Teva to sell US manufacturing plant, 25 drugs to G&W Laboratories

Teva announced Monday a deal to sell its Sellersville, Pennsylvania manufacturing facility to G&W Laboratories for an undisclosed sum as part of the Israeli drugmaker's previously disclosed cost reduction programme. The deal, which is expected to close in March or April, also includes around 25 of Teva's products that will be manufactured and sold by G&W in the US.

Under the agreed terms, G&W will manufacture and supply products from the site to Teva until the transaction is completed. In addition, Teva has granted G&W exclusive rights to sell up to two of its products under the G&W label in the US. G&W has also agreed to offer employment to all staff at the site, which currently produces generic drugs with a portfolio of more than 50 products manufactured as solid dose forms, liquids, creams and ointments.

"Teva is managing its operations to create greater efficiencies and position the company for long-term growth and success," commented Teva global operations CEO Carlo de Notaristefani. As part of the cost-reduction programme, which is designed to save approximately $2 billion by the end of 2017, the Israeli drugmaker is improving manufacturing efficiency and reducing excess capacity. The company also said in 2013 that as part of the overhaul it would reduce its global workforce by about 10 percent, or around 5000 employees.

For related analysis, see ViewPoints: Will an eagle-eyed Teva be back on the M&A trail soon?

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