Teva, P&G Agree to End Consumer Healthcare JVBy
Teva Pharmaceutical Industries and the Procter & Gamble Company have agreed to terminate the PGT Healthcare partnership that the two companies established in 2011 to market over-the-counter (OTC) medicines.
The separation is planned to take effect July 1, 2018, subject to receipt of applicable regulatory approvals. No significant (material) net financial transfer between Teva and P&G will result from the dissolution, according to the company
PGT Healthcare has a presence in over 50 countries, mainly in Europe and Asia, using brands such as Vick’s and Ratiopharm. “However after nearly seven years working together, the companies concluded that their priorities and strategies are no longer closely aligned and each company will take back its own brand and product assets to re-establish independent OTC businesses,” according to an April 19, 2018 company statement by Teva.
The termination of Teva’s and P&G’s consumer healthcare joint venture follows a decision by P&G to acquire Merck KGaA’s consumer healthcare business. In April 2018, P&G agreed to acquire Merck KGaA’s consumer health business for approximately EUR 3.4 billion ($4.2 billion).
The separation is not expected to have a material effect (impact) on Teva’s 2018 financial outlook. Teva will merge its OTC interests returning from PGT with a portfolio of OTC assets acquired in 2016 via its acquisition of the generics business of Allergan. In 2017, the combined sales from Teva’s PGT OTC products and Teva non-PGT OTC products were approximately $1 billion.
Source: Teva Pharmaceutical Industries