Teva CEO Kåre Schultz has spent nearly two years working through major issues at the generics giant. Now, he’ll need to replace his CFO, as Michael McClellan is stepping down.
McClellan is resigning for personal reasons to be closer to his family, Teva said Wednesday. He’s expected to stay with the company through third-quarter earnings to ensure a smooth transition, but meanwhile, the company is searching for its next CFO.
The outgoing finance chief has served in the role since November 2017, when Schultz promoted him from an interim post he assumed in the wake of longtime CFO Eyal Desheh's exit. That year, before McClellan officially took over, Teva cut its guidance three times—twice by more than $1 billion.
Before that, McClellan served as the SVP and CFO of the company’s global specialty medicines outfit for two years. Earlier in his career, he spent nearly 20 years at Sanofi, working up to the role of U.S. CFO.
In Wednesday’s announcement, Schultz took a chance to thank McClellan, who helped preside over Teva's $3 billion cost-cutting drive, for his service during “such challenging times." For his part, McClellan said he’s “confident that Teva has the financial strength and capabilities to ensure its growth and success."
Teva’s new CFO will be coming in to help manage a challenged business. For years, the company has been cutting costs to deal with generic pricing struggles in the U.S. and generics to its multiple sclerosis med Copaxone. Things looked slightly better on Wednesday, when the drugmaker reported earnings better than analysts had expected.
In the second quarter, Teva posted revenues of $4.3 billion, beating consensus estimates by $90 million. Earnings per share of 60 cents also bested analyst estimates of 55 cents. Back in May, the company reported it was nearing its $3 billion cost-cutting goal.
Teva's stock has been hovering at or around 20-year lows amid all of its issues, including opioid litigation. The drugmaker is one of several involved in nationwide opioid litigation, and it has already agreed to an $85 million settlement in Oklahoma.