Pfizer healthcare division bids received from GSK and others

Pfizer has already received bids for its over-the-counter (OTC) healthcare division from at least three companies, according to latest reports.

Reuters has said that Johnson and Johnson, GlaxoSmithKline and Reckitt Benckiser have all placed bids. The news agency reported that Glaxo had bid approximately $15 billion (8.1 billion pounds), while Johnson and Johnson had bid nearer to $14 billion.

One unnamed source remarked: “This is more than just buying mouthwash and handcream. You have some real OTC’s that must meet real government guidelines.”

“There will be two years or more of transition work with the buyer,” they added.

Should Glaxo be successful in its bid, it will add Pfizer’s range of OTC products, such as Listerine mouthwash and Sudafed decongestants, to its existing range which includes Aquafresh, Sensodyne and Macleans toothpastes, NiQuitin, Nicorette and Nicoderm anti-smoking aids, as well as Beecham’s Cold and Flu products.

Johnson and Johnson has a similarly broad range of OTC treatments, while Reckitt Benckiser manufactures and sells Nurofen ibuprofen tablets, Strepsils and Clearasil, in addition to a range of cleaning products. Reuters suggested that Reckitt may find it more difficult to win than the other bidders because it would have to acquire financing to complete the deal – Reckitt’s market capitalisation is approximately $14 billion.

All three companies have a history of OTC medicines. Johnson and Johnson has been selling its scented talcum powder, Baby Powder, to soothe skin since 1890. Reckitt Benckiser last year agreed to buy Boots Healthcare for 1.93 billion pounds, while Glaxo Wellcome acquired SmithKline Beecham’s range of OTC products in 2000.

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