Lisa Kerner

Charlotte, N.C., Sept. 14 - Teva Pharmaceutical Industries Ltd. isn't ruling out anything when comes to the company's acquisition strategy, said Teva Pharmaceuticals USA chief executive officer William Marth.

"We're going to grow Teva regardless," Marth said speaking during the Morgan Stanley Global Healthcare Conference on Monday.

According to Marth, Teva wants to keep a balance in its business between generics and innovation.

Currently the company is at about a 70% to 30% ratio, Marth said.

To keep that balance, Teva, a leader in the generic drug market, could buy a specialty company or make more generic purchases outside of the United States.

The global generic marketplace is expected to be worth $120 billion in 2012, Marth said.

While he wouldn't comment on specific individual acquisitions, Marth said "everything is in play."

Marth said he thinks investors may miss both the geographic and business segment diversification of Teva, citing growth of emerging markets outside of the United States.

Teva's growth in Europe "has not been as exciting as we'd like," Marth said.

European government actions have stalled Teva's top-line growth, but the company still sees plenty of opportunity in Spain, Italy and Turkey.

The company manufactures, but does not sell in India or China, and is enjoying some success in France.

Marth said it may take time to move into Japan because it is a very branded culture.

"Our end game is the generic generic market," said Marth.

Teva develops, manufactures and markets generic and innovative pharmaceuticals as well as active pharmaceutical ingredients. The company is based in Petach Tikva, Israel.

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