Pharma BD Deal Intelligence

Boehringer Ingelheim Pharmaceuticals / J&J/Pfizer (US OTC Zantac rights)

2006 · Asset Purchase · $510M · Complete

WRONG BY 33 POINTS

BI ran Zantac OTC profitably for 11 years and exited cleanly in 2017 via the Sanofi swap - but the carcinogen (NDMA) mass-tort wave that hit in 2019-2020 pulled BI back in as a former manufacturer, and it lost a 2023 arbitration seeking indemnification from Sanofi.

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The coverage arc

Oct 13, 2006 Boehringer Ingelheim (via BioSpace) Bullish

Zantac is an excellent strategic fit that complements our existing OTC franchise and provides us with leading brands in the two largest gastrointestinal (GI)…

Oct 19, 2006 FDA News Bullish

Boehringer Ingelheim acquires US OTC Zantac rights from J&J/Pfizer for $509.5M, expanding its self-medication footprint as the eighth-largest global OTC…

Dec 12, 2006 Federal Trade Commission Neutral

The companies have agreed to sell Pfizer's Zantac H-2 blocker business to Boehringer Ingelheim... The order's terms will ensure that competition will be…

Source summaries from our enrichment pipeline; follow links for originals.

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OTC H-2 blocker rights divested per FTC order; $509.5M cash

Did it work? Outcome assessment

BI ran Zantac OTC profitably for 11 years and exited cleanly in 2017 via the Sanofi swap - but the carcinogen (NDMA) mass-tort wave that hit in 2019-2020 pulled BI back in as a former manufacturer, and it lost a 2023 arbitration seeking indemnification from Sanofi.

Strategic verdict
Failed to Achieve

Key facts

Related deals — scored

DealYearValueOutcome
Boehringer Ingelheim Pharmaceuticals / J&J/Pfizer (US OTC Zantac rights) (this deal)2006$510M42
Eli Lilly and Company / ICOS Corporation2006$2.3B87
Crucell N.V. / Berna Biotech AG2006$450M85
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Reckitt Benckiser plc / Boots Healthcare International2006$3.4B82
Genentech, Inc. (Roche Group) / Tanox Inc.2006$919M80
UCB SA / Schwarz Pharma AG2006$5.6B80

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