Generic drugmaker Teva Pharmaceutical Industries Ltd. has decided to stop research and development in a number of areas, including oncology and women's health, as part of efforts to cut costs.

The company said that it would maintain its current commercial presence but would no longer conduct R&D in these fields. Instead, Teva will focus on market-ready or close-to-market assets in order to maximize sustainable profitability.

This decision follows a strategic review of core therapeutic areas for the company. The review included an extensive evaluation of Teva's current and future capabilities to address unmet patient needs, as well as the competitive landscape, barriers to entry and profitability.

The core therapeutic areas on which Teva will focus in the future are Central Nervous System (including multiple sclerosis, neurodegenerative diseases and pain) and Respiratory (including asthma and chronic obstructive pulmonary disease).

Teva plans to discontinue or sell off 14 pipeline projects. R&D costs for these projects would amount to more than $150 million in 2015 and in excess of $200 million in 2016 and in 2017.

The cost savings made as a result of the new strategy will be directed to increasing resources in Teva's core therapeutic areas, thereby enhancing R&D productivity without increasing the overall R&D budget.

"The decision announced today demonstrates progress in our efforts to solidify the foundation of the company, drive organic growth and ensure that we are pursuing the highest potential opportunities, both for patients and for the company," commented Teva's president and CEO, Erez Vigodman.

"It will allow us to more efficiently and effectively focus and build leadership in key disease areas and deliver sustainable long-term value," he added.