Procter and Gamble and Teva combine forces in OTC sector

Procter and Gamble has agreed a major new partnership with Teva in the over-the-counter (OTC) medicines market.

The two healthcare companies are allying to launch a new joint venture organisation called PGT Healthcare, which will be based in Switzerland and operate in all markets outside North America, although new US brands will also be developed.

PGT Healthcare will bring together Procter and Gamble's branding expertise and Teva's experience in drug marketing, creating an entity that will compete for leadership of the consumer healthcare sector.

Tom Millikin, associate director of external relations at Procter and Gamble, said the new partnership will benefit from its association with leading brands such as Vicks and Pepto-Bismol, reports Chemist and Druggist.

He added: "The result will be the highest-quality, lowest-cost supply system of OTC healthcare anywhere in the world."

Teva president and chief executive officer Shlomo Yanai has also suggested that the alliance will lead to growth across both companies' brand portfolios, saying: "We will be better together."