J&J to acquire Merck & Co.'s interest in European consumer pharmaceuticals jv

Johnson & Johnson (J&J) and Merck & Co. have signed a definitive agreement for J&J to buy Merck's 50% equity stake in their European non-prescription pharmaceuticals joint venture known as Johnson & Johnson * MSD Europe.

Financial terms were not disclosed and the transaction is subject to a competition review by the European Commission and other customary closing conditions.

Once completed, the acquisition will give J&J 100% ownership of the European jv business. Johnson & Johnson * Merck Consumer Pharmaceuticals Co., a 50/50 joint venture between J&J and Merck that operates in the US and Canada, is unaffected by this transaction.

The new entity will continue to grow the current Merck over-the-counter switch products marketed by the joint venture and expand operations to other European countries. As part of this continuing relationship, the companies anticipate the launch of an OTC version of Merck's prescription cholesterol-lowering drug Zocor (simvastatin) in the UK in mid-2004, pending regulatory approval.

'Through this acquisition, we will be able to estab-lish a single, pan-European consumer pharmaceutical company that will be well positioned to benefit from the changing European market for non-prescription pharmaceuticals,' said Brian Perkins, worldwide chairman, consumer pharmaceutical and nutritionals, J&J. "This represents an evolution of our successful partnership with Merck in Europe which, since its inception in 1991, has become one of the region's leading non-prescription companies.'

Johnson & Johnson * MSD Europe - which includes Laboratoires Martin-Johnson & Johnson-MSD SAS in France; Woelm Pharma GmbH & Co. in Germany; Centra Medicamenta Srl in Italy; Abello Farmacia S. L. in Spain; and Johnson & Johnson * MSD Consumer Pharmaceuticals in the UK - will become a wholly owned subsidiary of J&J upon completion of the acquisition.