CINCINNATI — The Procter & Gamble Co. here announced yesterday it will sell its global pharmaceuticals business to Warner Chilcott plc., Ardee, Ireland, for $3.1 billion in cash.
Under the terms of the agreement, Warner Chilcott, will acquire P&G's portfolio of branded pharmaceutical products, including Asacol HD (mesalamine) Delayed-Release Tablets for ulcerative colitis, Actonel (risedronate sodium) for osteoporosis, and the co-promotion rights to Enablex (darifenacin) for the treatment of overactive bladder, as well as P&G's prescription drug product pipeline and manufacturing facilities in Puerto Rico and Germany. In addition, the majority of the 2,300 employees working on P&G's pharmaceuticals business are expected to transfer to Warner Chilcott.
Both companies expect the transaction to close by the end of the 2009 calendar year, pending necessary regulatory approvals. "This move enables us to focus singularly on winning in consumer health care - personal health care, oral care and feminine care," said Bob McDonald, president and chief executive officer of Procter & Gamble, in a press statement.
According to Roger Boissonneault, president and chief executive officer of Warner Chilcott, the acquisition will expand Warner Chilcott's presence in women's healthcare, establish the company in the urology market in advance of the anticipated launch of erectile dysfunction treatments, and add gastroenterology therapies to its product portfolio.
The sale of P&G's pharmaceuticals business to Warner Chilcott will result in a one-time earnings increase for P&G of approximately $1.4 billion after-tax, or approximately $0.44 per share. P&G also said it expects EPS dilution in the range of $0.10 to $0.12 per share in fiscal year 2010 due to the lost earnings from the business and stranded overhead costs, assuming the transaction will close on November 1, 2009.
P&G's pharmaceuticals business had revenues of approximately $2.3 billion, and net income of approximately $540 million for the year ended June 30, 2009.
Read More of Today's Headlines