Irish-based firm buys P&G’s global pharma arm

Under the terms of the agreement, Warner Chilcott will acquire P&G's portfolio of branded pharmaceutical products, including Asacol for ulcerative colitis, Actonel for osteoporosis, and the co-promotion rights to Enablex 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, which a few days ago redomesticated its public holding company from Bermuda to Ireland.

The transaction is expected to close by the end of 2009. On a preliminary, unaudited basis, P&G's pharmaceuticals business had revenues of approximately US$2.3bn and net income of approximately US$540m for the year ended June 30, 2009.

“The acquisition of the P&G pharmaceutical brands and employee talent is a transformational, strategic move for us,” said Roger Boissonneault, president and CEO of Warner Chilcott. “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.”

P&G said in a statement that it believes Warner Chilcott will be a “stronger and better investor” in its pharmaceutical assets because of the company's focus to grow its pharmaceuticals business versus P&G's decision to prioritise investments in its consumer healthcare businesses.

The sale will result in a one-time earnings increase for P&G of approximately US$1.4bn after-tax, or approximately US$0.44 per share.

For Warner Chilcott, the acquisition expands its presence in existing specialty pharmaceutical markets and provides access to new physician offices in 14 countries. In addition, Warner Chilcott will acquire P&G's pharmaceutical development capabilities and clinical pipeline, which is expected to broaden the company’s product portfolio in future years.