BOEHRINGER INGELHEIM ACQUIRES RIGHTS TO ZANTAC FROM J&J, PFIZER

Boehringer Ingelheim Pharmaceuticals announced that it has entered into an agreement with Johnson & Johnson (J&J) and Pfizer to acquire the U.S. rights to the over-the-counter (OTC) Zantac product line for $509.5 million in cash. The transaction is subject to review and approval by the Federal Trade Commission (FTC), certain closing conditions and the acquisition by Johnson & Johnson of the Consumer Healthcare business of Pfizer, which is expected to close by the end of 2006.

Under the terms of the agreement, Boehringer Ingelheim will acquire all rights, title and interest in the Zantac product brand in the United States. The Zantac OTC is being divested in order to facilitate the approval by the FTC of the acquisition by J&J of the Pfizer Consumer Healthcare business, according to the companies.

Subject to completion of the transaction, Zantac will be distributed through the same retail channels as Boehringer Ingelheim's drug Dulcolax, which will allow for seamless integration and increased sales, promotion and marketing efficiencies, the company said. Zantac (ranitidine) is indicated for the treatment of heartburn.