Johnson & Johnson is expanding in the emerging markets through the acquisition of the Russian over-the-counter brands of India's JB Chemicals & Pharmaceuticals.
The healthcare giant's Cilag unit is paying out $260 million in cash to get access to several OTCs, notably the two top-selling cough brands in Russia, Rinza and Doktor Mom. J&J and its affiliates will market these products in Russia, the world's eighth largest OTC market, and in the Commonwealth of Independent States and other countries.
Jesse Wu, worldwide chairman of the company’s consumer operations, noted that "emerging markets continue to be an important growth opportunity for J&J". He added that "this acquisition of strong brands in Russia will allow us to expand our OTC offerings in these growth markets".
As for Mumbai-based firm, chairman JB Mody said the divestment will provide the company with "the financial flexibility to pursue new growth opportunities in India and other focus markets". He added that "we are confident J&J will take our business in Russia/CIS to even greater heights".
In addition, JB has signed a long-term agreement to supply Cilag finished products for the acquired Russia/CIS OTC business.