Mumbai: Johnson & Johnson’s Cilag unit agreed to buy Russia’s leading over-the-counter cough-and-cold medicine from J.B. Chemicals & Pharmaceuticals Ltd. for about $260 million in cash.
In addition to the Rinza brand, the deal gives J&J Russia’s second-biggest cough medicine, Doktor Mom, as well as other drugs owned by Mumbai-based J.B. Chemicals, J&J said in a statement today.
The purchase is expected to close by the middle of 2011, the company said.
J&J, the world’s second-biggest seller of health products after Pfizer Inc., generated 7.4% of its $61.6 billion in revenue last year from nonprescription health products led by Tylenol and Motrin. Recalls of those items cost the company more than $900 million in sales in 2010 and may shave this year’s earnings by 12 cents, the New Brunswick, New Jersey-based company said in 19 April earnings statement.
Emerging markets continue to be an important growth opportunity for Johnson & Johnson, said Jesse Wu, the worldwide chairman of the company’s consumer group, in the statement.This acquisition of strong brands in Russia will allow us to expand our OTC offerings in these growth markets and support our emerging markets strateg.
J&J and its affiliates will market the new brands in Russia, the world’s eighth-largest over-the-counter market, and in the Commonwealth of Independent States and other countries.
J&J fell 35 cents to $65.34 at 12:49 pm in New York Stock Exchange composite trading. J.B. Chemicals dropped Rs 12.4, or 7.9%, to Rs 144.7 today in Mumbai trading.
J.B. Chemicals sells herbal remedies under the Doktor Mom brand in Russia, Ukraine and the Commonwealth of Independent States countries, according to its website.