Yitzhak Peterburg, interim president and chief executive at Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) recently stated that the health care industry is facing a huge disruption during his interview with CNBC.
Peterburg was at the annual World Economic Forum in Dalian when he was interviewed by CNBC. He stated that the global healthcare industry has been facing a huge disruption but also added that digital disruption, in this case, is a good thing. This is because it provides an opportunity for pharmaceutical companies and health care in general to provide better services to customers.
“I am a very great believer that we are now in a huge disruption within the health-care (industry), and I think it will affect our industry. For me, the digital reform, or whatever we see, is a huge enabler,” Peterburg told CNBC.
Peterburg’s statement highlights the fact that Teva is optimistic about the direction that the industry is going and that the firm is looking forward to new opportunities. Teva is considered the biggest manufacturer of generic drugs with its main focus being treatments for multiple sclerosis and other pipeline drugs for central nervous system disorders.
The CEO’s statement also points to the fact that major companies in the technology industry are coming up with ways to disrupt the health sector. This is mainly through the use of technologies such as artificial intelligence and big data analytics among others. CNBC had previously reported that Apple Inc. (NASDAQ:AAPL) has been consulting with industry groups, hospitals, and developers about creating a feature that brings health data to iPhone users. Online retail giant Amazon.com, Inc. (NASDAQ:AMZN) is also reportedly trying to figure out how to get into the lucrative pharmacy market.
Peterburg told CNBC that companies in the pharmaceutical industry should come up with strategies for bracing such disruptions. This will help them to avoid being caught off guard and even missing out on emerging opportunities. He also stated that he views some of the tech companies causing disruption as competition for the pharmaceutical companies, thus the need for the health care industry to adapt quickly.
Teva stock closed the latest trading session on Wednesday at $32.83.