J&J to buy J B Chemicals' Russian OTC drugs for $260 million
24 May 2011
Johnson & Johnson is acquiring several over-the-counter medicines sold in Russia from India's J B Chemicals and Pharmaceuticals Ltd, for about $260 million as part of its strategy of expanding into other emerging markets.
The brands included in the acquisition are Rinza, Russia's leading multi-symptom cough and cold brand, and Doktor Mom, Russia's number two selling cough brand, as well as several other brands.
The acquisition is being carried through Cilag GmbH International, a wholly-owned subsidiary of J&J.
J&J and its affiliates will market these products in Russia, the world's eighth largest OTC market, and in the Commonwealth of Independent States and other countries.
The OTC market in Central & Eastern European countries grew 8-9 per cent to €10 billion ($15 billion) in 2009, with Russia holding a 50 per cent market share, according to an HDFC Securities report.
"Emerging markets continue to be an important growth opportunity for Johnson & Johnson," said Jesse Wu, worldwide chairman, Johnson & Johnson Group of Consumer Companies. "This acquisition of strong brands in Russia will allow us to expand our OTC offerings in these growth markets and support our emerging markets strategy."