Johnson & Johnson picks up; Pfizer discards
Johnson & Johnson increased its already-strong holdings in over-the-counter health product market by snapping up the consumer product division of drug giant Pfizer in a $10.6 billion cash deal. J & J beat out British pharma firm GlaxoSmithKline PLC but, as we have seen, that may not mean the end of the story.
One analyst said, according to USA Today ("J&J to buy Pfizer's consumer health division for $16.6 billion", 6/27/06), that "the Pfizer acquisition will leave J&J with 40% of its business in pharmaceuticals, 35% in medical devices and diagnostics and 25% in consumer care."
J & J is awash in cash for investments, especially since it was outbid earlier in its attempt to acquire medical devices rival Guidant, an attempt that failed. Pfizer, #1 in prescription drugs, is suffering and looking forward to even rougher spots, as its flagship meds either go out of patent or will have to compete with generic versions of products from other big pharma companies. The cash will come in handy.
Among the brands acquired are some of the biggest US brands, product that almost everyone has in their medicine cabinets. They are
- Listerine (the US's #1 mouthwash)
- Visiine (eye care)
- Sudafed, Sinutab, Actifed, and Benadryl (antihistamine)
- Nicorette (smoking cessation)
- Lubriderm, Caladryl, Cortizone, Desitin, Neopsorin, Polysporin, Corn Huskers, Pacquin (skin care),
- Rogaine, Progain (baldness),
- Bengay (muscle pain),
- Purelle (hand cleaning)
- Zantac, Gelusil, and Rolaids (indigestion)
- e.p.t. (pregnancy tests)
- Doxidan (constipation)
- Dramimene (motion sickness)
- Efferdent, Fresh 'n Brite (denture cleaning),
- Emetrol (anti-nausea)
- Hemorid, Tucks (hemorrhoids)
- Kaopectate (diarrhea),
- Luden's (cough drops)
- Micatin (athlete's foot)
- Myadec, Unicap (nutritional supplements)
- NasalCrom (nasal spray)
- PediaCare (cough)
- Plax (tooth care)
- Lavacol, Proxacol (antiseptic)
- Unisom (sleep)
- Wart-Off (wart removal)
Johnson & Johnson's current list of consumer products includes:
- Tylenol, St. Joseph's Aspirin (pain relief)
- Band-Aid (bandages)
- Motrin (anti-inflammatory)
- Immodium (diarrhea)
- Nizoral (dandruff)
- Reach (toothbrushes and floss)
- Monistat (yeast infections)
- K-Y (lubricant, skin care)
- Aveeno, Clean & Clear (skin care)
- Stayfree, Carefree (feminine hygiene)
- Balmex, Johnson & Johnson (baby products)
In a 50-50 joint venture with pharma giant Merck (Johnson & Johnson/Merck Consumer Pharmaceuticals Co.), the company also sells:
- Mylanta, Pepcid AC (antacid)
- Mylicon (colic)
The Pfizer deal will make strong position in antacids, skin care, and anti-inflammation products even stronger. Fr J&J, it gives then even a stronger hand in negotiating with the increasingly powerful drug store chain oligopoly that stocks such products. It will give them the #1 or #2 product in a wide variety of segments. Strangely, the two companies are taking opposite strategies. Pfizer will become more dependent n prescription drugs, while J & J will become less so.
6:35:50 PM 
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