Roche sells OTC business to Bayer for 3.6B SwFr and non-RX orlistat to GSK

As has been expected (Marketletters passim), Roche of Switzerland hassold its over-the-counter medicines business, including five manufacturing sites (in: Grenzach, Germany; Gaillard, France; Pilar, Argentina; Casablanca, Morocco; and Jakarta, Indonesia), as well as its 50% stake in the Roche/Bayer OTC joint venture in the USA to Germany's Bayer for a consideration of 3.6 billion Swiss francs ($2.94 billion). This will be paid in cash at closing of the deal, which is expected by year-end or early 2005, and is subject to the approval of relevant antitrust authorities.

Commenting on the deal, Sal Oppenheim analyst Ludger Mues, based in Switzerland, said "the sale price is above my forecast and that of the market [but] it is certainly good as it enhances Roche's financial flexibility," reports Reuters.

The combined businesses of Bayer Consumer Care and Roche Consumer Health will have sales of around 2.4 billion euros ($2.98 billion). employ about 6,700 people in 120 countries and will create one of the top three non-prescription medicines businesses worldwide. It will have its global headquarters in Morristown, New Jersey, USA, the companies have said, adding that the combined OTC business will be headed by Gary Balkema, currently president of Bayer HealthCare's global Consumer Care Division.