Warner Chilcott To Buy P&G Drug Unit

Warner Chilcott has proposed to acquire Procter & Gamble’s prescription-drug business. Warner Chilcott is likely to pay $3 billion for the business unit.

Wall Street Journal has reported that JPMorgan Chase & Co. and Bank of America would provide $4 billion in financing, including $1 billion to refinance existing Warner Chilcott debt.

Tom Millikin, a spokesman for the Cincinnati-based company said to Wall Street Journal: “P&G does not provide comment on rumor or speculation. We have said publicly that we will look at all options to maximize the shareholder value of our pharmaceuticals business. This includes continued operation of our strong and profitable business, as well as a divestiture of some or all of our pharma assets.”

P&G’s pharmaceutical business is focused on women’s health, musculoskeletal disorders and gastrointestinal problems. The company’s Actonel, an osteoporosis drug, and Asacol, a colitis treatment, are approved by FDA.