CASE STUDY 6 Teva Pharmaceutical: Expanding its command centre from tariffs to broader policy issues At Teva Pharmaceutical, geopolitical disruptions – from the threat of tariffs to most favoured nation (MFN) pricing rules and regional instability – have become recurring features. These dynamics are already shaping how the company evaluates pricing strategy, market presence, cost structures, capital allocation and even its innovation pipeline. “We are much more detailed because of the potential consequences,” notes the US Executive Vice-President Commercial. Responsibility for geopolitical processing sits within Global Government Affairs. The core team is embedded in a broader network of 30–50 professionals across finance, legal, operations and regional teams. In April 2025, Teva Pharmaceutical created a Tariff and Policy Command Centre. Structured as a war room, convening every week, it brings together leaders from multiple functions and has a direct line to the CEO and CFO. As the US CFO puts it, “This isn’t just tariffs, it’s now about policy, intellectual property, MFN and long-term structural change.” When tariff risks emerged in 2025, the company identified a critical oncology drug manufactured in India as vulnerable. The command centre moved quickly, building up inventories in the US ahead of potential duties. The decision ensured supply continuity for cancer patients in the region Source: Interviews, company analysis We already have the right skills in the company: strategy, marketing, policy advocacy, deal-making, risk management. The real challenge is connecting them to see the full picture. Head of Strategy at a mining company 2.4 Staffing the function Assembling the right talent is a critical step in building geopolitical muscle. Experience, credibility and analytical capability determine whether teams can bridge geopolitics and business. When building geopolitical muscle, companies must decide first who will lead the function: –Internal promotion: Internal leaders bring deep knowledge of the company’s operations, fast integration and high internal credibility. Their established networks make it easier to embed geopolitics into daily decisions. However, the available talent pool can be shallow, and career paths for geopolitical roles remain unclear. –External hire: A new hire brings geopolitical expertise, external networks and fresh perspectives. Senior external profiles, often from other companies in sectors heavily exposed to geopolitics but also from government, diplomacy or international organizations, can add visibility and legitimacy to the function. However, they must be able to quickly understand the company. Translating geopolitical complexity into commercial impact requires business fluency that many external hires must develop. Across interviews, executives emphasized that the ultimate responsibility for leading a geopolitical team is best placed in an executive with long-standing Building Geopolitical Muscle: How Companies Turn Insights into Strategic Advantage 19

Building Geopolitical Muscle 2026