Boehringer Ingelheim Pays $509.5M for Zantac® U.S. Rights
Transaction is subject to JnJ’s successful acquisition of Pfizer’s consumer healthcare business.!--h2>
Boehringer Ingelheim Pharmaceuticals will acquire all rights, title, and interest in the OTC Zantac® product brand in the U.S. for $509.5 million in cash, according to an agreement with Johnson & Johnson and Pfizer.
Boehringer Ingelheim consumer healthcare believes that as the eight largest supplier of self-medication products globally, the acquisition of Zantac will strengthen its U.S. presence. “Zantac is an excellent strategic fit that complements our existing OTC franchise and provides us with leading brands in the two largest gastrointestinal categories—acid reducers and laxatives,” comments J. Martin Carroll, president and CEO of Boehringer Ingelheim.
The transaction is subject to review and approval by the Federal Trade Commission (FTC), certain closing conditions, and Johnson & Johnson acquiring Pfizer’s consumer healthcare business, expected to close by the end of 2006. The Zantac OTC is being divested to facilitate FTC’s approval of this acquisition, according to Boehringer Ingelheim.
Upon completion of the transaction, Zantac will be distributed through the same retail channels as the company’s Dulcolax® business to increase sales, promotion, and marketing efficiencies, Boehringer Ingelheim reports. It assures no disruption to Zantac customers as it will integrate the Zantac brand into its product portfolio.
“Zantac is an excellent consumer brand with a strong market position and a bright future,” remarks Patrick Hennig, vp of sales and marketing, consumer healthcare division of Boehringer Ingelheim. “When combined with our Dulcolax line of products, the Zantac brand will provide Boehringer Ingelheim with significant additional market presence in the OTC GI product space.”