Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today announced that it has signed an agreement to sell its Sellersville, Pennsylvania facility to G&W Laboratories Inc. The sale is part of Teva's plan to streamline operations by reducing excess manufacturing capacity and reduce costs. No financial details about the sale were disclosed.
The sale includes all buildings, land, and equipment located at the site. Under the terms of the agreement, G&W will manufacture and supply products to Teva from the site until production of these products is transferred to other sites in Teva's network. G&W will also offer jobs to all employees at Sellersville.
The deal includes the sale to G&W of about 25 products from the Teva portfolio, which will be manufactured and sold by G&W in the US under the G&W label. The deal also grants G&W exclusive rights to sell up to two additional Teva products in the US under G&W's label, which Teva will continue to manufacture at its Zagreb, Croatia facility. The transaction is expected to close in March or April 2015, after the appropriate regulatory review and the satisfaction of certain closing conditions.
Teva Global Operations president and CEO Carlo de Notaristefani said, “Teva is managing its operations to create greater efficiencies and position the company for long-term growth and success. We have a qualified and dedicated team at Sellersville and are pleased that we were able to come to an agreement with G&W Laboratories that will enable them to continue working in their current community.”
The Sellersville site produces generic drugs with a portfolio of more than 50 products manufactured as solid dose forms (tablets and capsules), liquids, creams and ointments.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2015
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