P&G, Teva Partner for Consumer Health Care
The Procter & Gamble Company (P&G) and Teva Pharmaceutical Industries Ltd. signs a master agreement to create a partnership in consumer health care by bringing together both companies' existing over-the-counter (OTC) medicines and complementary capabilities to accelerate growth.
This new business model combines P&G's strong brand-building, consumer-led innovation and go-to-market capabilities with Teva's broad geographic reach, its experience in R&D, regulatory and manufacturing, and its extensive portfolio of products.
"This unique partnership positions P&G and Teva to be a leading player in the consumer health care industry," says Bob McDonald, chairman of the board, president and chief executive officer of P&G. "This is a remarkable opportunity to accelerate growth for both companies' OTC businesses. Together, we will serve more consumers in more parts of the world, more completely, by increasing access to high quality, affordable over-the-counter medicines."
"We are extremely pleased to be joining forces with Procter & Gamble, the world leader in brand building and innovative go-to-market capabilities," says Shlomo Yanai, Teva's president and chief executive officer. "This partnership will create value by immediately expanding the number of channels and geographies in which each company's OTC products will be sold. Together, we will develop a new platform with the potential to reshape the entire global OTC market."
The partnership will include a joint venture that combines the companies' OTC businesses in all markets outside of North America. The markets included in the joint venture generated sales of more than $1 billion in 2010.
Teva will provide access to its portfolio of medicines and global R&D and manufacturing expertise and infrastructure. As part of the partnership, the companies intend for Teva to take global responsibility for manufacturing to supply the joint venture markets and P&G's existing North American business.
In addition, the partnership will exploit opportunities to develop Rx-to-OTC switches to create new trusted brands to be marketed worldwide, including in North America.
The transaction is expected to close in the fall of 2011 subject to receipt of required regulatory approvals.
This new business model combines P&G's strong brand-building, consumer-led innovation and go-to-market capabilities with Teva's broad geographic reach, its experience in R&D, regulatory and manufacturing, and its extensive portfolio of products.
"This unique partnership positions P&G and Teva to be a leading player in the consumer health care industry," says Bob McDonald, chairman of the board, president and chief executive officer of P&G. "This is a remarkable opportunity to accelerate growth for both companies' OTC businesses. Together, we will serve more consumers in more parts of the world, more completely, by increasing access to high quality, affordable over-the-counter medicines."
"We are extremely pleased to be joining forces with Procter & Gamble, the world leader in brand building and innovative go-to-market capabilities," says Shlomo Yanai, Teva's president and chief executive officer. "This partnership will create value by immediately expanding the number of channels and geographies in which each company's OTC products will be sold. Together, we will develop a new platform with the potential to reshape the entire global OTC market."
The partnership will include a joint venture that combines the companies' OTC businesses in all markets outside of North America. The markets included in the joint venture generated sales of more than $1 billion in 2010.
Teva will provide access to its portfolio of medicines and global R&D and manufacturing expertise and infrastructure. As part of the partnership, the companies intend for Teva to take global responsibility for manufacturing to supply the joint venture markets and P&G's existing North American business.
In addition, the partnership will exploit opportunities to develop Rx-to-OTC switches to create new trusted brands to be marketed worldwide, including in North America.
The transaction is expected to close in the fall of 2011 subject to receipt of required regulatory approvals.