Sector News

J&J drops out of the race for Pfizer consumer unit, paving the way for GSK, Reckitt

January 26, 2018
Life sciences

Johnson & Johnson has plenty of money coming in from overseas, thanks to U.S. tax reform. But it won’t be spending it on Pfizer’s consumer health unit.

The New Jersey drugmaker has dropped out of the running ahead of the deadline to submit nonbinding offers, J&J confirmed Thursday.

“While we would normally not comment on market speculation or rumors, in this instance we refute assertions that we are in negotiation for Pfizer’s consumer business,” J&J VP of media relations told FiercePharma.

J&J, which snapped up Pfizer’s previous consumer health business for a cool $16.6 billion back in 2006, was considered a viable candidate for the current unit, and it’s about to bring home $12 million in overseas cash thanks to new U.S. tax laws. But earlier this week, CEO Alex Gorsky told investors the company would put a good chunk of that change back into R&D, reminding them that J&J did more than $35 billion in deals last year.

Meanwhile, J&J stepping out of the picture could open things up for GlaxoSmithKline and Reckitt Benckiser, both of which have their eye on the consumer unit. And it could also hurt Pfizer’s negotiating power in the company’s efforts to generate more than $20 billion from a sale, Reuters’ sources said.

That’s not to say there isn’t other competition out there. As one source told Reuters, Pfizer is likely to field five or six bids, and food giant Nestle—which is pushing deeper into the healthcare space to diversify away from its food business—is among them. Bids are due Feb. 1, the news service reports. Earlier this month, reports listed the Swiss company as the frontrunner in the race for Merck KGaA’s OTC unit, which is also up for sale.

By Carly Helfand

Source: Fierce Pharma

comments closed

Related News

June 24, 2022

Echosens and Novo Nordisk announce partnership to increase awareness and advance early diagnosis of NASH

Life sciences

Echosens, a high-technology company offering liver diagnostic solutions, and Novo Nordisk A/S, a leading global healthcare company, announced a partnership to advance early diagnosis of non-alcoholic steatohepatitis (NASH) and increase awareness of the disease among patients, healthcare providers and other stakeholders.

June 24, 2022

argenx receives positive CHMP opinion for Efgartigimod for the treatment of adult patients with Generalized Myasthenia Gravis in Europe

Life sciences

Positive opinion based on Phase 3 ADAPT trial showing efgartigimod provided clinically meaningful improvements in strength and quality of life measures. If approved, efgartigimod will be the first neonatal Fc receptor (FcRn) blocker for the treatment of adults in Europe living with rare neuromuscular disease generalized myasthenia gravis (gMG).

June 24, 2022

Galapagos finally takes M&A plunge, spending $251M for 2 biotechs in CAR-T push

Life sciences

Galapagos CEO Paul Stoffels, M.D., has finally taken the plunge on M&A. The newly minted chief executive has signed not one but two deals in an attempt to right the ship, bringing two small biotechs aboard for a combined 239 million euros ($251.4 million).