WARNER-LAMBERT ANNOUNCES GLOBAL PARTNERSHIP WITH WELLCOME P.L.C.
MORRIS PLAINS, N.J., July 28, 1993 -- Warner-Lambert Company (NYSE: WLA) and Wellcome p.l.c. (NYSE: WEL) today announced the signing of a letter of intent for a global partnership to develop and market consumer health care products, including over-the-counter (OTC) versions of the prescription anti-viral drug Zovirax. Zovirax is the eighth largest selling prescription drug in the world with annual revenues exceeding $1 billion. The partnership calls for both companies to place all current and future OTC products into a joint venture which will be named Warner- Wellcome Consumer Health Products. On a worldwide basis, the new venture would have generated pro-forma OTC sales of approximately $1.6 billion in fiscal year 1992. Warner-Lambert will be the managing partner of the new alliance with day-to-day operating responsibilities. Wellcome will have three of seven members of the governing board. Warner-Lambert will receive approximately 70 percent and Wellcome approximately 30 percent of the profit generated in the U.S. After start-up adjustments, the two partners will share profits in the remainder of the world on an approximately equal basis. For Zovirax and any other future Rx-to-OTC switch candidates, the originator will retain the majority of the resulting profit. The profit arrangements are such that the alliance will not be dilutive to either partner on an operating income basis. Wellcome Chief Executive John Robb said, "This alliance adds a new dimension to our consumer health business. It gives us the ability to maximize the market potential of our existing products, as well as OTC switches of Zovirax and other therapies. And it assures our participation in creating a leading global OTC franchise. This alliance of strong partners represents an important milestone in the long-term growth of Wellcome." Warner-Lambert Chairman Melvin R. Goodes, pointing to the company's growing presence in the global consumer health market, called the venture "a rare opportunity to extend the availability of both companies' product lines to benefit consumers worldwide. Wellcome's strong position and new product opportunities in North America and Europe, combined with our initiatives, will enhance our North American business and create a major participant in European OTC markets." As soon as the North American and European structures are in place, the parties will move to integrate their OTC businesses throughout the rest of the world. Among the consumer health products which will be included in the joint venture are Actifed, Sudafed, Neosporin, Nix and Calpol from Wellcome. Warner-Lambert will contribute such products as Listerine, Cool Mint Listerine, Benadryl, Benylin, Sinutab, Efferdent, Anusol, Tucks, e.p.t and Replens. Each partner will continue to manufacture products contributed to the joint venture. Warner-Lambert Announces Global Partnership with Wellcome p.l.c. In a related transaction, Warner-Lambert also announced today the signing of a letter of intent to form a worldwide joint venture with Glaxo Holdings p.l.c. to develop and market Glaxo's potential Rx-to-OTC candidates, including the OTC version of its leading anti-ulcer drug Zantac in the U.S. and other countries. The Glaxo OTC products will be marketed and distributed through Warner-Wellcome Consumer Health Products, with Wellcome participating in the profits generated by those products. Both joint ventures are subject to the completion of final agreements, which should be signed later this year, and any necessary regulatory and other approvals. Warner-Lambert is a worldwide company devoted to discovering, developing, manufacturing and marketing quality health care and consumer products. It employs approximately 35,000 people. -0- 7/28/93 /CONTACT: Peter Wolf, 201-540-6696, Lisa Wilder, 201-540-2415 or Sandy Horner 201-540-4268 (media); and Stephen Mock, 201-540-6916 or Cary Rosansky, 201-540-4874 (investors), all of Warner-Lambert. (WLA WEL)
CO: Warner-Lambert Company; Wellcome, p.l.c. ST: New Jersey IN: MTC SU: CON
DH -- NY009 -- 6593 07/28/93 08:20 EDT
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|Date:||Jul 28, 1993|
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