P&G Forms Consumer Health Care Partnership

The Procter & Gamble Company and Teva Pharmaceutical Industries Ltd.  announced the creation of a new partnership and joint venture in consumer health care. To be named PGT Healthcare, the joint venture will be headquartered in Geneva, Switzerland and will operate in essentially all markets outside of North America. The partnership between P&G and Teva will also develop new brands for the North American market.

PGT Healthcare, a new model in the industry, will focus on best-in-class development and state-of-the-art commercialization of branded OTC medicines. The partnership will bring together each company's complementary capabilities and existing over-the-counter (OTC) medicines. As a result, PGT Healthcare expects to accelerate growth for its parent companies and compete for leadership in the fast-growing, $200 billion consumer health care industry. The partnership will start from a solid base of approximately $1.3 billion in annual sales with the potential to grow to $4 billion in annual sales towards the end of the decade.

"This unique and transformational partnership creates one of the broadest and deepest OTC product portfolios and geographic footprints in the industry," says Shlomo Yanai, Teva's president and chief executive officer. "Each company's leading brands will experience tremendous growth by combining our strengths. We will be better together."

"P&G's partnership with Teva creates a combined set of capabilities that is unmatched in the industry, " adds Bob McDonald, chairman of the Board, president and chief executive officer of P&G. "Starting today our combined consumer health care business will now offer more branded OTC products to more consumers in more parts of the world."