Teva Pharmaceutical Industries has signed an agreement to sell its Sellersville, Pennsylvania facility to G&W Laboratories, Inc. This sale supports its plans to streamline operations by reducing excess manufacturing capacity and is part of the Company’s previously announced cost reduction programme.

The sale includes all buildings, land, and equipment located at the site. Under the terms of the agreement, G&W will manufacture and supply products to Teva from the site until production of these products is transferred to other sites in Teva's network. Additionally, G&W will offer employment to all employees located at Sellersville.

The transaction includes the sale to G&W of approximately 25 products from the Teva portfolio, which will be manufactured and sold by G&W in the US under the G&W label. Further, the transaction includes the grant to G&W of exclusive rights to sell up to two additional Teva products in the US under G&W's label, which Teva will continue to manufacture at its Zagreb, Croatia facility. The transaction is expected to close in March or April 2015, after the appropriate regulatory review and the satisfaction of certain closing conditions.

“Teva is managing its operations to create greater efficiencies and position the company for long-term growth and success. We have a qualified and dedicated team at Sellersville and are pleased that we were able to come to an agreement with G&W Laboratories that will enable them to continue working in their current community,” stated Carlo de Notaristefani, president and chief executive officer of Teva Global Operations.

“G&W is pleased to have reached an agreement with Teva to acquire the Sellersville facility; obtain rights to more than 25 products; and employ a highly dedicated and experienced work force. Under the agreement, G&W will provide a number of products to Teva that will continue to be manufactured at the acquired site. The acquisition of the Sellersville facility and products strengthens our long-term relationship with Teva, and fits with our strategy of acquiring platforms from which we can grow the business and expand our product and dosage offering,” stated Dr. Aaron Greenblatt, executive vice president and chief commercial officer of G&W Laboratories, Inc.

The Sellersville site currently produces generic drugs with a portfolio of more than 50 products manufactured as solid dose forms (tablets and capsules), liquids, creams and ointments.