Teva Pharmaceutical

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- Strategy of inorganic growth through Mergers and Acquisitions which allowed him entry successfully in various markets worldwide (Exhibit 6), because of that TEVA is known for its ability to manage its resources and capabilities in search of his goal of creating a global brand .

- TEVA has maintained a rigorously low-cost culture and achieved greater scale benefits in its supply chain than any of its competitors. The supply chain started with active pharmaceutical ingredient (API) production (Backward Integration), a step which many of TEVA’s competitors at least partially outsourced, often to TEVA.

- Product diversity is one of the most important key to success for TEVA.

- Entered to the innovative drug market, by 2006, TEVA's strong relationship academic Institutions with yielded 150 to 180 proposals for new drugs per year.

- Rigorous execution, filing ANDA applications earlier and with fewer revisions than its competitors.

The Big Challenge for TEVA

Due to the decrease in market share of approximately 30% from January to June 2006 and the present conditions of high competition market, TEVA is in the need to determine which are the clear directions to enable it to ensure the constant expansion, growth and consolidation as the main company in the pharmaceutical industry.

Recommendations

In order to continue a pattern of success TEVA need to focus on the following factors:

- Increase leadership in key markets (US and international markets). Through key acquisitions that will allow enter other markets or diversify its p[pic 7]roduct portfolio.

- Focus on maintaining a leadership position in the use of Paragraph IVs.

- Should continue its innovative program in a focused and controlled manner. Due to the high competition that develops in the generics industry, acquisitions no longer guarantee success, and organic growth through effective R&D will become an important growth driver for the company.

- Betting on the new wave of technology in generics and try to gain competitive advantage in the biogenerics at lower cost and higher value.

Thank you very much for consider my recommendations.

Sincerely,

Mauricio Carabali

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