J&J move to amalgamate Pfizer hits roadblock
Johnson & Johnson’s move to amalgamate the consumer healthcare business of Pfizer, acquired in June this year, has hit a road block in India with employees of Pfizer India protesting against the management’s "unclear stand" on job protection and business transition.
Sources say the employees are uncertain about their future and have expressed grave concern.
Pfizer India employees are learnt to have initiated a move to make a formal representation to the management to ensure job protection.
Pfizer India managing director Kewal Handa and senior management committee member (pharmaceuticals) K G Ananthakrishnan will address the sales force of Mumbai and the head office pharma colleagues on October 31.
A Pfizer India spokesperson said: "The companies are only at an early stage in the discussions. Any action we take will be in keeping with the international guidelines for this deal and India’s legal regulations. The culture and values at Johnson & Johnson and Pfizer are equally matched. Hence, we are jointly ensuring that the consumer health team will have a smooth transition."
J&J India was not available for comment.
An internal communication circulated among the over-the-counter (OTC, which is the way the consumer healthcare products are sold) marketing team of Pfizer by some employees has alleged that they are receiving ambiguous communication.
The employees have also alleged that the management is talking about Pfizer Consumer Health Products Division (CHPD) group going to Johnson & Johnson under the guise of a "franchise" arrangement but the picture is hazy.
In June this year, Johnson & Johnson had bought the OTC business of Pfizer Inc for $16.6 billion. This acquisition was expected to make J&J India’s largest OTC company with 10 blockbuster brands and over 70 leading consumer and pharmaceutical products in the combined market portfolio.
The flagship brands of the J&J-Pfizer combine includes Coldarin Plus and Coldarin Cough, Nizoral Anti-dandruff shampoo and Band-Aid from the J&J portfolio and Benadryl, Gelusil, Listerine mouthwash, Sudafed decongestant and Rolaids antacid from Pfizer’s OTC basket in India.
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