Specialty pharmaceutical company Warner Chilcott plc (WCRX) and LEO Pharma said Wednesday that LEO Pharma is re-acquiring Warner Chilcott's exclusive product licensing rights in the U.S. to its topical psoriasis treatments Taclonex, Taclonex Scalp and Dovonex. LEO is also repurchasing rights to all products in its development pipeline, and acquiring all inventories of the products. LEO will make a one-time cash payment of $1.0 billion to Warner Chilcott, which will result in a one-time gain for the specialty pharmaceutical firm.
Under the terms of the agreement, Warner Chilcott has agreed to continue distribution and promotion of Taclonex, Taclonex Scalp and Dovonex for LEO Pharma until December 31 and to perform certain transition services for LEO Pharma for up to one year.
The repurchase of the product rights and inventories for $1.0 billion, which is expected to close today, will result in a one-time gain for Warner Chilcott of about $450 million after-tax, or $1.79 per share based on 251.3 million shares outstanding. Net cash proceeds, after taxes triggered by the gain, are expected to be nearly $980 million.
Warner Chilcott is using a portion of the cash generated by the sale to repay and terminate its existing senior secured credit facilities, $480 million of which was outstanding on September 23. The proceeds will also reduce the amount of financing necessary for Warner Chilcott's pending acquisition of Procter & Gamble Pharmaceuticals.
According to Gitte Aabo, Chief Executive Officer of LEO Pharma, "The acquisition of the psoriasis dermatology portfolio from Warner Chilcott provides LEO with a unique stepping stone and we have incorporated an affiliate to be headquartered in New Jersey. The deal is LEO Pharma's largest ever and is indicative of our commitment to geographic expansion and growth in areas including the USA. We expect to start operations in the beginning of 2010," .
Morgan Stanley acted as financial adviser to LEO Pharma on this transaction, and its legal advisor is Morgan, Lewis & Bockius LLP. Warner Chilcott's legal advisor is Davis Polk & Wardwell, LLP.
WCRX closed Tuesday's regular trade at $19.77, down from the previous close of $20.01, on 869,200 shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.