Teva to sell Sellersville, PA, manufacturing facility to G&W Laboratories

Israel-based Teva Pharmaceutical Industries (NYSE: TEVA) is to sell its manufacturing facility in Sellersville, Pennsylvania, to G&W Laboratories for an undisclosed sum.

The deal comes as part of Teva’s cost-reduction program, and is expected to close in March or April. It also includes around 25 Teva products that are to be manufactured and sold by G&W in the USA. G&W will manufacture and supply products from the site to Teva until the transaction is completed. Teva has granted G&W exclusive rights to sell up to two of its products under the G&W label in the USA. The deal is not expected to lead to job losses, with G&W offering employment to all staff at the site. Teva, however, is aiming to reduce its global workforce by around 10% (around 5,000 employees) as part of its cost-saving measures, designed to save $2 billion by the end of 2017.

Carlo de Notaristefani, chief executive of global operations at Teva, said: "Teva is managing its operations to create greater efficiencies and position the company for long-term growth and success.”