Pfizer agrees sale of consumer healthcare business to J&J

Pfizer Inc has reached an agreement to sell its consumer healthcare business to Johnson & Johnson (J&J) for US$16.6bn (euro13.2bn) in cash.

Pfizer chairman and ceo Hank McKinnell said: "We will now be in an even stronger position to capitalise on the many opportunities we see in our core pharmaceuticals business, as well as enhance returns to our shareholders. He added, "We will focus on our key priorities: leveraging our internal research and development and strong pipeline of new medicines; continuing to acquire products and technology that will drive long-term growth of the business."

Pfizer expects that during 2006 and 2007 it will purchase up to $17bn of the company's common stock. This reflects an increase in the company's share purchase authorisation from $5 bn in June 2005 to $18 bn, which has been approved by Pfizer's board of directors.

Pfizer Consumer Healthcare had revenue of $3.9bn in 2005 and its portfolio includes the well-known global brands Listerine, Nicorette, Sudafed, Benadryl and Neosporin.

'The business adds a diverse portfolio of strong, growing, enduring brands that provide Johnson & Johnson with leadership positions in nine additional categories, including large new segments such as smoking cessation and mouthwash", said William Weldon, chairman and ceo of J&J.

The transaction is expected to be complete by the year-end and is subject to closing conditions and regulatory approvals.