WARNER WELLCOME JV SETS SIGHTS ON TOP SPOT

Warner-Lambert and Wellcome have now finalized their arrangement, begun with a letter of intent in July 1993, to set up joint venture companies, Warner Wellcome, to develop and market over-the-counter medicinal products, along with declaring the aim of becoming the number one company worldwide in the OTC drugs sector (currently it would be in third spot).

After start-up adjustments, the joint ventures are established in the USA on a 70% W-L and 30% Wellcome basis, and in Europe on a 50:50 basis. They will now market the total OTC ranges of W-L and of Wellcome, and have, or will have, OTC switch products coming (almost exclusively) from the Wellcome stable, or new OTC products developed by either company, as well as licensed-in products.

On a worldwide basis, the new venture would have generated pro forma OTC sales of around $1.6 billion in the partners' last fiscal year. The bulk of this would have been in the USA, which had last fiscal year joint turnover of some $1 billion, with Europe and the rest of the world contributing $300 million respectively. Within the European region, the main Warner Wellcome markets are the UK (with sales of $123 million), Germany ($64 million), France ($60 million) and Italy (451 million). In terms of therapeutic categories, Warner Wellcome OTC sales would have been 34% oral hygiene, 31% upper respiratory, 16% skin care, 5% gastrointestinals and 14% other products.