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Executives

Kevin Mannix – Vice President, Head, Corporate Investor Relations

Dr. Jeremy Levin – President and CEO

Shlomo Yanai – President and CEO

Dr. Phillip Frost – Chairman

Eyal Desheh – Chief Financial Officer

Bill Marth – President and CEO, Teva Americas

Analysts

Jami Rubin – Goldman Sachs

Ken Cacciatore – Cowen And Company

John Boris – Citi

Chris Schott – JPMorgan

Ronny Gal – Bernstein

Shibani Malhotra – RBC Capital

Louise Chen – Colling Stewart

Randall Stanicky – Canaccord

Michael Faerm – Credit Suisse

David Buck – Buckingham Research Group

Gregg Gilbert – Bank of America

Marc Goodman – UBS

Corey Davis – Jefferies

David Risinger – Morgan Stanley

Michael Tong – Wells Forgo

Douglas Tsao – Barclays Capital

Tim Chiang – CRT Capital

Jason Gerberry – Leerink Swann

Teva Pharmaceutical Industries Limited (TEVA) Management Succession Transcript January 3, 2012 8:30 AM ET

Operator

Good day, ladies and gentlemen. And welcome to the Teva Announces Management Succession Conference Call. My name is Ann, and I will be your coordinator for today’s call. As a remainder, this conference is being recorded for replay purposes. At this time, all participants are in listen-only mode. (Operator Instructions)

We will be facilitating a question-and-answer session following the presentation. (Operator Instructions) Due to the limited time allowed, the company asks -- that you please ask only one question and if you have additional questions, please reenter the queue.

I would now like to turn the presentation over to Mr. Kevin Mannix, Vice President, Head of Corporate Investor Relations. Please proceed, sir.

Kevin Mannix

Thank you, Ann. Good morning and good afternoon, everyone. First, I want to wish everyone a very Happy New Year. We appreciate you joining us today for this important conference call. We wanted to use this as the first opportunity to introduce to you Dr. Jeremy Levin, who was named yesterday by Teva’s Board of Directors to succeed Shlomo Yanai as President and Chief Executive Officer of Teva following the transition period in the first half of the year.

We’re going to kick the call off with some brief comments from Teva’s Chairman, Dr. Phillip Frost then Shlomo and finally, some comments from Jeremy. We will then open the call for a very brief question-and-answer period.

We are joined also today by Eyal Desheh, Chief Financial Officer; and Bill Marth, President and CEO of Teva Americas. We expect the call will last approximately 45 minutes and would appreciate it if you could limit your questions to one and to yesterday’s announcement only. We will of course be available after the call to answer any additional questions.

Before we start, I’d like to remind you that our discussions during this conference may include forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ are discussed in Teva’s 2010 report on Form 20-F and in our report on Form 6-K.

I will now turn the call over to our Chairman, Dr. Phillip Frost. Dr. Frost if you would please?

Dr. Phillip Frost

Thank you and good morning. We appreciate you’re joining us to discuss the announcement Teva made yesterday that Shlomo Yanai has decided to step-down as the company’s CEO and he will be succeeded in May by Jeremy Levin, a highly regarded former Senior Executive at Bristol-Myers Squibb.

As you can imagine we regret that Shlomo has chosen to leave the company. But we respect his decision and recognize that he has other attractive opportunities he wishes to pursue. Shlomo made enormous contributions to Teva over the last five years, redefining its vision, focusing its forward-looking strategy, while demonstrating strong leadership that was recognized both internally and in the international arena.

I’m aware that Shlomo was considering several options for the future in both the public and private sectors. If he chooses a path of public service, I sincerely believe that the Israeli people would be well-served by such a visionary leader.

However, I’m sure that whatever he chooses, Shlomo will be successful. We thank him for his contributions at Teva and on behalf of the entire Board of Directors we wish him only the best. We’ve become personal friends over the last five years and I hope that we have the opportunity to work together again.

We are fortunate to have Jeremy Levin, an experienced and exceptionally talented executive to succeed Shlomo as Teva’s new leader. He has a deep understanding of the opportunities and challenges of the pharmaceutical industry and he has the skills required to continue the growth of a large global pharmaceutical business.

As a business leader and as a physician, he is passionately committed to bringing effective medicines to patients worldwide with a new emphasis on exploring the best of the important scientific developments wherever they may originate. I know that Jeremy shares are on struggling dedication to the Teva’s being an international company makes firmly in Israel.

This transition is the product of a professional succession plan that the Board and Shlomo have had in place for some time. We expect the change of leadership at Teva to be an orderly one and Shlomo, Jeremy and the Board are committed to working together to be sure as seamless and that Teva’s business continues to run smoothly during this period. Thank you.

Kevin Mannix

Shlomo?

Shlomo Yanai

Thank you, Phil, and Happy New Year everyone. I appreciate your joining us this morning for few brief remarks and the introduction of my successor Dr. Jeremy Levin, who many of you know. My retirement from Teva this coming May is based on the desire to open a new chapter in my life and I’m certain it is the right time for me to embark on new endeavors.

The decision comes after much thought and was closely coordinated with Teva’s Chairman of the Board, Dr. Phillip Frost and the company’s Board of Directors. This was not an easy decision for me.

I take enormous pride, in what the people of this wonderful organization had accomplished during my five years. Since 2007, we have transformed Teva from a successful mainly generics business into a diversified global pharmaceutical company with growth platforms in generics and blended pharmaceuticals products.

We have established an extensive global presence with leadership position in North and South America, Europe and Eastern Europe, and lately in Japan. Additionally, we established joint venture with Lonza in the biosimilars space and with P&G in the OTC arena creating additional growth engines for Teva’s future.

We’ve gone from an $8.4 billion company in 2006 to an anticipated $22 billion company in 2012 and during that same period, our profit more than doubled.

Teva’s growth and success are the result of long-term planning and successful execution of our plans. Teva will go forward with a strong scientific and manufacturing base and an organizational commitment that will ensure growth and prosperity long into the future.

I’m sure that Dr. Jeremy Levin is the right person to lead the company to new heights and to continue our long tradition of business growth and excellence. He and I will work closely together in the coming months to assure smooth and same -- and seamless transition.

I would like to personally thank Teva’s Chairman of the Board, Dr. Philip Frost for his support and encouragement, as well as his friendship. Serving as Teva’s CEO is a great and unique privilege. I have enjoyed this role although the past five years and I’m certain that Jeremy is the right person to lead this great company.

With that said, I would like to turn the call over to Jeremy.

Dr. Jeremy Levin

Good morning, ladies and gentlemen, and my colleague Shlomo Yanai in Israel and Dr. Phillip Frost here with me in New York. Terrific to be talking to you. I’d like to say a few remarks and then hand it back to Kevin in a moment for your questions.

Teva has a very long history of success established over many years. It’s been led by singular leaders Eli Hurvitz; Israel Makov; and now Shlomo Yanai. I think it’s true to say they’ve build one of the world’s great companies and I’m very privileged to follow in their footsteps. I’d like to reiterate what I’ve said before but I regret one thing that Eli Hurvitz, a man I have deeply admired over the years and respect is not here to watch this transition.

I want to thank the Board and shareholders for the confidence they’ve placed in me and I very much look forward to working with my colleagues and fellow Teva employees to build on the successes that these leaders have helped create.

I particularly want to thank Shlomo Yanai, Shlomo who as CEO of Teva I’ve come to know like and respect. I’m going to work very closely with Shlomo over the period of transition and we will affect a smooth and effective changeover.

I think many of you know Teva is a unique company. Teva is an Israeli company. And most importantly it’s a company which through its actions of its management and employees around the world helped millions of patients daily. From my perspective and I’m sure from yours, there can be no more powerful demonstration of intent and mission than that which is demonstrated in the actions of those who work within this enterprise.

We will continue to deliver on this mission. The technologies, intellects, creativities and business strengths, which have been used in the past to improve the lives of health of people every day of the year, we’ll continue to do so.

I’d like to use this occasion to congratulate my colleagues in the company around the world, Japan, North and South America, Europe and of course, in Israel, they have really -- you have really accomplished a great deal.

The product line is unparalleled, the manufacturing base is powerful and they have helped bring important and affordable medicines to patients around the globe. They have built the company to a very impressive position.

From here on forward, together, we are going to leverage our strengths and look to generate growth beyond that which has been accomplished. We will continue to grow, build and expand our very special company.

At its core, superior motivation, innovation and excellence in execution will help propel us into the future. Most importantly as regards our investor base, you have my commitment to fully engage you in the mission to take our company to another level of excellence. I’m confident that with your help and understanding we’ll make that aspiration a reality.

And with that in hand, I’d like to hand over to Kevin.

Kevin Mannix

Thank you everyone. And if you could queue that would be great. We’ll start taking questions.

Question-and-Answer Session

Operator

Okay. (Operator Instructions) Our first question comes from the line of Jami Rubin with Goldman Sachs. Please proceed.

Jami Rubin – Goldman Sachs

Thank you. That’s Jami Rubin. Jeremy congratulations and congratulations to you Phil and Shlomo on your new adventures, really delighted about your new opportunity. Jeremy, I’m just wondering if you can just kind of step back and talk to us about, what attracted you to Teva just given its diverse assets across the globe?

And what you’re going to do that is different from the current management team, as Shlomo already mentioned, he already laid and placed the strategy to diversify the company away from Copaxone. But given your background which is pharma, my suspicion would be that your focus would be on accelerating the growth of the branded business. But I’m really curious to know what you plan to do that’s different that will take Teva to the next level? Thanks.

Dr. Jeremy Levin

Good morning, Jami.

Jami Rubin – Goldman Sachs

Good morning.

Dr. Jeremy Levin

Good to hear your voice.

Jami Rubin – Goldman Sachs

Thanks.

Dr. Jeremy Levin

Let me break this into parts. First of all, I want to take the opportunity to think through the company over the next few months and there, during that period of time, I don’t really want to make any comments about what we will or might be doing with the company.

I will say, however, my deep interest in Teva has extended over a number of years. And as we’ve watched the global markets change, as we’ve watched the way payers and others are addressing the needs of patients and changing the way that we as an industry need to provide medicines to those patients. So I have evolved a thinking about what it will take to be the most successful types of company in the world.

I believe that Teva has all the elements within it to build on. The strength that had been built here in the past are those strengths that, I think are those that you can apply to make a highly, highly successful company in the future, as it has been in the past, but facing all of the kinds of headwinds that many of the other companies have faced.

As you know, Jami, I have a very deep philosophy in that medicines are medicines, it doesn’t matter whether they are branded or generics. The key question is, can you make them affordable, can you provide them to patients and I believe, the elements that are within Teva provide exactly for that. I hope that answers your question.

Jami Rubin – Goldman Sachs

Thank you, Jeremy, and congratulations, again.

Operator

And our next question comes from the line of Ken Cacciatore with Cowen And Company. Please proceed.

Ken Cacciatore – Cowen And Company

Thanks very much. Congratulations Shlomo and congratulations Jeremy. Jeremy, just one quick question for you. What do you think Teva brings as a partner that’s different from branded pharma from your perspective? Anything unique that you see as you compete hopefully for alliances and partnerships, anything that you can describe that is different, unique that Teva brings? Thanks.

Dr. Jeremy Levin

I think, give me a little time and I’ll start to think that through and provide you the answers that you need on that one. But it certainly has significant strengths that I think we can build on and we’ll build on and we intend to do that.

Operator

And our next question comes from the line of John Boris with Citi. Please proceed.

John Boris – Citi

Thanks for taking the question. Congratulations Phil on implementing the transition and to Shlomo and Jeremy on the new opportunities here. Question largely for Jeremy, you spent largely the majority of your carrier on the innovative side of the business. You certainly mentioned that you wanted to leverage the strengths of Teva on that innovative side. Can you contrast some of the experiences that you had over your career on the innovation side and how you plan on infusing what you have on that side into Teva going forward?

Dr. Jeremy Levin

John, I want to just correct a misimpression I may have given. I wasn’t talking about the strengths on the branded side. I was talking about the strengths of the company as a whole. It’s no longer an -- a consideration in my mind that a medicine is a branded or a generic.

I think it’s very important for everybody in the industry to understand, we’ve entered into a new age that is an age where medicines which were terrific 10 years ago and were branded and now are generic are no longer not good medicines, indeed they remain good medicines, the question is how do you get them to patients.

And Teva has built an impressive set of capabilities which include geographic reach, which include manufacturing base, which include the management and team who are motivated under the concept of brining good medicines at an affordable price to patients around the world.

These are the strengths that I’m interested in leveraging that, as a physician I’ve treated patients with both generic and also branded medicines and I’ve never asked the question which is what.

John Boris – Citi

Okay.

Operator

And our next question comes from the line of Chris Schott with JPMorgan. Please proceed.

Chris Schott – JPMorgan

Great. Thanks very much. Just a question for Jeremy, based on our conversations with investors, the street has a very mixed view on Teva’s branded pipeline. Can you share your thoughts on the company’s pipeline assets and as you conduct your diligence on Teva, as what excited you the most within this branded portfolio? Thanks.

Dr. Jeremy Levin

Hello, Chris.

Chris Schott – JPMorgan

Good morning.

Dr. Jeremy Levin

I think I prepared to answer that question, once if I had a chance to do a deep dive and to think it through with the team and so for the moment I’d leave that in advance.

Kevin Mannix

And next question, please?

Operator

And our next question comes from the line of Ronny Gal with Bernstein. Please proceed.

Ronny Gal – Bernstein

Good morning. And congratulations to both you and exiting CEO on your choices. Could I ask a quick question for you Jeremy, when you spoke with the members of the Board from their perspective what were the priorities for you in your first year, if you kind of, obviously, at some point with regarding this conversation it becomes a discussion about what the company is to accomplish in the next year or two. Can you just give us an impression what is pre-occupy in Board right now?

Dr. Jeremy Levin

I think, we have the Chairman of the Board, yeah and if it’s okay with you, I’d like to hand that question to him.

Dr. Phillip Frost

Well, thank you for the question. I think, you must think of Teva as a highly diversified company and Jeremy will have the responsibility after doing his deep dive not only on the branded side but also on the generic side. And to decide what there is to be done all around to take Teva to another level.

I personally convinced that there is a lot yet to be done and I’m hoping that aside from growth through acquisitions which has been important, maybe important in the future for Teva that there will be a lot of low hanging fruit that has yet to be picked that will provide for good sources of growth and that Jeremy will be there to be the harvester.

Ronny Gal – Bernstein

Thank you.

Operator

And our next question comes from the line of Shibani Malhotra with RBC Capital. Please proceed.

Shibani Malhotra – RBC Capital

Hi. Thanks for taking my question and congratulation Shlomo and Jeremy. Jeremy, this question is for you. I guess in response to Jami’s question earlier you talked about some of the headwinds facing pharmaceuticals in general and your thoughts on what it would take for a company to be successful in this environment?

Based on your experience with Novartis and Bristol, and on your due diligence that you’ve done regarding the generic space and Teva, can you just give us some more specifics on how you see the landscape for generics and branded companies over the next couple of years and where -- and what you think a successful company will look like over this time period? Thanks.

Dr. Jeremy Levin

Good morning, Shibani. Nice to hear your voice as well. Shibani, this is a long and complex discussion, I’m happy to have with you and others over time. But there is nothing miraculous in what I’ll say in this. We all know that we are facing, that both, all medical markets are facing headwinds particularly in Europe and America in terms of pricing, access, this is nothing new.

I think where the opportunities lies, how best to address the growth markets, which is the term I use for others that often call them emerging markets. How do you deal with those? Many companies have used different strategies. And so, as yet we will await how exactly we will address those with Teva.

But I think to go back to Phil’s specific points, the base that has been built in this company provide for a lot of opportunity to deal with the kinds of pressures that we will be facing with increasing pricing, divergence of markets and from my perspective those are the kinds of things that we will be spending our time.

And having a well-balanced portfolio allows you both the opportunity to take advantage where such exists for penetration of branded medicines and at the same time, lead into markets using generic products.

So, I think this is a, it’s a – there is nothing new for us to say about this market but Teva does have certain specific attributes related to its history which allow one to build and to deal with those.

Shibani Malhotra – RBC Capital

Okay. Thank you.

Operator

And our next question comes from the line of Louise Chen with Colling Stewart. Please proceed.

Louise Chen – Colling Stewart

Hi. Thanks for taking my question. My question is, do you think of Teva as a growth company or a more mature company that should distribute more cash to its shareholders. And along those lines, do you have any thoughts on increasing dividends to shareholders of Teva?

Dr. Jeremy Levin

I think, I’ll hand that to Phil.

Dr. Phillip Frost

In my mind there doesn’t have to be an either or in that situation. I like to think of any company with which I’m connected as capable of important growth while returning as much as possible to the shareholders in a variety of ways including increased dividends. And Teva certainly has the capability to do just that.

I think that for the foreseeable future, I think it’s capable of good growth, I think that the possibility to return more to the shareholders during this period is definitely there and I’m enthusiastic and excited about what the -- what’s before us both in the immediate future and long-term.

Louise Chen – Colling Stewart

Thank you.

Operator

And our next question comes from the line of Randall Stanicky with Canaccord. Please proceed.

Randall Stanicky – Canaccord

Great. Thanks and my congratulations to everybody as well. Just to be a little more specific, given the update around the buyback and cap allocations from a couple of weeks ago, should we be viewing that $3 billion buyback over the next three years as unchanged and should we expect any revisits to your capital deployment in general for the next several months? Thanks.

Dr. Phillip Frost

I think that what we want to do is continue with the plans as announced and once Jeremy is in place and has done his deep dives on various levels to have an opportunity to revisit the question.

Randall Stanicky – Canaccord

Okay. Great. Thank you.

Operator

And our next question comes from the line of Michael Faerm with Credit Suisse. Please proceed.

Michael Faerm – Credit Suisse

Good morning. Thanks for taking the question. My question is for Dr. Frost. What did you see as the most important skills for a new CEO of Teva that guided you in your search?

Dr. Phillip Frost

Teva has been blessed with excellent management throughout its history. However, most of the managers, the CEOs have had superb general managerial strengths. And what I was looking for was to add another dimension to that and that is to have a CEO with a scientific base to have -- to provide a fresh look at Teva as to the course it must take for the next period.

Michael Faerm – Credit Suisse

Thank you.

Operator

And our next question comes from the line of David Buck with Buckingham Research Group. Please proceed.

David Buck – Buckingham Research Group

Yeah. Thanks for taking the question. My congratulations as well. Two quick questions for Dr. Levin. Can you talk about what you saw in your diligence as the biggest challenge for Teva going forward? And can you talk about what diligence you’ve had on the ability to meet financial goals and the financial strengths of the company? Thanks.

Dr. Jeremy Levin

David, good morning. I think it’s again too early for me to say what the challenges will be until I spend time deeply in the company. I have of course looked at the company or I would say close to 15, 16 maybe even up to 20 years, actually, I’ve been close to it and had the pleasure of meeting some of its original founders.

So with regard to the financial situation, you have the information in front of you as to where it stands. I believe, you have the projections in front of you. I have had the same and I will come back with any -- anything else that I have to say about it later on, once I take over as CEO.

David Buck – Buckingham Research Group

Okay. Thank you.

Operator

And our next question comes from the line of Gregg Gilbert with Bank of America. Please proceed.

Gregg Gilbert – Bank of America

Thanks. Good morning, Jeremy. Regardless of what you learn and when you learn during your deep dive, would you like the shareholders and potential shareholders to know about you now other than the fact that you engage with them? Thanks.

Dr. Jeremy Levin

That is a really great question and thank you for it. First of all, you need to understand that I bring to this a tremendous energy. That’s number one, I have over the years understood what it takes to build organizations and to revitalize them at times and at other times in fact to build on the strength.

So from a perspective of the shareholders understand that that focus and attention not only to detail, to building teams, to growing management, to greater transparency, those are all core philosophies that I bring to this.

And additionally, I look to having a high degree of transparency with the shareholders and that’s why, when I talk about engagement I do mean that, I mean engagements so that we as an organization and how we’re thinking will be very clear to you if it isn’t clear already.

So, about myself, this also is an important occasion for you to understand. I do believe that for a company to be successful in the future, to be a major company, to be a company that really does drive to a new generation of delivery of medicine, you need to be a major global company.

And so, as I look at Teva and as I look to the future, consider how one of the things that I will be looking at it, it is with a global eye. While, Teva is an Israeli company, we will be looking at this as a global eye whether it would be BGX or GGX, or innovation, we will be there.

Operator

And our next question comes from the line of Marc Goodman with UBS. Please proceed.

Marc Goodman – UBS

Yeah. Good morning. Two things first, regarding the guidance specifically, did you see the guidance before you join the firm, did you sign-off on it yet or was your comments basically that’s yet to be determined in the guidance that was provided, you’ll decide when to update?

And then second thing is, can you just give us your overall kind of big picture view of the emerging markets, specifically China and India, and how aggressive you think Teva needs to be in those markets? Thanks

Kevin Mannix

Marc, it’s a Kevin. Thanks for the question. I think with the first part regarding the guidance, I think we’re going to focus on other areas today and I’ll let Jeremy handle emerging markets question.

Dr. Jeremy Levin

Let me just say again, I’m always puzzled why people call them emerging markets, it either means that we’ve forgotten them in the past and are suddenly arriving there or indeed they’re creeping out from somewhere I’m not sure.

Let me be clear, these are growth markets. These are markets to be addressed thoughtfully. They are markets which are becoming increasingly sophisticated. They are markets whether they be in Brazil, China, India, all over the growth economies that we see. It is very important for every company in the industry to understand how they will penetrate these markets.

Now some companies have different strategies, others which might be guided by their history. But you need to take a look and take stock of what the company has in its abilities and how it matches closely in the near-term, mid-term and long-term with a particular country that is wish to deal with. Once you have done that, you then will need to set in place the appropriate strategy, management and implementation to deal with it.

I don’t think that this is something that should wait for any long-term. I think companies need to be deeply thoughtful as they go into, rushing into them is a mistake, thoughtful approach guided by appropriate investment and a very careful strategy is the right way to go here.

So, I’m very, very interested and regard this is an important contributory leg to building a global company and this particular approach not just to Europe, not just to America, but in fact to the other growth economies around the world, is something that I’ll be looking very carefully at.

Marc Goodman – UBS

Okay.

Operator

And our next question comes from the line of Corey Davis with Jefferies. Please proceed.

Corey Davis – Jefferies

Hi. Good morning and hello Jeremy. I think, part of Teva’s historical success has come from its low risk spending discipline, that comes from the generic company mindset yet, some would say that to be a truly innovative company, it’s exactly the opposite, you got to be willing to spend a lot and take risks in order to develop novel medicines. So, number one, do you agree with that and two, are these two opposite business models something that you believe can co-exist in one company?

Dr. Jeremy Levin

Good morning, Corey. First of all, let me agree with part of your question and then disagree with the other part if I may. I think that when we always -- when we look at large scale primary care, late stage development, high risk programs. I think you are very, you are very correct in saying that these are extraordinarily expensive and very high investment risk type programs, which quite frankly some companies have embarked on in the past without the tremendous amount of thought.

But to invest in that is in fact innovation comes in many levels and if you ask the question what does the patient actually need, what does the market actually need often the innovation that’s required is relatively inexpensive to accomplish.

And so when one looks at R&D, I think you also considered less a single bucket with rather one which is focused on different attributes to how you might deliver a medicine, how you might provide a medicine, how you might manufacture a medicine rather than simply saying we are looking for a large primary care molecule.

So from what many prospective investment in R&D can deliver tremendous returns when one looks at relatively straightforward but important innovations that can occur and provide protection for the company that’s doing it.

Operator

And our next question comes from the line of David Risinger with Morgan Stanley. Please proceed.

David Risinger – Morgan Stanley

Thanks very much and congratulations to you both Shlomo and Jeremy. I wanted both of you to please comment on the dependence of Teva on Copaxone and U.S. generics. The reason for the question is that Shlomo spoke to the press and mentioned that Teva must overcome the dependence on Copaxone and U.S. generics.

So if you could provide a framework for the contribution of those assets to Teva? And Jeremy, if you could talk about overcoming that dependence that would be much appreciated? Thank you.

Kevin Mannix

David, it’s Kevin. If it’s all right, I think what we would like to do is let Jeremy gets settled in and if you’d like to ask another question that’d be fine.

David Risinger – Morgan Stanley

Okay. I guess the question then would be to Shlomo, could you discuss the dependence on those assets, since that was discussed with the press and just frame those contributions so that we understand the challenges that you see for Teva and for Jeremy to tackle in his new role?

Shlomo Yanai

Thank you, David. And what I would like to first remind you that we only will say that basically the challenge that we’re having here, that we have a great product, a great medicine, which is luckily Teva got it, which is Copaxone, but like any great medicine in certain point of time there is new technology and we should prepare ourselves for that day.

And therefore from strategic point of view, we took the diversification at the time of the answer that we would like to answer this challenge, which by the way is not only in Copaxone, any kind of dependency on one product, on one market deserve the same attitude, the same thinking how to balance it or how to reduce the dependency on one product and one market.

So back to Copaxone, we made a strategic decision that we would like to diversify our specialty pharmaceutical business and that was the rationale behind growing to more therapeutical areas and mainly the acquisition of Cephalon, which basically got that into a more broader portfolio and better future pipeline.

So the dependency of Copaxone is already reduced as we speak from, I’m talking about the overall Copaxone sales of our specialty pharmaceutical division from almost 62% to less than 40%. And the goal is to reduce the Copaxone sales by 2014, 2015 into roughly speaking 20%, which is around $2 billion for that time as business projected to be there around $9 billion and more billion dollars.

This is basically what I would answer on that. The questions regarding the number of figures, we provided them in previous times and there is no any specific that I would like to add at that point of time.

David Risinger – Morgan Stanley

Thank you.

Operator

And our next question comes from the line of Michael Tong with Wells Forgo. Please proceed.

Michael Tong – Wells Forgo

Hi. Good morning. Question for Jeremy. On a couple of occasions on this call you’ve talked about, there is no need to really differentiate between branded pharmaceuticals or generic pharmaceuticals. So my question to you is, how do you plan on molding these two approaches together into one umbrella that fits under Teva?

Dr. Jeremy Levin

Good morning, Michael. Again, I think for any specifics on this, I’m going to wait until we are -- once the transition has taken place. But in general let me say that the question is more about your customer base and the delivery of the medicines through that -- to those customer bases and I intent to lay that out when I --I’m ready to do so, at this stat I am not.

What I would say to you is that Teva has a vast array of different medicines and has the global footprint to deliver them in different local markets and there’ll be different strategies for these different markets.

So I think you need to look at Teva’s having multiple capabilities, a tremendous portfolio of different medicines, global footprint and the ability to provide different medicines in different markets. So for the moment, that’s where I’ll land.

Operator

And our next question comes from the line of Douglas Tsao with Barclays Capital. Please proceed.

Douglas Tsao – Barclays Capital

Hi. Good morning. Thanks for taking the question. Dr. Frost, I was just hoping you could provide a little perspective and thought on the timeline for the search for the new CEO, as well as the process of looking for candidates both internal, as well as, okay, as well as, obviously external?

Dr. Phillip Frost

I’m sorry, I didn’t understand the last part of your question?

Douglas Tsao – Barclays Capital

Just in terms of, were you looking exclusively for external candidates for the CEO role or did you consider internal candidates as well?

Dr. Phillip Frost

I see. Thank you. No. Of course, we considered internal candidates as well and there were several people that we did consider. But all in all, Jeremy in our minds was perfectly suited for the challenges that by ahead of us and we were very pleased that Jeremy accepted the position and has agreed to take charge of facing these challenges.

Douglas Tsao – Barclays Capital

Just could you provide some perspective on how long was the search -- how long has this process been ongoing?

Dr. Phillip Frost

It began within the last year but obviously picked up steam during the recent months.

Douglas Tsao – Barclays Capital

Okay. Great. Thank you very much.

Operator

And your next question comes from the line of Tim Chiang with CRT Capital. Please proceed.

Tim Chiang – CRT Capital

Hi. Thanks. Congrats Dr. Frost, congrats Dr. Levin. Just really two questions. First and foremost Dr. Levin, how long do you think the strategic review will take. I know, this is probably first couple of days on the job, but just sort of a ballpark in terms of how long do you think this process will take soup to nuts?

Dr. Jeremy Levin

Tim, I didn’t say a strategic review. I specifically use the word deep dive, deep dive requires that I immerse myself completely in the company that I have the opportunity to visit the sites, meet the management, understand my role and how I can best facilitate the changes that I think may or may not be needed at this stage. One can get an impression of a company from the outside and for me to take over and be as effective as I wish to be starting in May I’ll immerse myself completely in the company.

So we will be coming back to you after an appropriate forum as we usually do starting in May. In the mean time, as I’ve said the -- this is a very, very interesting and great opportunity for me to do a deep dive and to work with Shlomo on the transition plan.

Tim Chiang – CRT Capital

Okay. Great. Thanks very much.

Kevin Mannix

And we’ll take one more.

Operator

And our last question today is from the line of Jason Gerberry with Leerink Swann. Please proceed.

Jason Gerberry – Leerink Swann

Thanks guys. All my questions have been answered.

Operator

Ladies and gentlemen, that concludes today’s question-and-answer session. I would now like to turn the call back to Mr. Kevin Mannix for closing remarks.

Kevin Mannix

Thank you, Ann. On behalf of Dr. Frost, the entire management team here at Teva and Jeremy, want to thank you for joining us today. If you’d like to listen to a replay, of course you can get all the information from our press release that was issued or you can call Kristin at 215-641-6904. Thank you again everybody and have a great week.

Operator

Ladies and gentlemen, we thank you for your participation in today’s conference. This concludes the presentation. And you may now disconnect. Have a good day.

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