Warner Chilcott buys P&G pharma for $3.1 billion
pharmafile | August 25, 2009 | News story | Research and Development, Sales and Marketing | MA, P&G, Warner Chilcott
Specialist pharma company Warner Chilcott is to buy Procter & Gamble's pharmaceutical division for $3.1 billion, turning it into a mid-size player within the sector.
Procter & Gamble is a giant conglomerate, with annual sales of $83.5 billion and a brand portfolio ranging from food products to toiletries, beauty care and healthcare.
P&G's biggest pharma brand is its blockbuster osteoporosis drug Actonel, but its US patent expiry in 2013 and the toughness of the prescriptions medicines market has convinced the company to exit the sector.
Now Warner Chilcott has stepped into to buy up the whole division, including its R&D and most of its 2,300 employees will be retained.
P&G's pharma division had revenues of around $2.3 billion in the year ending June 2009, with income of approximately $540 million.
The acquisition will represent a major step up for Warner Chilcott, which was set to earn around $1 billion in revenues this year.
"The acquisition of the P&G pharmaceutical brands and employee talent is a transformational, strategic move for us," said Roger Boissonneault, president and chief executive 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."
Bob McDonald, president and chief executive 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."
McDonald extended special thanks to P&G's pharmaceuticals employees. "These men and women have built a large and profitable global business which has improved millions of lives," he said. "Their welfare was a key consideration in the choice of a buyer. We are deeply grateful to them and are glad they'll be able to continue this work as part of another great company."
P&G said it believes Warner Chilcott will be a stronger and better investor in the pharmaceutical division because of Warner Chilcott's focus to grow its pharmaceuticals business, while P&G has decided to concentrate on its consumer health care businesses.
The acquisition expands Warner Chilcott's presence in existing specialty pharmaceutical markets and provides access to new therapy areas in 14 countries. The deal includes P&G's pharmaceutical development capabilities and clinical pipeline, which will be part of Warner Chilcott's product portfolio in future years.
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