Watson sells Rugby OTC product trademark and assets to Harvard Drug

The sale facilitates Harvard Drug to market, sell and distribute OTC and nicotine gum products sold under the Rugby trademark and also allows Watson to retain manufacturing, selling and distribution rights to all store-branded nicotine gum products and other non-Rugby OTC products in its portfolio.

In addition to retaining the non-Rugby OTC products, Watson will retain ownership for nicotine gum Abbreviated New Drug Applications and nicotine gum manufacturing facilities.

As part of the transaction, Watson will manufacture and supply nicotine gum products sold in the Rugby and Major labels while Harvard Drug will manage and maintain the Rugby business within the major pharmaceuticals division.

Watson president and CEO Paul Bisaro said, "I am confident that Major, with its leadership position as a marketer of OTC products, will be more strategically positioned to maximize the value of the long-known and respected Rugby name."

The Harvard Drug Group CEO Terry Haas said Rugby provides value for pharma-care providers and consumers.

”The combination of Major and Rugby will create supply chain efficiencies and enhance service levels," Haas added.

The Rugby OTC portfolio consists of more than 250 SKUs of cough and cold, allergy, pain relief, nausea relief, nicotine gum, vitamin and nutritional supplement products, sold by healthcare outlets across the US.

The transaction has also been approved by the US Federal Trade Commission under requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976.