from the November 2006 issue

Teva Pharmaceutical CEO Makov Retiring

The world's largest generic drug maker Teva Pharmaceutical Industries Ltd. said that President and Chief Executive Israel Makov will retire next year as part of a planned succession move.

Makov, 67, will be replaced by Shlomo Yanai, 55, who will join the company in 2007.

Yanai previously served as president and CEO of Makhteshim Agan Industries Ltd., which manufactures and distributes generic crop protection chemicals.

Makov, who has been with Teva for 11 years, will remain with the Israel-based company as an adviser for two years and will help with the transition process.

There has been consierable speculation surrounding the announcement.

Eli Hurwitz, chairman of Teva stated that the move is part of a planned succession strategy. "This is just the first opportunity of many that we will have to thank Israel Makov for the role he has played in dramatically increasing the scope and scale of Teva's business and solidifying our position as the world's leading generic pharmaceutical company. During his tenure as CEO, Teva's sales will have increased over four-fold, to approximately $8.5 billion; its adjusted net income will have increased approximately six-fold; and the average annual return to investors has been 24%. Israel has considerably expanded and enhanced our balanced business model, both in terms of our lines of business, including our broad generic portfolio, our strength in active pharmaceutical ingredients, and our increasingly significant branded and innovative product businesses; and in terms of our geographic reach which now extends beyond our historic core markets of North America and Western Europe to markets with extraordinary growth opportunities such as Central and Eastern Europe, Russia, and Latin America."

Rumors have been circulating that Makov did not succeed in raising trhe price of the Teva shares and did not maintain a close relationship with Wall Street analysts.

In 1984 Israel Makov headed InterPharm, which was Israel's first biotech company. He took the company to Wall Street. InterPharm was eventually acquired by Serono.

Reprinted from the Israel High-Tech & Investment Report November 2006

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