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P&G Sheds Global Pharmaceuticals Business

The Procter & Gamble Company (P&G) agrees to sell its global pharmaceuticals business to Warner Chilcott for an up-front cash payment of $3.1 billion.

"This move enables us to focus singularly on winning in consumer health care - Personal Health Care, Oral Care and Feminine Care," says Bob McDonald, president and chief executive officer, P&G.

Under the terms of the agreement, Warner Chilcott, a specialty pharmaceuticals company, will acquire P&G's portfolio of branded pharmaceutical products, including Asacol HD (mesalamine) Delayed-Release Tablets for ulcerative colitis, Actonel (risedronate sodium) for osteoporosis, and the co-promotion rights to Enablex (darifenacin) for the treatment of overactive bladder, as well as P&G's prescription drug product pipeline and manufacturing facilities in Puerto Rico and Germany.

In addition, the majority of the 2,300 employees working on P&G's pharmaceuticals business are expected to transfer to Warner Chilcott. Both companies expect the transaction to close by the end of the 2009 calendar year, pending necessary regulatory approvals.

For Warner Chilcott, the acquisition expands its presence in existing specialty pharmaceutical markets and provides access to new physician offices in 14 countries. In addition, Warner Chilcott will acquire P&G's pharmaceutical development capabilities and clinical pipeline, which is expected to broaden Warner Chilcott's product portfolio in future years.

On a preliminary, unaudited basis, P&G's pharmaceuticals business had revenues of approximately $2.3 billion, and net income of approximately $540 million for the year ended June 30, 2009.
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