Livonia Drug Firm Makes Buy

LIVONIA -- The Harvard Drug Group LLC of Livonia said its Major Pharmaceuticals division has purchased the Rugby over-the-counter pharmaceutical products and trademarks from Parsippany, N.J.-based Watson Pharmaceuticals Inc. (NYSE: WPI) for $117 million.

The Rugby OTC portfolio includes more than 250 SKUs of cough and cold, allergy, pain relief, nausea relief, nicotine gum, vitamin and nutritional supplement products which are sold through various healthcare outlets across the United States.

"I am confident that Major, with its leadership position as a marketer of OTC products, will be more strategically positioned to maximize the value of the long-known and respected Rugby name," said Paul Bisaro, president and CEO of Watson.

Acquired by Watson in 1998, Rugby possesses more than 40 years of history marketing OTC products.

"Rugby has a strong legacy of providing quality and value for pharma-care providers and consumers," said Terry Haas, CEO of Harvard Drug Group. "The combination of Major and Rugby will create supply chain efficiencies and enhance service levels."

Under terms of the agreement, Harvard Drug has acquired the Rugby trademark and all rights to market, sell and distribute OTC products and nicotine gum products sold under the trademark. Watson retains all rights to manufacture, sell and distribute all store-branded nicotine gum products, as well as other non-Rugby OTC products in its portfolio. Watson retains ownership of its nicotine gum Abbreviated New Drug Applications (ANDAs) as well as its nicotine gum manufacturing facilities.

Also as part of the transaction, Watson and Harvard have entered into a supply agreement under which Watson will manufacture and supply nicotine gum products sold in the Rugby and Major labels. Harvard Drug will manage and maintain the Rugby business within their Major Pharmaceuticals division.

More at www.watson.com or www.theharvarddruggroup.com.