Ciba And R-PR In N American OTC Deal

Rhone-Poulenc Rorer has agreed to transfer its over-the-counter business in the USA and Canada to Swiss company Ciba. The transaction is valued at around $407 million. The deal includes R-PR's leading antacid brand Maalox (aluminum and magnesium hydroxide). The acquired products are expected to add around $160 million to sales of Ciba Self-Medication in 1995. Rhone-Poulenc Rorer will focus on building up its business in Europe and the rest of the world.

"This is the latest in a series of strategic moves we've made to develop our market position," commented Roland Jeannet, worldwide head of self medication at Ciba. He added: "it gives us critical mass to become a major player in this important market."

R-PR To Stay In OTC In Europe And Rest Of World Robert Cawthorn, chairman of Rhone-Poulenc Rorer said: "for some time we have been evaluating options to improve the competitiveness of our self-medication and OTC business. In Europe, we have a strong and important OTC business ranked number two in the industry, but were faced with a lack of critical mass in the USA and Canada. As no potential global agreement met our needs, we decided to continue to build our self-medication and OTC business in Europe and the rest of the world ourselves while seeking an agreement in the USA and Canada."