P&G Health Care is the business division which houses Procter & Gamble's oral care and general OTC healthcare products. Among the major global brands housed within this unit are Crest and Oral-B, Vicks and Peptobismol. The oral care business has long been a pillar of the parent group, especially in the US, with Crest one of its flagship products for more than 50 years. Internationally, though, P&G had little presence in the sector until the acquisition of Gillette brought with it the Oral-B toothbrush business, now its dominant oral brand outside the US, covering not just brushes but also toothpaste. Attempts to establish Crest internationally were mostly unsuccessful. As a result, in most cases, the formulations of paste marketed under the Crest brand in the US are marketed elsewhere as Oral-B. P&G is now the global #2 in oral care behind Colgate. The group's commitment to more traditional medicines, though, has waxed and waned over the years. What was once a substantial prescription pharmaceutical business - including the Asacol and Actonel brands - was sold in 2009 to Warner Chilcott (later Allergan). However the group retained control of Prilosec as an over-the-counter product. In a further adjustment to the group's focus, its OTC healthcare products outside North America - including global icon Vicks and digestive products including Metamucil and Pepto Bismol - were transferred into a joint venture with generic manufacturer Teva at the end of 2011. The appointment of former P&G Health chief David Taylor as group CEO in 2015 prompted another change in strategy. The Teva joint venture was dissolved in 2018, giving P&G back full control of its international OTC business. At the same time the group paid $3.7bn to acquire the consumer healthcare business of German pharma group Merck, with brands such as Seven Seas vitamins, and Bion 3, Femibion and Neurobion mineral supplements. Steven Bishop is divisional CEO, P&G Health Care. Paul Gama is president of personal health care. The division contributed revenues of $9.0bn in ye June 2020, with net earnings of $1.7bn. Oral care alone contributed revenues of around $5.4bn.
Capsule checked 12th March 2021
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Who competes with Procter & Gamble? Global competitors in health include Colgate-Palmolive and GlaxoSmithKline and a variety of other companies. See Personal Care and Pharmaceutical & Healthcare Sectors
Historical profile information for P&G Health
Adbrands Weekly Update 26th Apr 2018: In something of a surprise development, Procter & Gamble jumped back into global healthcare with two major developments. In its biggest purchase since Gillette more than a decade ago, P&G agreed to acquire the consumer healthcare division of German drug company Merck Group for €3.4bn, just under four times annual revenues. Merck had announced a strategic review of that division earlier this year, but buyers have been hard to find, not least because Pfizer's OTC division was also up for sale. Brands include Bion, Femibion and Neurobion mineral supplements, Seven Seas vitamins, Nasivin decongestants and Kytta pain relief gel. That deal accompanied an announcement from P&G that it will dissolve its partnership with troubled Israeli drug developer Teva, which has been largely responsible for marketing P&G's OTC portfolio outside North America since 2011. The two companies will take back control of their own brands from July this year. There is no significant financial impact for either company from the termination. Investors were generally unimpressed by both developments. "Perhaps the best thing that could be said about the Merck acquisition is that P&G didn't do a bigger, more distracting deal like one for the consumer health care unit that Pfizer has been trying to sell," said the WSJ. "P&G still needs to come up with a compelling response to fundamental challenges in its home US market."
Adbrands Weekly Update 12th Mar 2015: Chinese regulators fined Procter & Gamble almost $1m for making false claims in advertising for its top-selling Crest toothpaste. It said that the company had overstated product benefits in respect of its Crest Whitening variant, and digitally altered images to make teeth look whiter than they were. Local news sources said the Rmb6bn fine (around $960,000) was a record for this type of misdemeanour. In the ad, a well-known local TV presenter was seen worrying that her teeth wouldn't be white enough for a magazine photoshoot. As a result of brushing with Crest for just one day, she ends up with dazzlingly white teeth. P&G accepted that its claims had not been sufficiently "precise".
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