Warner Chilcott to acquire P&G's pharmaceuticals business

Irish healthcare company Warner Chilcott is to acquire Procter & Gamble's portfolio of branded pharmaceutical products, prescription drug pipeline and manufacturing facilities in Puerto Rico and Germany for US$3.1bn (£1.9bn).

The deal will give Warner Chilcott, a specialist in women's healthcare and dermatology products, P&G's osteoporosis treatment Actonel (risedronate sodium) and ulcerative colitis drug Asacol HD (mesalamine), together with the co-promotion rights to Enablex (darifenacin) for the treatment of overactive bladder.

The P&G operation has 2,300 employees, the majority of whom will transfer to Warner Chilcott. Both companies expect the deal to close by the end of 2009, pending regulatory approvals.

Warner Chilcott's chief executive Roger Boissonneault said the acquisition was a "major milestone" with P&G being a "strong fit from a product perspective".

"The acquisition transforms Warner Chilcott into a well-regarded, global provider of quality therapeutic brands," he added.

The company gains access to doctors'; surgeries in 14 countries and will expand from women's healthcare into the gastroenterology and urology sectors.

Boissonneault described P&G's pharmaceutical business as a "fully functioning, first class operation" and said the deal would be "accretive out of the box, not in several years".

P&G's pharmaceuticals business had sales of US$2.3bn and a net income of US$540m to 30 June 2009.

"This move enables us to focus singularly on winning in consumer healthcare - personal health care, oral care and feminine care," said Bob McDonald, president and chief executive officer of Procter & Gamble. Brands include Crest, Oral B Tampax and Gillette.

Warner Chalcott's main products are Doryx tablets to control acne, the Loestrin 24 contraceptive pill and menopause treatment Estrace.