By Angela Chen
Teva Pharmaceutical Industries Ltd. has agreed to sell its
Pennsylvania facilities to G&W Laboratories Inc. as part of the
Israeli company's cost-reduction program.
Financial terms weren't disclosed. The sale includes 25 Teva
products that will now be manufactured and sold by G&W in the
U.S. G&W receives exclusive rights to sell up to two additional
Teva products under G&W's label, as well as all the building
and land at the Sellersville, Pa., site. It will also manufacture
and supply products to Teva until production is transferred and
offer employment to all Teva employees currently working there.
"Teva is managing its operations to create greater efficiencies
and position the company for long-term growth and success," said
Carlo de Notaristefani, chief of Teva Global Operations.
Former Teva Chief Executive Jeremy Levin had embarked on a
restructuring after taking over the company in 2012, saying it had
lost some of its focus after a series of acquisitions, and its cost
structure had become bloated. He vowed to reduce annual costs by
$1.5 billion to $2 billion by the end of 2017. Teva previously said
it would sell a manufacturing plant in Irvine, Calif.
Mr. Levin was replaced by Erez Vigodman in January 2015.
New Jersey-based G&W is a family-owned pharmacy company that
specializes in suppository and cream treatments.
The deal is expected to close in March or April.
Shares of Teva have been up about 3% this year through Friday's
close.
Write to Angela Chen at angela.chen@dowjones.com
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