CINCINNATI and JERUSALEM — Procter & Gamble Co. and Teva Pharmaceutical Industries Ltd. plan to form a joint venture that will combine their over-the-counter health care businesses in all markets outside North America.

The companies said Thursday that the partnership will meld P&G’s brand-building expertise and consumer-led innovation with Teva’s extensive geographic reach, its strength in research and development, regulatory affairs and manufacturing, plus its broad product portfolio.

Teva will benefit by broadening its OTC assortment, while P&G will be able to accelerate the global penetration of such leading OTC medicine and health brands as Vicks, Pepto-Bismol and Metamucil.

"This unique partnership positions P&G and Teva to be a leading player in the consumer health care industry," Robert McDonald, chairman, president and chief executive officer of P&G, said in a statement. "This is a remarkable opportunity to accelerate growth for both companies’ OTC businesses. Together, we will serve more consumers in more parts of the world, more completely by increasing access to high-quality, affordable over-the-counter medicines."

Altogether, the P&G and Teva markets involved in the alliance generated sales of more than $1 billion last year. One aspect of the partnership will call for Teva to take global responsibility for manufacturing to supply the joint venture markets and P&G’s established North American business.

"We are extremely pleased to be joining forces with Procter & Gamble, the world leader in brand building and innovative go-to-market capabilities," stated Schlomo Yanai, president and CEO of Teva. "This partnership will create value by immediately expanding the number of channels and geographies in which each company’s OTC products will be sold. Together, we will develop a new platform with the potential to reshape the entire global O-T-C market."

According to P&G and Teva, the nearly $200 billion consumer health care sector offers both companies significant growth potential in developed and emerging markets, as the global population continues to age and consumers in developed nations focus on quality and of life and wellness.

In addition, the rapid economic growth of a number of emerging markets and the expanding purchasing power of their consumers also bode well for continued growth of the global OTC market, they said.

The companies added that the venture also will exploit opportunities to develop prescription-to-OTC switches to create new brands to be marketed worldwide, including in North America.

Terms of the transaction weren’t disclosed, and the agreement is expected to close in the fall of 2011, pending regulatory approvals.