Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) has begun the integration of Barr Pharmaceuticals following the $9 billion acquisition. The integration will involve layoffs in several countries.
US and Croatia media report that Barr subsidiary Pliva, based in the Croatian capital of Zagreb, will lay off 790 employees. Barr acquired the company in 2006.
The "Croatian Times" quotes Pliva chairman Matko Bolanca as saying that the employees will receive "huge severance payments". Employees will less than 25 years seniority will receive €40,500 and employees with more than 25 years seniority will receive more than €50,000. Employees who have spent their entire working lives with the company will receive €270,000. Remaining employees will receive a pay hike.
Bolanca added that Pliva would remain a very important factor in the Croatian economy and added the dismissals were necessary to ensure a better future for the business.
The "Miami Herald" reports that Teva will lay off 300 employees at its Doral plant in the city by the end of 2010. "The South Florida Business Journal" says that Teva will close the Doral plant altogether. Teva acquired the plant as part of its $7.4 billion acquisition of Ivax Corporation in 2006. Part of Doral's activity was sold to Becton, Dickinson and Company (NYSE: BDX) in 2008.
Teva spokeswoman Denise Bradley told the "The South Florida Business Journal" that the layoffs would begin in the second or third quarter, and go through 2010. The former employees would be eligible for outplacement services and severance packages. She added that Teva has more than 100 employees in its remaining South Florida locations in Miami and Weston.
Teva is due to publish its financial report for the fourth quarter and full year of 2008 on February 17. The share rose 1% on Nasdaq yesterday to $42.41, but it fell 0.5% on the TASE to NIS 169.90.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2009
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