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Exclusive Life Science Feature structures have taken on new shapes to execute the new strategies. "We globalize certain functions such as compliance, finance, legal, procurement, and R&D.; We've also globalized our whole specialty medicine franchise and capabilities, but we've stayed local where local matters, with local commercial capabilities in different countries, and we've stayed regional where it's important. The United States is one big market, but once you get to Europe, you're dealing with tens of different markets and many different kinds of players." Although Teva went through a long period of growth by acquisition, Levin says those days are over. "I am convinced the only sustainable way to grow is through internal growth — organic growth driven by great products. Targeted acquisitions can supplement that, say, to help build a portfolio in a key therapeutic area or to enter a new country, but they should not have the main role for growth in the future." The "constellation strategy" is the term coined for Teva's supplemented organic growth approach, as Levin explains. "We weave together transactions, small acquisitions, internal programs, and alliances with other companies to create a strong arena where we will see growth in our core area of respiratory or in our core area of CNS." Outsourcing has limits as well. Levin says the company aggressively searches for suppliers that satisfy two criteria: "They can do it better than us, and they can do it cheaper. But they must start with the better. I want high-quality outsourced capabilities across the board." He says the company does about $9 billion in procurement of outsourced programs per year, "and we've hired some of the best procurement people in the world to do it." Teva has brought in outside experts in manufacturing, especially in quality assurance and control. A GROUNDED STRATEGY Outside the company, opinions about Teva's future remain mixed. If you concentrate on the branded side of the industry or otherwise don't buy the argument that highvalue generics can share the playing field with patented originals, you'll keep looking for the company to pull a mega-blockbuster out of the hat. If your focus is generics, you have more to hope for in Teva. Analysts who have looked beyond the company's IP predicament or blockbuster potential generally give it high marks for basic soundness and steady growth, with a wealth of products and a thriving API business. If I were an analyst, I would render an opinion one way or the other. But I'm not. "Observers say we are focused on the right things, but want to see how the strategy unfolds," Levin adds. "In today's world, we will seek solutions that rely on telemedicine — smart devices, smart diagnostics — and integrate them into one total picture of care. The new team at Teva is aiming for cures to diseases not yet curable, solutions that make quality of life better, and therapies that leverage our understanding of genetics and can slow down the progression of diseases like Huntington's." A key growth driver will be the NTE strategy, which has shown early success but is not yet proven on the industrial scale that Teva is planning. Other major drivers include emerging business areas like consumer health and a stronger footprint in new markets. Levin is still relatively new to the company, and he is still proving himself as a CEO. He has not yet revealed his full strategy as the company adapts its portfolio to the changes in the healthcare market. One of the most interesting aspects of this story is the dramatic tension of a company in transition, largely into unknown territory and against fluctuating odds. Although that unexplored region may be the industry's most promising common ground, where the branded and generic businesses converge, it now seems wild, untamed, and excitingly unpredictable. October 2013 LifeScienceLeader.com 29