Johnson & Johnson Reportedly Nearing $16 Billion Deal to Buy Pfizer's Consumer Products Unit

NEW YORK -- Drug maker Johnson & Johnson (NYSE STOCK SYMBOL JNJ) is nearing a deal to purchase Pfizer (NYSE STOCK SYMBOL PFE) Inc.'s consumer products unit, a move that would cost over $16 billion, The New York Times reported on its Web site Sunday evening.

An official announcement was expected Sunday night or Monday.

According to the Times, which attributed its report to anonymous sources involved in the deal, several bidders vied for the unit, which was put up for sale in February.

Analysts had predicted a $14 billion sale price, and GlaxoSmithKline PLC was the original favorite.

The New York-based Pfizer pursued the sale of the consumer products unit because it reportedly wanted to focus on its core, more profitable business of prescription drugs.

Jeffrey Leebaw, spokesman for the New Brunswick, N.J.-based Johnson & Johnson, declined to comment about the report to The Associated Press on Sunday night. Pfizer officials did not immediately return phone messages.

The Pfizer consumer unit includes Listerine and Sudafed. Johnson & Johnson brands include Tylenol and Neutrogena.

Pfizer also hopes to bolster its stock price through the sale, and analysts have said such a move would make Wall Street happy.

The consumer unit brought in $3.9 billion in sales in 2005, less than 8 percent of Pfizer's $52 billion in sales.

The $3.9 billion was up 10 percent from 2004. The unit also had an operating profit of $670 million, about 4 percent of Pfizer's operating profit.