PA to NJ: Teva accepts $40m tax savings to relocate US HQ

Teva says relocating US headquarters from Pennsylvania to New Jersey is part of its “significant restructuring plan.”

Teva Pharmaceutical Industries has accepted a $40m (€34m) offer in tax savings incentives, over a period of ten years, from New Jersey’s economic development authority (EDA).

According to the Israeli multinational, the restructure aims to unify and simplify the company, improve efficiencies, and reduce costs.

The firm will retain a ‘significant’ presence in Pennsylvania, a spokesperson told us: While many positions will move to New Jersey, Teva’s plan during the next two years still maintains employment for approximately 500-600 highly-skilled life science employees at Teva’s R&D facility in West Chester, Pennsylvania.”

“An additional 100+ employees will continue to support Teva’s operations and distribution services in NE Pennsylvania.  As the restructuring process, market dynamics and natural attrition are ongoing; we cannot confirm final and definitive numbers,” the spokesperson added.

The announcement follows on from the generic drugmaker’s significant restructuring plan, instigated in 2017 to help restore the firm’s financial security.

In August 2017, the firm confirmed the closure of 15 sites, including its active pharmaceutical ingredient (API) plant in Netanya, Israel, and four months later, announced a $3bn cost saving plan to reduce its workforce by 14,000, restructure its generics portfolio and consolidate its facility network.