Former general Yanai steers big Teva deal

By Tova Cohen and Steven Scheer

TEL AVIV (Reuters) - In landing the biggest acquisition ever by an Israeli company, Teva Pharmaceutical Industries Chief Executive Shlomo Yanai (TEVA.O: Quote, Profile, Research, Stock Buzz) applied the long-term strategic thinking of a seasoned military general.

On Friday, Teva announced plans to acquire New Jersey-based rival Barr Pharmaceuticals Inc (BRL.N: Quote, Profile, Research, Stock Buzz) for $7.46 billion, surpassing Teva's $7.4 billion purchase of U.S. rival Ivax two years ago, when Yanai's predecessor Israel Makov was at the helm of Teva.

"We have very strict parameters regarding the economics when we deal with transactions," Yanai said in an interview.

"Barr fit our strategy almost in any given pillar," Yanai added. "Almost in any parameter in examining our strategy, Barr has a substantial contribution."

Yanai, 56, became president and chief executive of Teva (TEVA.TA: Quote, Profile, Research, Stock Buzz), Israel's biggest company, in March 2007.

The appointment of a tight-lipped outsider to succeed Makov was greeted by surprise in the business community as Teva had always promoted from within the company.

Prior to joining Teva, Yanai was president and CEO of Makhteshim-Agan Industries (MAIN.TA: Quote, Profile, Research, Stock Buzz), the world's biggest maker of generic chemicals, from 2003 until 2006.

But most of his career -- 32 years -- was spent in Israel's army, where he achieved the rank of major general, the highest rank below chief of staff.

Yanai was the head of the Israeli security delegation to numerous Middle East peace talks in the United States, including Camp David.

Yanai said landing the Barr deal was not a case of a relative newcomer wanting to make a splash.

"I am in my 50s, and I already have gone through a lot in my previous life," Yanai said. "I fully believe that I should do what is needed to be done for my stakeholders or shareholders."

While Teva is mainly known as a generic drug maker, it also has branded drugs, such as Copaxone, the leading treatment for multiple sclerosis, and Azilect, for Parkinson's disease.

In February, Yanai set an ambitious goal of doubling Teva's revenue to $20 billion by 2012. The company said its size and economies of scale would give it an advantage.

Use of low-cost generics will be a critical factor for helping control health-care budgets all over the world, Yanai said.

"From our point of view, the drug industry is facing a major change in the coming years and the notion of generics is going to play a major role," Yanai said.  Continued...