Teva Pharmaceutical Industries Ltd. will sell its Sellersville, Pennsylvania, facility to G&W Laboratories Inc. Teva says the sale supports its plans to streamline operations by reducing excess manufacturing capacity and is part of its cost-reduction program.
“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,” stated Carlo de Notaristefani, president and CEO of Teva Global Operations.
The sale includes all buildings, land and equipment located at the site. Under the terms of the agreement, 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, according to a press release. G&W will offer employment to all employees located at Sellersville.
The transaction includes the sale to G&W of about 25 products from the Teva portfolio, which will be manufactured and sold by G&W in the U.S. under the G&W label, the release said. Further, G&W will have 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 Zagreb, Croatia, facility. The transaction is expected to close in March or April 2015.
"Under the agreement, G&W will provide a number of products to Teva that will continue to be manufactured at the acquired site," said Dr. Aaron Greenblatt, executive vice president and CCO of G&W Laboratories Inc. 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 Sellersville site currently produces generic drugs with a portfolio of more than 50 products.
Read the full release