BOEHRINGER INGELHEIM BUYS ZANTAC RIGHTS FOR $509.5 MILLION

Boehringer Ingelheim Pharmaceuticals said it is buying the U.S. rights to the OTC antacid Zantac from Pfizer for $509.5 million in cash.

Pfizer is selling the rights to Zantac (ranitidine hydrochloride), which is used to treat duodenal ulcers, so the FTC will approve Johnson & Johnson's (J&J) acquisition of its consumer healthcare business. That $16.6 billion deal was announced June 26 and is expected to close by the end of this year.

The Zantac transaction is subject to review and approval by the FTC, the completion of the J&J-Pfizer deal and other closing conditions.

"Zantac is an excellent strategic fit that complements our existing OTC franchise and provides us with leading brands in the two largest gastrointestinal categories -- acid reducers and laxatives," said J. Martin Carroll, president and CEO of Boehringer Ingelheim. The company plans to distribute Zantac through the same retail channels as its current Dulcolax line of products.