Israel’s Teva joins Procter & Gamble to create health joint venture
The world’s largest manufacturer of generic medicines, Israel’s Teva, is joining forces with Procter & Gamble to create PGT Healthcare. The unit will focus on offering more branded OTC products to more consumers in more parts of the world, focusing on the growing middle classes of emerging markets.
PGT Healthcare will have revenue of about $1.3 billion and has the potential to reach $4 billion by the end of the decade. The companies say their geographic footprints are complementary, with P&G’s strength in North America, Australia, India, Brazil and elsewhere, and Teva’s in Russia, Japan, Scandinavia and elsewhere. PGT will also focus on expanding in China, a relatively untapped market.
About 300 employees at P&G plants in the U.S. have been transferred to Teva, the companies said. They said that there were no layoffs as a result.