Pfizer will sell its consumer healthcare division to Johnson & Johnson (J&J) for $16.6 billion and focus on developing new drugs and acquiring new technology, according to announcements by both companies. The acquisition makes J&J the world's largest supplier of consumer healthcare and over-the-counter (OTC) products.
Pfizer Consumer Healthcare, which reported $3.9 billion in revenue last year, includes such OTC products as Nicorette, Listerine, Lubriderm, Visine, Neosporin, Sudafed, Zantac and Benadryl.
According to its statement, Pfizer plans to use the $13.5 billion in after-tax proceeds to purchase up to $7 billion in common stock in 2007 and up to $10 billion in 2008. Furthermore, Pfizer plans to invest in treatments for ailments such as Alzheimer's disease, diabetes, obesity and infectious diseases.