Innovation to Meet and Exceed Patient Needs

To find new ways to make healthcare available to and affordable for all, in 2014 Teva spent more than $1 billion on research and development.

In generics alone, we invested $517 million, an increase of five percent from 2013, to enhance the most affordable and accessible drugs in our product line. We combine our broad scope of core capabilities—technologies, systems and processes—to create generic and specialty medicines and over-the-counter products. We maintain a robust pipeline of products, leveraging the best of what we know as we pursue further discoveries and customize existing treatments.

In addition to our broad portfolio of medicines, we are enhancing our commitment to comprehensive patient care by investing in other promising companies and future healthcare technologies. In 2014, we reinforced our leadership position in CNS disorders with the acquisitions of NuPathe Inc. and Labrys Biologics Inc. in the U.S. These additions
expanded our portfolio of medicines and delivery technologies for treating CNS disorders and opened the door to a strong and novel migraine prevention and treatment franchise within our CNS portfolio. And through our recently established partnership in Sanara Ventures, we are helping to advance innovation in medical devices and mobile health.

Improving Existing Drugs

NTEs are among Teva’s most promising innovations. We are uniquely positioned to apply our development of specialty and generics medicines to deliver powerful solutions to known healthcare issues, drawing on more than 250 formulation researchers in house, more than 1,000 molecules in our portfolio, and more than five distinct, complex, drug-delivery technologies.

The NTE products in our pipeline include medicines for respiratory, pain management and CNS disorders. Many of our NTEs are in advanced stages of development, such as a longer-acting, ready-to-use treatment for schizophrenia that is subcutaneously injected and easier to administer than current treatments and a new portfolio of HIV medication that will enable patients to take fewer pills, resulting in a more cost-effective treatment. By improving the ways patients can take medicines, we help make their treatments less burdensome.

We continue to invest in development, manufacturing and distribution of innovative pharmaceutical solutions, such as NTEs, to reduce the burden of disease. From 2015 to 2019, we expect to launch 27 new products.

Tailoring Treatment to Match Genetic Makeup

Owing to hereditary factors or to lifestyle, not everyone reacts in the same way to a given drug. As with all matters that affect patient outcomes, we are keen to understand this field of personalized medicine. Further exploring this field and using other predictive methodologies are part of our commitment to improve healthcare outcomes for individuals and entire communities, while saving time and money through effective treatment.

Recently, for example, we used predictive genetic markers to guide the choice of available therapies for more than 2,000 patients with Multiple Sclerosis (MS). Our results showed a significantly higher rate of positive response to treatment and reduced risk of relapse. For the first time, our technology allows physicians to predict response to an MS drug via a genetic test. In Israel, our pharmacogenomics research among certain defined populations that characteristically have a high rate of marriage within their own closed communities allowed us to identify specific genetic modifications among members of these communities. Our findings will enable us to develop targeted treatments that can prevent serious diseases in these populations and others with similar social infrastructures.

Propelling The Next Generation of Health Startups

In early 2015, we created Sanara Ventures, a strategic joint venture partnership with Philips Healthcare and in collaboration with the Office of the Chief Scientist in Israel. Together, over eight years, the health innovation launchpad has committed to investing approximately $26 million and will support up to 80 early-stage technology companies as they develop and introduce innovative medical devices and mobile health services or products. The key areas of focus are disease management throughout the care cycle; telemedicine, sensors and remote monitoring; medical imaging; drug delivery and drug-device combinations; healthcare IT and mobile health.

Sanara Ventures supports the selected companies with financing, business mentoring and technology. To date, more than 400 companies have applied to become part of the innovation hub, and the Sanara team has met with more than 55 early-stage companies with promising potential. Four of these have already been selected to move to the next stage while several others are under review.