Ireland's Warner Chilcott buys P&G drug business for $3.1B

TRENTON, N.J. -- Warner Chilcott, which specializes in women's health and dermatology products, will get a portfolio with $2.3 billion in annual sales, boost its offerings in women's health with a blockbuster osteoporosis treatment and get a toehold in the urology and gastroenterology markets.

Just the top drug that Warner Chilcott gets in the deal, Actonel for osteoporosis, with more than $1 billion in annual sales, exceeds the company's 2008 revenue of $938 million. Warner Chilcott also gains colitis drug Asacol HD, bone drug Didronel and Enablex for overactive bladder.

"The acquisition of the P&G pharmaceutical brands and employee talent is a transformational, strategic move for us," said Roger Boissonneault, Warner Chilcott's president and chief executive.

Warner Chilcott's products include some well-known oral contraceptives — Loestrin 24 FE, Femcon FE and Ovcon — plus multiple treatments for women's health issues.

P&G last month sold Japanese market rights for its osteoporosis treatment to Ajinomoto for $210 million.

The purchase expands Warner Chilcott's business into 14 new countries. Tom Millikin, spokesman for P&G's pharma business, said about 85% of the 2,300 employees in that business will transfer to Warner Chilcott.

"These types of transactions tend to be positive in the short term for acquiring companies, so (Warner Chilcott) may see an initial pop" in stock price, analyst Les Funtleyder at Miller Tabak wrote to investors. He added that the company "will have to execute well in order to see longer-term returns."