P&G Sells Off Pharmaceuticals Business26 Aug, 2009 Response This Week
CINCINNATI and ARDEE, Ireland – The Procter & Gamble Co. (P&G) finalized a sale of its global pharmaceuticals business to Warner Chilcott for an up-front cash payment of $3.1 billion. Under the agreement, Warner Chilcott will acquire all of P&G’s branded pharmaceutical products as well as its prescription drug manufacturing facilities in Puerto Rico and Germany.
Through the agreement, 2,300 P&G employees are expected to transfer to Warner Chilcott by the end of 2009, pending regulatory approvals.
“The acquisition of the P&G pharmaceutical brands and employee talent is a transformational strategic move for us,” says Roger Boissonneault, president and CEO of Warner Chilcott. “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.”
P&G believes Warner Chilcott will be a better investor in P&G’s pharmaceutical brands because of its focus on the business, leaving P&G to focus on consumer health care.
“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 CEO of P&G.
In an audit, P&G’s pharmaceutical business had revenues of $2.3 billion and a net income of $540 million, for the year ending June 30 – in large part due to its billion-dollar brand, osteoporosis drug Actonel. According to TNS Media Intelligence, Actonel received $79 million in measured media support last year (handled by Omnicom Group’s DDB Worldwide).