Teva commits to OTC as it winds up alliance

Teva still sees OTC medicines as a “growing and long-term key business”, despite announcing plans with Procter & Gamble (P&G) to end the pair’s six-year ‘PGT Healthcare’ OTC joint venture, according to the Israeli firm. The decision – made after “the companies concluded that their priorities and strategies are no longer closely aligned” – comes as Teva is executing a major structural overhaul instigated by chief executive officer Kåre Schultz (Generics bulletin, 1 December 2017, page 1), and is “not expected to have a material impact on Teva’s 2018 financial outlook”.

At the same time, P&G has signed a deal to acquire Merck KGaA’s Consumer Health business for C3.4 billion (US$4.2 billion). According to P&G, the acquisition “replaces and improves...