J&J's acquisition of Pfizer Healthcare passes anti monopoly scrutiny

Johnson & Johnson's $16.6-billion acquisition of rival drug maker Pfizer's Consumer Healthcare business has received the approval of the Federal Trade Commission. The deal, which was first announced in June, has already been approved by the European Union.

The US anti monopoly watchdog said it would not oppose the deal as long as the companies sold off four drugs - Zantac, Cortizone, Unisom and Balmex.

J&J outbid British groups GlaxoSmithKline Plc and Reckitt Benckiser Plc to bag the deal at an acquisition price of nearly 4.3 times of Pfizer's 2005 sales of $3.9 billion for the Pfizer products. (See: J&J to acquire Pfizer Consumer Healthcare for $16.6 billion)

The acquisition will consolidate J&J's position as the world's largest supplier of consumer health-care and over-the-counter medicines, which complement J&J's consumer and OTC products, which include Band-Aid, Tylenol, Reach, Splenda, and the Clean & Clear, Aveeno and Neutrogena skin care brands.

The 'over-the-counter' segment of the global pharmaceutical industry has witnessed a wave of mergers and acquisitions due to growing consumer demand.

In October, 2005, Reckitt Benckiser trumped J&J paying $3.42 billion for Boots' healthcare division that owned Nurofen, Strepsils and Clearasil brands.