Generics giant Teva Pharmaceutical Industries ($TEVA) and Procter & Gamble ($PG) announced the creation of their joint venture in consumer healthcare that they first discussed in March. PGT Healthcare, as the new JV will be called, will have its headquarters in Geneva, Switzerland and operate in essentially all markets outside North America. The companies hope to realize $4 billion in annual sales from the JV by the end of the decade.
PGT Healthcare will focus on the development and commercialization of branded OTC medicines. P&G has sold its OTC plants in Greensboro, NC, which produces Vicks, and in Phoenix, AZ, which produces Metamucil, in a move related to the formation of the JV, Reuters notes. Employees of both plants will be transferred to Teva.
In addition, P&G's Briain de Buitleir will be CEO of the JV, joined by Teva COO Eli Shani, according to Globes.
"This unique and transformational partnership creates one of the broadest and deepest OTC product portfolios and geographic footprints in the industry," said Shlomo Yanai, Teva's president and CEO. "Each company's leading brands will experience tremendous growth by combining our strengths. We will be better together." P&G and Teva also will also develop new brands for the North American market.
The news comes the same day P&G updated its guidance to reflect the JV, sale of its Pringles franchise and previously announced restructuring plans. P&G expects sales growth of 3% to 6% for fiscal year 2012. It also updated its FY 2012 outlook for all-in GAAP earnings per share to a range of $4.52 to $4.83, an increase from the previous range of $4.17 to $4.33.
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