Procter & Gamble And Teva Pharmaceuticals Unveil Details of New Joint Venture
November 05, 2011
Consumer-goods giant Procter & Gamble (NYSE:PG) and drug company Teva Pharmaceuticals (NYSE:TEVA) unveiled details about their new joint venture to develop and sell branded generic medicines.The venture is expected to start with $1.3 billion dollars in annual sales, with potential growth of $4 billion by the end of the decade. P&G says it will bring its branding and design expertise to the venture while Teva will contribute it's development capabilities. Even though P&G sold it's prescription-drugs business two years ago, it is looking to expand its drug offerings with Teva, expecting the venture to post double-digit sales growth. The companies announced the joint venture in March calling it PGT Healthcare.Procter & Gamble (NYSE:PG) has potential upside of 13.3% based on a current price of $63.06 and an average consensus analyst price target of $71.44.