Teva Pharmaceutical Industries Ltd. (NYSE,TASE:TEVA) has signed an agreement to sell its Sellersville, Pennsylvania facility to G&W Laboratories, Inc., salvaging 280 employees’ jobs and further streamlining its own operations by reducing excess manufacturing capacity. The sale is part of the Company’s previously announced cost reduction program.
Dr. Carlo de Notaristefani, President and CEO of Teva Global Operations, stated,
“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 currently produces more than 50 generic drugs manufactured as tablets, capsules, liquids, creams and ointments. 25 of the products will be manufactured and sold by G&W in the United States under the G&W name. The transaction will also give G&W exclusive rights to sell up to two additional Teva products in the U.S. under G&W’s label, which Teva will continue to manufacture at its Croatia facility.
All buildings, land, and equipment located at the site are included in the sale, estimated at $50 Million. 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, and G&W will offer employment to all employees currently located at Sellersville.
Dr. Aaron Greenblatt, Executive Vice President and Chief Commercial Officer of G&W Laboratories, Inc., stated,
“G&W is pleased to have reached an agreement with Teva to acquire the Sellersville facility, obtain rights to more than 25 products, and employ a highly dedicated and experienced work force. Under the agreement, G&W will provide a number of products to Teva that will continue to be manufactured at the acquired site. The acquisition of the Sellersville facility and products strengthens our long-term relationship with Teva, and fits with our strategy of acquiring platforms from which we can grow the business and expand our product and dosage offering.”
The transaction is expected to close in March or April 2015, after the appropriate regulatory review and the satisfaction of certain closing conditions.
Teva Pharmaceutical Industries Ltd. (NYSE and TASE:TEVA) is a leading global pharmaceutical company that delivers high-quality, patient-centric healthcare solutions to millions of patients every day. Headquartered in Jerusalem, Teva is the world’s largest generic medicines producer, leveraging its portfolio of more than 1,000 molecules to produce a wide range of generic products in nearly every therapeutic area. In specialty medicines, Teva has a world-leading position in innovative treatments for disorders of the central nervous system, including pain, as well as a strong portfolio of respiratory products. Teva integrates its generics and specialty capabilities in its global research and development division to create new ways of addressing unmet patient needs by combining drug development capabilities with devices, services and technologies. Teva’s net revenues in 2014 amounted to $20.3 billion.
G&W Laboratories, Inc., based in South Plainfield, NJ, is a family owned business which was founded in 1919 by Carl Greenblatt, after his return from military service as a pharmacist with US forces in WWI. Later his son Burton joined him in 1945, also a pharmacist who served in WWII. G&W established a reputation as an innovative specialist in suppository, cream, ointment, gel, and liquid dosage forms. Carl’s grandson, Ron, is the current Chief Executive Officer, and Carl’s great-grandson, Aaron, is the Chief Commercial Officer. Together with their senior leadership team headed by G&W’s President, Kurt Orlofski, they lead G&W Laboratories with an uncompromising commitment to product integrity and customer service while adhering to their core values.