DRUGMAKER WARNER Chilcott, which last week completed its move to Ireland for tax purposes, has said it will buy Procter Gamble’s (PG) pharmaceuticals business for $3.1 billion (€2.2 billion).
The deal will immediately boost profits and produce tax advantages for years to come. Warner Chilcott’s shares were up 31.7 per cent following the announcement.
Warner Chilcott, a maker of contraceptives and female hormone replacement drugs, said PG – like itself – had manufacturing operations in Puerto Rico that conferred significant tax benefits.
PG’s branded drugs, including osteoporosis treatment Actonel and Enablex for overactive bladder, have annual sales of $2.3 billion. Warner Chilcott’s annual revenue is about $1 billion.
The deal is expected to close in November.
“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,” Warner Chilcott said in a statement.
PG failed to realise its ambition of becoming a major force in pharmaceuticals, although Actonel became one of the world’s top-selling treatments for prevention of fractures in post-menopausal women.
Cincinnati-based PG, best known for its vast array of household consumer products such as Crest toothpaste, said it was selling its branded medicines to “prioritise” investments in its consumer healthcare businesses. – (Reuters)
