Analysts in Tel Aviv see the change of leadership at generic pharmaceuticals giant Teva, with Makhteshim-Agan CEO Shlomo Yanai taking over from Israel Makov, as unwelcome news. Analyst Uri Hershkovitz of the Sphera Fund told "Globes", "This is very bad news for Teva, and as far as Yanai is concerned - he simply isn't suitable, because he hasn't got the experience needed. You can't appoint an outsider with no background in the generic drug industry, an industry that requires a high level of expertise, understanding of processes, and so on."
Hershkovitz gave to understand that Yanai's performance at MA Industries (Makhteshim Agan) (TASE: MAIN), where he was also an outside appointment, indicates his difficulty in adapting to a new environment. "It only takes a small mistake to wipe away millions of dollars and investment built up over years," he comments.
About Makov, Hershkovitz says, "Israel Makov is considered a genius at mergers and acquisitions. In his relations with people, Makov is inwardly aggressive, but with a front of a lovable grandfather."
Elah Alakalay of IBI also says the latest news is not good for Teva.
"Globes": And what's your view of Shlomo Yanai?
"He is well thought of at Makhteshim-Agan. The company's recent performance is not a result of his short tenure there. However, a company like Teva is a couple of orders of size larger than Makhteshim-Agan. Fortunately, Makov is leaving Teva in a superb position. The company is growing on all fronts. In his time, and under his leadership, the company has made an important transition to ethical drugs, a move that looks as though it will succeed.
Clal Finance Batucha analyst Yisca Erez told “Globes” that the decision was an unwelcome surprise for Teva. In her view, the rapid departure itself does not bode well for the future. Erez refused to comment on the selection of Shlomo Yanai as the next CEO, but said the appointment of someone from outside the company was not a positive sign, and indicated the company had not groomed an heir.
As for Makov, Erez said that he was considered a dominant CEO and a protégé of Eli Hurvitz. However, his term of office, which lasted four years, was brief.
Published by Globes [online], Israel business news - www.globes.co.il - on October 19, 2006
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