Teva and the Procter & Gamble Company Have Agreed to Terminate the PGT Healthcare Partnership
April 19 2018 - 7:00AM
Business Wire
Teva Pharmaceutical Industries [NYSE and TASE: TEVA] has
announced that Teva and the Procter & Gamble Company [NYSE: PG]
have agreed to terminate the PGT Healthcare partnership that the
two companies established in 2011 to market OTC (Over The Counter)
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.
PGT Healthcare has grown into a significant presence in over 50
countries, mainly in Europe and Asia, using market-leading 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.
“We have significantly benefited from the PGT partnership and we
are parting on good terms”, said Sven Dethlefs, Executive Vice
President Global Marketing & Portfolio. “We will continue to
build our OTC business, based on trusted brands, as a growing and
long-term key business for Teva. It is a step in our wider process
to bring integration and focus, and it enables us to better
leverage synergies between our OTC and Generics businesses. The
move creates a solid platform for a strong Teva OTC business, using
the assets returning from PGT and the OTC brands acquired primarily
through Actavis in 2016.”
P&G President, Global Personal Health Care, Tom Finn,
commented: “The PGT Healthcare joint venture was highly successful
but the decision to dissolve is in the best interest of both
parties. We thank the Teva employees who have partnered with us and
we wish Teva well as they operate their independent OTC business in
the future.”
The separation is not expected to have a material effect
(impact) on Teva’s 2018 financial outlook. As mentioned, the
company will merge its OTC interests returning from PGT with a
portfolio of OTC assets acquired in 2016 via the Actavis
acquisition. In 2017, the combined sales from Teva’s PGT OTC
products and Teva non-PGT OTC products were approximately $1
billion.
About TevaTeva Pharmaceutical Industries Ltd. (NYSE and
TASE: TEVA) is a leading global pharmaceutical company that
delivers high-quality, patient-centric healthcare solutions used by
millions of patients every day. Headquartered in Israel, Teva is
the world’s largest generic medicines producer, leveraging its
portfolio of more than 1,800 molecules to produce a wide range of
generic products in nearly every therapeutic area. In specialty
medicines, Teva has a world-leading position in innovative
treatments for disorders of the central nervous system, including
pain, as well as a strong portfolio of respiratory products. Teva
integrates its generics and specialty capabilities in its global
research and development division to create new ways of addressing
unmet patient needs by combining drug development capabilities with
devices, services and technologies. Teva's net revenues in 2017
were $22.4 billion. For more information, visit
www.tevapharm.com.
Cautionary Note Regarding Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
regarding the launch and potential benefits of Teva's generic
version of Lialda®, which are based on management’s current beliefs
and expectations and are subject to substantial risks and
uncertainties, both known and unknown, that could cause our future
results, performance or achievements to differ significantly from
that expressed or implied by such forward-looking statements.
Important factors that could cause or contribute to such
differences include risks relating to:
- commercial success of Teva's generic
version of mesalamine, including due to a potential launch of an
Authorized Generic version;
- our generics medicines business,
including: that we are substantially more dependent on this
business, with its significant attendant risks, following our
acquisition of Allergan plc’s worldwide generic pharmaceuticals
business (“Actavis Generics”); our ability to realize the
anticipated benefits of the acquisition (and any delay in realizing
those benefits) or difficulties in integrating Actavis Generics;
the increase in the number of competitors targeting generic
opportunities and seeking U.S. market exclusivity for generic
versions of significant products; price erosion relating to our
generic products, both from competing products and as a result of
increased governmental pricing pressures; and our ability to take
advantage of high-value biosimilar opportunities;
- our business and operations in general,
including: uncertainties relating to the potential benefits and
success of our new organizational structure and recent senior
management changes; the potential success and our ability to
effectively execute a restructuring plan; our ability to develop
and commercialize additional pharmaceutical products; manufacturing
or quality control problems, which may damage our reputation for
quality production and require costly remediation; interruptions in
our supply chain; disruptions of our or third party information
technology systems or breaches of our data security; the failure to
recruit or retain key personnel; the restructuring of our
manufacturing network, including potential related labor unrest;
the impact of continuing consolidation of our distributors and
customers; variations in patent laws that may adversely affect our
ability to manufacture our products; adverse effects of political
or economic instability, major hostilities or terrorism on our
significant worldwide operations; and our ability to successfully
bid for suitable acquisition targets or licensing opportunities, or
to consummate and integrate acquisitions; and
- compliance, regulatory and litigation
matters, including: costs and delays resulting from the extensive
governmental regulation to which we are subject; the effects of
reforms in healthcare regulation and reductions in pharmaceutical
pricing, reimbursement and coverage; potential additional adverse
consequences following our resolution with the U.S. government of
our FCPA investigation; governmental investigations into sales and
marketing practices; potential liability for sales of generic
products prior to a final resolution of outstanding patent
litigation; product liability claims; increased government scrutiny
of our patent settlement agreements; failure to comply with
complex Medicare and Medicaid reporting and payment
obligations; and environmental risks.
and other factors discussed in our Annual Report on Form 20-F
for the year ended December 31, 2016 (“Annual Report”)
and in our other filings with the U.S. Securities and Exchange
Commission (the “SEC”). Forward-looking statements speak only
as of the date on which they are made, and we assume no obligation
to update or revise any forward-looking statements or other
information contained herein, whether as a result of new
information, future events or otherwise. You are cautioned not to
rely on these forward-looking statements. You are advised to
consult any additional disclosures we make in our reports to
the SEC on Form 6-K, as well as the cautionary discussion of
risks and uncertainties under “Risk Factors” in our Annual Report.
These are factors that we believe could cause our actual results to
differ materially from expected results. Other factors besides
those listed could also materially and adversely affect us. This
discussion is provided as permitted by the Private Securities
Litigation Reform Act of 1995.
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version on businesswire.com: https://www.businesswire.com/news/home/20180419005536/en/
IR ContactsUnited StatesKevin C. Mannix,
215-591-8912Ran Meir, 215-591-3033IsraelTomer Amitai, 972
(3) 926 7656orPR ContactsUnited StatesElizabeth
DeLuca, (267) 468-4329IsraelYonatan Beker, 972 (54) 888
5898
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