[Ip-health] Johnson & Johnson to Buy Pfizer Consumer Health Unit for $16.6 Billion in Cash

[Ira Glazer]

 >> For those people who were already boycotting Pfizer's
over-the-counter and non-prescription products, or those who were
contemplating doing so:

NEW YORK (AP) -- Health care products maker Johnson & Johnson said
Monday it is buying drug maker Pfizer Inc.'s consumer health care unit
for $16.6 billion in cash. Pfizer said it would The deal would give New
Brunswick, N.J.-based Johnson & Johnson brand names including Listerine,
Nicorette, Visine, Sudafed and Neosporin as part of a unit whose
reported sales totaled $3.9 billion in 2005. Pfizer had been reviewing
its strategic options for the division since February so it could focus
on its prescription drug business.

Pfizer said it will buy back up to $17 billion in shares, including up
to $7 billion this year and $10 billion in 2007. The plan reflects an
increase to $18 billion from $5 billion in the company's stock
repurchase authority.

Johnson & Johnson will also acquire the U.S. over-the-counter switch
rights to the prescription antihistamine Zyrtec upon patent expiration.
Its own brands already include Band-Aid, Tylenol and Neutrogena.

"This acquisition builds upon our broad base in health care products and
our leadership objectives in the consumer, pharmaceutical and medical
devices and diagnostics markets," Johnson & Johnson Chairman and Chief
Executive William C. Weldon said in a statement.

The deal, which was approved by the boards of both companies and is
subject to regulatory and shareholder approval, is expected to close by
year-end and boost Johnson & Johnson's earnings in 2009.

New York-based Pfizer said it expects about $13.5 billion in proceeds,
after taxes, from the Pfizer Consumer Healthcare sale. Due to the stock
buyback, the company said it doesn't expect the sale to lower 2007
earnings, but it expects a profit boost in 2008.

Pfizer shares jumped rose 62 cents, or 2.7 percent, to $23.26, and J&J
shares fell $1.67, or 2.7 percent, to $59.65 in early trading on the New
York Stock Exchange.