As the Israeli firm presses on with attempts to cut back on costs and streamline operations, Teva has announced plans to relocate its North American headquarters from its current base in Philadelphia to Parsippany-Troy Hills, New Jersey, attracted by the state’s promise of $40 million in tax breaks.
As part of the move, Teva will be expanding its existing NJ site to 350,000 square feet and will transfer and create of 843 jobs, while 232 and positions will be retained. The company has said that it expects the relocation to generate benefits of $247 million over 20 years.
The move to a more centralised location and maximise efficiency comes under the leadership of CEO Kåre Schultz, who has outlined plans to make $3 billion in savings in an attempt to steer the firm to calmer waters.
“While Teva will retain a significant presence in Pennsylvania, reducing the number of sites supports our drive to continue to improve productivity and efficiencies,” said Brendan O’Grady, Executive Vice President and Head of North America Commercial. “We’re pleased to expand our presence in New Jersey, having closer proximity to a vibrant business hub and a dynamic life sciences environment—all while increasing jobs and preserving many existing roles.”
In its wider cost-cutting measures across the state, Teva spokesperson Elizabeth DeLuca confirmed that around 500-600 “highly-skilled life science employees” would be retained at its West Chester R&D facility, alongside another “100 plus” to support operations and distribution, but could not confirm what would become of the over 1,300 workers it employs in the region.
New Jersey Governor Phil Murphy also remarked on the move: “The presence of global life sciences companies like Teva Pharmaceuticals is critical to New Jersey’s ability to strengthen a thriving innovation ecosystem. We are thrilled to expand our welcome to Teva, and its more than 1,000 employees, in the Garden State – the place to be for the world’s most competitive life sciences companies.”