Drug Store News - Digesting an acquisition: Patrick Hennig, Boehringer Ingelheim
Following the announcement that Johnson & Johnson would acquire Pfizer Consumer Healthcare, Boehringer Ingelheim Pharmaceuticals entered into an agreement with Johnson & Johnson and Pfizer to acquire the U.S. rights to the over-the-counter Zantac product line for $509.5 million in cash.
Drug Store News caught up with Boehringer Ingelheim’s Patrick Hennig for his thoughts on Boehringer’s digestive property.
DrSN: What does the Zantac acquisition mean for Boehringer Ingelheim?
Hennig: Zantac is a great strategic fit that complements our existing OTC franchise in the United States. We now have two powerful brands–Zantac and Dulcolax–that compete in the two largest segments of the GI category–acid reducers and laxatives
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DrSN: How would you characterize Zantac’s position in the marketplace?
Hennig: Zantac is a leading OTC brand competing successfully in a large and important retail category. Zantac has had strong consumption growth throughout 2005 and 2006 driven by the successful introduction of Zantac Maximum Strength, impactful advertising and promotional programs. We believe that Zantac has very positive consumer equity and a strong medical heritage.
DrSN: When will BI assume the marketing of Zantac?
Hennig: We assumed advertising and promotion responsibilities in January 2007 and hit the ground running. Right away, Zantac was being supported with national TV and radio advertising, couponing and value-added, special-pack programs.
DrSN: Does BI plan to keep the marketing expenditure on par with what Pfizer had historically committed to the brand, or will that marketing budget grow?
Hennig: Our vision for Zantac is to develop a strong and sustainable consumer brand. We are building upon and enhancing the programs that have been executed in the past…. Our focus right now is on a seamless transition for our retail partners and consumers. We are driving the business forward with a number of programs including national television and radio along with a variety of consumer promotion programs.
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