Procter & Gamble and Warner Chilcott have sealed an agreement for the sale of P&G’s global pharmaceuticals business to Warner Chilcott for a cash payment of $3.1 billion.
Under the terms of the agreement, Warner Chilcott will acquire P&G’s portfolio of branded pharmaceutical products, including Asacol HD Delayed-Release Tablets for ulcerative colitis, Actonel for osteoporosis. It will also acquire co-promotion rights to Enablex for the treatment of overactive bladder, as well as P&G’s prescription drug product pipeline and manufacturing facilities in Puerto Rico and Germany.
According to the agreement, majority of the 2,300 employees working on P&G’s pharmaceuticals business are expected to transfer to Warner Chilcott. Both the companies expect the transaction to close by the end of the 2009 calendar year, pending necessary regulatory approvals.
P&G said that it believes Warner Chilcott will be a stronger and better investor in its pharmaceutical assets, brands and capabilities because of Warner Chilcott’s focus to grow its pharmaceuticals business, versus P&G’s decision to prioritize investments on its consumer health care businesses.
Reportedly, the sale of P&G’s pharmaceuticals business to Warner Chilcott for a price of $3.1 billion will result in a one-time earnings increase for P&G of approximately $1.4 billion after-tax, or approximately $0.44 per share.
Roger Boissonneault, president and CEO of Warner Chilcott, said: The acquisition of the P&G pharmaceutical brands and employee talent is a transformational, strategic move for us. The acquisition transforms Warner Chilcott into a global pharmaceutical company, expands our presence in women’s healthcare, establishes us in the urology market in advance of the anticipated launch of our erectile dysfunction treatments, and adds gastroenterology therapies to our product portfolio.
Bob McDonald, president and CEO of Procter & Gamble, said: This move enables us to focus singularly on winning in consumer health care – Personal Health Care, Oral Care and Feminine Care.