The recent announcement that Teva Pharmaceuticals will lay off roughly 2,400 employees–approximately 8% of its global workforce–is a significant development in a sector already under strain. This move aims to save $700 million by 2027 as Teva attempts to rebalance its role as both a generics manufacturer and a player in branded pharmaceuticals.

It reveals a deep challenge facing generics manufacturers in the U.S. and globally: the current market structure does not reward the cost-saving potential of generic or biosimilar drugs. Instead, it privileges the profit margins of expensive branded medications.

Teva’s layoffs aren’t just a corporate adjustment, they’re a symptom of a drug market that’s fundamentally out of balance. We need to rethink how we reward innovation, control costs and

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