Last update - 00:00 18/10/2006
Teva shares fall 3% following news CEO Makov will retire
By TheMarker staff
Shares in Teva Pharmaceuticals (TASE, Nasdaq: TEVA) fell by 3% on the Tel Aviv Stock Exchange on news that CEO Israel Makov will be retiring in 2007.
The Tel Aviv Stock Exchange has halted trading in Teva stock to give investors time to digest the news.
The reasons behind Makov's sudden resignation after ten years, four of which he spent as CEO, are still not clear.
He will, however, continue to work with Teva as a senior strategic advisor to the company for the next two years, the company said.
He will be replaced by Shlomo Yanai, currently chief executive of Makhteshim Agan Industries (TASE: MAIN). Yanai will join the company as president and CEO-designate during the first part of 2007.
"Today's announcement is part of our planned succession strategy," Eli Horovitz, Teva's board chairman, said in a statement.
During Makov's tenure as CEO, Teva's sales increased over four-fold to approximately $8.5 billion and its adjusted net income increased six-fold, Horovitz said.