25 August 2009

Warner Chilcott deals for P&G unit

Specialty drugmaker, Warner Chilcott Ltd., will pay $3 billion to pick up Procter & Gamble Co’s prescription drug business.

For Warner Chicot, the acquisition should triple the company’s revenue and expand its product line. The P&G drug portfolio generated $2.3 billion in annual sales.

P&G’s prescription drugs include osteoporosis treatment Atonal and overactive bladder treatment Enable.

“The acquisition of the P&G pharmaceutical brand and employee talent is a transformational, strategic move for us,” said Roger Boissonneault, president and chief executive of Warner Chilcott. The company, which had revenue of $938 million in 2008, specializes in oral contraceptives and dermatology products. Its U.S. headquarters are in Rockaway, N.J.

“This move enables us to focus singularly on winning in consumer health care—personal health care, oral care, and feminine care,” said P&G Chief Executive Robert A. McDonald.

In December, P&G said it would end new investments in pharmaceuticals, consider divesting its healthcare brands, and focus on its health business on over-the-counter products such as Pepto Bismol and Prilosec.

P&G hired Goldman Sachs in February to help sell its prescription brands or find other ways to exit the business.

In April, P&G Chairman A.G. Lafley said pressure from generic products was one motivation to sell the business.

The deal should close by the end of the year, officials said.

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