Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and The Procter & Gamble Company (NYSE: PG) (P&G) are creating a joint venture that will combine their over-the-counter medicine business in all markets outside of North America. The markets included in the joint venture generated sales of more than $1 billion in 2010.
Teva will provide access to its portfolio of medicines and global R&D and manufacturing expertise and infrastructure. As part of the partnership, the companies intend for Teva to take global responsibility for manufacturing to supply the joint venture markets and P&G’s existing North American business.
The business model combines P&G’s strong brand-building, consumer-led innovation and go-to-market capabilities with Teva’s broad geographic reach, its experience in R&D, regulatory and manufacturing and its extensive portfolio of products.
Teva president and CEO Shlomo Yanai said, “This partnership will create value by immediately expanding the number of channels and geographies in which each company’s OTC products will be sold. Together, we will develop a new platform with the potential to reshape the entire global OTC market.”
Teva shares are up 2.8% in late morning trading in New York.
Published by Globes [online], Israel business news - www.globes-online.com - on March 24, 2011
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