Johnson Johnson and Pfizer Inc.; Analysis of Agreement

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							                                          75756                       Federal Register / Vol. 71, No. 242 / Monday, December 18, 2006 / Notices

                                          FEDERAL TRADE COMMISSION                                 paper or electronic form, will be                     Pfizer’s Zantac H–2 blocker business;
                                                                                                   considered by the Commission, and will                (2) Pfizer’s Cortizone hydrocortisone
                                          [File No. 061 0220, Docket No. C–4180]
                                                                                                   be available to the public on the FTC                 anti-itch business; (3) Pfizer’s Unisom
                                          Johnson & Johnson and Pfizer Inc.;                       Web site, to the extent practicable, at               nighttime sleep-aid business; and (4)
                                          Analysis of Agreement Containing                         http://www.ftc.gov. As a matter of                    J&J’s Balmex diaper rash treatment
                                          Consent Orders To Aid Public                             discretion, the FTC makes every effort to             business.
                                          Comment                                                  remove home contact information for                      The proposed Consent Agreement has
                                                                                                   individuals from the public comments it               been placed on the public record for
                                          AGENCY:    Federal Trade Commission.                     receives before placing those comments                thirty (30) days for receipt of comments
                                          ACTION:   Proposed Consent Agreement.                    on the FTC Web site. More information,                by interested persons. Comments
                                                                                                   including routine uses permitted by the               received during this period will become
                                          SUMMARY: The consent agreement in this                                                                         part of the public record. After thirty
                                                                                                   Privacy Act, may be found in the FTC’s
                                          matter settles alleged violations of                     privacy policy, at http://www.ftc.gov/                (30) days, the Commission will again
                                          Federal law prohibiting unfair or                                                                              review the proposed Consent Agreement
                                                                                                   ftc/privacy.htm.
                                          deceptive acts or practices or unfair                                                                          and will decide whether it should
                                          methods of competition. The attached                     FOR FURTHER INFORMATION CONTACT:
                                                                                                   Michael R. Moiseyev, Bureau of                        withdraw from the proposed Consent
                                          Analysis to Aid Public Comment                                                                                 Agreement, modify it, or make final the
                                          describes both the allegations in the                    Competition, 600 Pennsylvania Avenue,
                                                                                                   NW., Washington, DC 20580, (202) 326–                 Decision and Order (‘‘Order’’).
                                          draft complaint and the terms of the                                                                              Pursuant to a Stock and Asset
                                          consent order—embodied in the consent                    3106.
                                                                                                                                                         Purchase Agreement dated June 25,
                                          agreement—that would settle these                        SUPPLEMENTARY INFORMATION: Pursuant                   2006, J&J proposes to acquire certain
                                          allegations.                                             to section 6(f) of the Federal Trade                  voting securities and assets comprising
                                                                                                   Commission Act, 38 Stat. 721, 15 U.S.C.               Pfizer’s Consumer Healthcare business
                                          DATES: Comments must be received on
                                                                                                   46(f), and § 2.34 of the Commission                   in a transaction valued at approximately
                                          or before January 11, 2007.
                                                                                                   Rules of Practice, 16 CFR 2.34, notice is             $16.6 billion (‘‘Proposed Acquisition’’).
                                          ADDRESSES: Interested parties are
                                                                                                   hereby given that the above-captioned                 The Commission’s complaint alleges
                                          invited to submit written comments.                      consent agreement containing a consent
                                          Comments should refer to ‘‘Johnson &                                                                           that the Proposed Acquisition, if
                                                                                                   order to cease and desist, having been                consummated, would violate section 7
                                          Johnson and Pfizer, File No. 061 0220,’’                 filed with and accepted, subject to final
                                          to facilitate the organization of                                                                              of the Clayton Act, as amended, 15
                                                                                                   approval, by the Commission, has been                 U.S.C. 18, and section 5 of the Federal
                                          comments. A comment filed in paper                       placed on the public record for a period
                                          form should include this reference both                                                                        Trade Commission Act, as amended, 15
                                                                                                   of thirty (30) days. The following                    U.S.C. 45, by lessening competition in
                                          in the text and on the envelope, and                     Analysis to Aid Public Comment
                                          should be mailed or delivered to the                                                                           the United States markets for the
                                                                                                   describes the terms of the consent                    research, development, manufacture,
                                          following address: Federal Trade                         agreement, and the allegations in the
                                          Commission/Office of the Secretary,                                                                            distribution, and sale of the following
                                                                                                   complaint. An electronic copy of the                  over-the-counter (‘‘OTC’’) medications:
                                          Room 135–H, 600 Pennsylvania                             full text of the consent agreement
                                          Avenue, NW., Washington, DC 20580.                                                                             (1) H–2 blockers, (2) hydrocortisone
                                                                                                   package can be obtained from the FTC                  anti-itch products, (3) nighttime sleep-
                                          Comments containing confidential                         Home Page (for December 12, 2006), on
                                          material must be filed in paper form,                                                                          aids, and (4) diaper rash treatments (the
                                                                                                   the World Wide Web, at http://                        ‘‘Products’’).
                                          must be clearly labeled ‘‘Confidential,’’                www.ftc.gov/os/2006/12/index.htm. A
                                          and must comply with Commission                          paper copy can be obtained from the                   II. The Parties
                                          Rule 4.9(c). 16 CFR 4.9(c) (2005).1 The                  FTC Public Reference Room, Room 130–                     J&J is one of the largest and most
                                          FTC is requesting that any comment                       H, 600 Pennsylvania Avenue, NW.,                      diversified suppliers of branded
                                          filed in paper form be sent by courier or                Washington, DC 20580, either in person                consumer health care products in the
                                          overnight service, if possible, because                  or by calling (202) 326–2222.                         world, as well as a manufacturer and
                                          U.S. postal mail in the Washington area                     Public comments are invited, and may               supplier of pharmaceuticals, medical
                                          and at the Commission is subject to                      be filed with the Commission in either                devices, and diagnostic products. In
                                          delay due to heightened security                         paper or electronic form. All comments                2005, J&J had worldwide net sales of
                                          precautions. Comments that do not                        should be filed as prescribed in the                  $50.5 billion. The more than 230 J&J
                                          contain any nonpublic information may                    ADDRESSES section above, and must be                  operating companies employ
                                          instead be filed in electronic form as                   received on or before the date specified              approximately 116,000 individuals in
                                          part of or as an attachment to e-mail                    in the DATES section.                                 57 countries and sell products
                                          messages directed to the following e-                                                                          throughout the world. In the consumer
                                          mail box: consentagreement@ftc.gov.                      I. Analysis of Agreement Containing                   products segment, J&J manufactures and
                                             The FTC Act and other laws the                        Consent Order To Aid Public Comment                   markets a broad range of OTC
                                          Commission administers permit the                           The Federal Trade Commission                       medications, women’s health products,
                                          collection of public comments to                         (‘‘Commission’’) has accepted, subject to             nutritional products, oral care products,
                                          consider and use in this proceeding as                   final approval, an Agreement                          and products used for baby and skin
                                          appropriate. All timely and responsive                   Containing Consent Orders (‘‘Consent                  care. With its Pepcid line of products,
                                          public comments, whether filed in                        Agreement’’) from Johnson & Johnson                   J&J is the leading supplier of OTC H–2
                                            1 The comment must be accompanied by an
                                                                                                   (‘‘J&J’’) and Pfizer Inc. (‘‘Pfizer’’), which         blocker acid relief products in the
                                          explicit request for confidential treatment,
                                                                                                   is designed to remedy the                             United States. J&J is also a leading
                                          including the factual and legal basis for the request,   anticompetitive effects that would                    supplier of OTC hydrocortisone-based
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                                          and must identify the specific portions of the           otherwise result from J&J’s proposed                  anti-itch medications under its Cortaid
                                          comment to be withheld from the public record.           acquisition of Pfizer Consumer                        and Aveeno brands and of OTC
                                          The request will be granted or denied by the
                                          Commission’s General Counsel, consistent with
                                                                                                   Healthcare. Under the terms of the                    nighttime sleep-aids under its Simply
                                          applicable law and the public interest. See              proposed Consent Agreement, the                       Sleep brand. J&J is also a leading
                                          Commission Rule 4.9(c), 16 CFR 4.9(c).                   parties will be required to divest: (1)               supplier of products for treating diaper


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                                                                     Federal Register / Vol. 71, No. 242 / Monday, December 18, 2006 / Notices                                           75757

                                          rash under its Balmex, Aveeno, and                    AR—and private label versions of                     account for a significant share of the
                                          Johnson’s No More Rash brands.                        some Pepcid, Zantac, and Tagamet                   market. Pfizer’s Cortizone is the market
                                            Pfizer is one of the largest                          products. J&J and Pfizer are the two                  leader among branded products, while
                                          pharmaceutical companies in the world.                  largest suppliers in this market.                     J&J’s Cortaid is the second leading
                                          Pfizer researches, develops,                              The Proposed Acquisition would                      branded product line. In 2005, sales of
                                          manufactures, and markets leading                       significantly increase market                         OTC hydrocortisone anti-itch products
                                          prescription medicines for humans and                   concentration and eliminate substantial               in the United States totaled
                                          animals, as well as consumer healthcare                 competition between the two leading                   approximately $120 million.
                                          products. In 2005, Pfizer had worldwide                 suppliers of OTC H–2 blockers in the                     The Proposed Acquisition would
                                          net sales of $51.3 billion. Pfizer                      United States. Branded manufacturers of               significantly increase market
                                          Consumer Healthcare, which J&J                          these products spend significant sums                 concentration and eliminate substantial
                                          proposes to acquire, is a global business               of money annually to create and                       competition between the two leading
                                          that researches, develops, manufactures,                maintain distinct brand equities. As a                suppliers of OTC hydrocortisone anti-
                                          and markets many well-known brands                      result of the acquisition, J&J would                  itch products in the United States. As a
                                          of OTC medications and oral care                        account for over 70% of the sales of                  result of the acquisition, J&J would
                                          products to consumers throughout the                    OTC H–2 blocker in the United States.                 account for over 55% of the sales of
                                          world. In 2005, Pfizer Consumer                         Here the evidence confirmed that                      OTC hydrocortisone anti-itch products
                                          Healthcare generated net sales of $3.9                  Pepcid and Zantac are close                         in the United States. Evidence indicates
                                          billion. Like J&J, Pfizer is one of the                 substitutes. Consumers have benefitted                that the parties’ products compete on
                                          leading suppliers of OTC H–2 blocker                    from the competition between Pfizer                   many levels, including pricing, shelf-
                                          acid relief products in the United States               and J&J on pricing, discounts,                        space, and advertising. By eliminating
                                          with its Zantac product line. Pfizer is                promotional trade spending, and                       competition between the two leading
                                          also the leading supplier in the United                 product innovation. Thus, unremedied,                 branded suppliers, the Proposed
                                          States of OTC hydrocortisone anti-itch                  the Proposed Acquisition likely would                 Acquisition would likely result in
                                          medications under its Cortizone brand,                 cause significant anticompetitive harm                higher prices, less promotional
                                          OTC nighttime sleep-aids under its                      by enabling J&J to profit by unilaterally             spending, and reduced product
                                          Unisom brand, and diaper rash                          raising the prices of one or both                     innovation. Although private label OTC
                                          products under its Desitin brand.                      products above pre-merger levels, as                  hydrocortisone anti-itch products
                                                                                                  well as reducing its incentives to                    account for a significant share of the
                                          III. OTC H–2 Blockers
                                                                                                  innovate and develop new products.                    market, private label products are less
                                             One of the relevant markets in which                                                                       close substitutes for a significant share
                                          to assess the competitive effects of the                IV. OTC Hydrocortisone Anti-Itch
                                                                                                                                                        of customers, and it is unlikely that
                                          Proposed Acquisition is the United                      Products
                                                                                                                                                        private label products would be able to
                                          States market for OTC H–2 blockers. H2-                    A second relevant product market in                reposition themselves to replace the
                                          receptor antagonists, more commonly                     which to assess the competitive effects               competition between J&J and Pfizer, the
                                          known as ‘‘H–2 blockers,’’ are a class of               of the Proposed Acquisition is the                    two largest branded competitors in this
                                          drugs for the prevention and relief of                  United States market for OTC                          market, that would be lost through the
                                          heartburn associated with acid                          hydrocortisone anti-itch products.                    Proposed Acquisition. Thus,
                                          indigestion. Originally a prescription                  Hydrocortisone is a corticosteroid that               unremedied, the Proposed Acquisition
                                          medicine, H–2 blocker products were                     reduces or inhibits the actions of                    likely would cause significant
                                          later approved by the FDA for sale                      chemicals in the body that cause                      anticompetitive harm by enabling J&J to
                                          without a prescription. H–2 blockers                    inflammation, redness and swelling.                   profit by unilaterally raising the prices
                                          work by blocking histamine from                         OTC products containing up to 1.0                     of one or both products above pre-
                                          stimulating the gastric parietal cells,                 percent hydrocortisone are approved by                merger levels, as well as reducing its
                                          thereby suppressing secretion of                        the FDA for topical application to treat              incentives to innovate and develop new
                                          stomach acid. Although there are other                  minor skin irritations, itching, and                  products.
                                          OTC acid relief medications, including                  rashes due to various conditions,
                                          antacids and proton pump inhibitors                     including dermatitis, eczema, and                     V. OTC Nighttime Sleep-Aids
                                          (‘‘PPIs’’), H–2 blockers are sufficiently               psoriasis. Although OTC topical                         A third relevant product market in
                                          different from these other products that                anesthetic and antihistamine products                 which to assess the competitive effects
                                          they are not close economic substitutes.                are available to treat minor skin                     of the Proposed Acquisition is the
                                          Currently, Prilosec OTC is the only PPI                irritations, itching and rashes, these                United States market for OTC nighttime
                                          available without a prescription. OTC                   products are not close economic                       sleep-aids. OTC nighttime sleep-aids are
                                          PPIs are not a close substitute for OTC                 substitutes for hydrocortisone anti-itch              non-prescription drugs that are
                                          H–2 blockers because they are indicated                 products because they work differently                indicated solely for the relief of
                                          for the relief of chronic heartburn and                 than hydrocortisone products. While                   occasional sleeplessness by individuals
                                          not for immediate relief of occasional                  these products may relieve symptoms of                who have difficulty falling asleep. The
                                          heartburn or indigestion. Antacid tablets               pain or itching, unlike hydrocortisone,               active ingredient in the best-selling
                                          and liquids are not a close substitute for              they do nothing to cure or prevent the                sleep-aids is a sedating antihistamine,
                                          OTC H–2 blockers because they are less                  actual underlying skin conditions such                such as diphenhydramine
                                          efficacious and do not provide as long                  as eczema or psoriasis.                               hydrochloride or doxylamine succinate.
                                          relief as H–2 blockers.                                    The United States market for OTC                   Prescription sleep-aids, such as
                                             The United States market for OTC H–                  hydrocortisone anti-itch products is                  zolpidem (Ambien), zaleplon
                                          2 blockers is highly concentrated.                      highly concentrated. There are only two               (Sonata) or eszopiclone (Lunesta), are
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                                          Today, this approximately $360 million                  significant branded competitors in this               not close economic substitutes for OTC
                                          market comprises four branded                           market: (1) Pfizer, with its Cortizone               nighttime sleep-aids. Consumers of OTC
                                          products—J&J’s Pepcid, Pfizer’s                        products and (2) J&J, with its Cortaid               nighttime sleep-aids likely would not
                                          Zantac, GlaxoSmithKline’s Tagamet,                    products. In addition, private label                  switch to prescription sleep-aids in
                                          and Reliant Pharmaceutical’s Axid                       hydrocortisone anti-itch products                     response to a 5 to 10 percent increase


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                                          75758                      Federal Register / Vol. 71, No. 242 / Monday, December 18, 2006 / Notices

                                          in the price of OTC nighttime sleep-aids                zinc oxide and (2) ointments containing               Developing and obtaining Food and
                                          because of the higher prices of                         the active ingredient petrolatum. There               Drug Administration approval for the
                                          prescription sleep-aids (particularly for               are no close substitutes for OTC diaper               manufacture and sale of a novel,
                                          those without insurance coverage) and                   rash creams or ointments.                             differentiated medication takes at least
                                          the inconvenience and cost of a doctor’s                  The United States market for OTC                    two (2) years. Once product
                                          visit (including delays for consumers                   diaper rash treatments is highly                      development is complete, a new entrant
                                          who have exhausted their                                concentrated. Today, three large,                     must invest extremely high sunk costs
                                          prescriptions).                                         established brands—Pfizer’s Desitin,                 on marketing, advertising, and
                                             The United States market for OTC                     Schering-Plough’s A&D, and J&J’s                     promotional allowances to create and
                                          nighttime sleep-aids is highly                          Balmex—account for over 70% of sales                 maintain consumer awareness and
                                          concentrated. J&J and Pfizer are the two                in this approximately $84 million                     acceptance of the new product. Given
                                          largest suppliers of branded OTC                        market. The rest of the market is                     the sales opportunities available in the
                                          nighttime sleep-aids in the United                      composed of several small, niche                      markets for the Products, coupled with
                                          States. Pfizer is the market leader with                brands. Private label products account                the significant investment necessary to
                                          its Unisom products, while J&J is the                  for a negligible share of the market.                 market and sell the Products, it is
                                          second leading supplier with its Simply                 Pfizer is the largest supplier of OTC                 unlikely that a new competitor will
                                          Sleep products. In 2005, sales of OTC                  diaper rash treatment products with its               enter any of the markets for the
                                          nighttime sleep-aids in the United                      Desitin line of products, while J&J is               Products.
                                          States totaled approximately $100                       the third largest supplier with its
                                          million.                                                Balmex, Aveeno, and Johnson’s No                   VIII. The Consent Agreement
                                             The Proposed Acquisition would                       More Rash brands. Neither the                           The Consent Agreement effectively
                                          significantly increase market                           Aveeno nor the Johnson’s No More                    remedies the Proposed Acquisition’s
                                          concentration and eliminate substantial                 Rash brands, however, account for a                  anticompetitive effects in the relevant
                                          competition between the two leading                     significant share of sales in this market.            markets discussed above. The Consent
                                          suppliers of OTC nighttime sleep-aids in                  The Proposed Acquisition would                      Agreement preserves competition in
                                          the United States. As a result of the                   significantly increase market                         these markets by requiring the
                                          acquisition, J&J would account for over                 concentration and eliminate substantial               divestiture of: (1) All assets related to
                                          45% of the sales of OTC nighttime                       competition between the two leading                   the Zantac H–2 blockers to Boehringer
                                          sleep-aids in the United States. In                     suppliers of OTC diaper rash treatment                Ingelheim Pharmaceuticals, Inc.
                                          addition, the evidence confirmed that                   products in the United States. As a                   (‘‘Boehringer Ingelheim
                                          Unisom and Simply Sleep are close                     result of the acquisition, J&J would                  Pharmaceuticals’’); and (2) all assets
                                          substitutes and have similar efficacy,                  account for nearly 50% of the sales of                relating to Cortizone hydrocortisone
                                          brand equity, and brand positioning.                    OTC diaper rash treatment products in                 anti-itch products, all assets relating to
                                          Consumers have benefitted from the                      the United States. Although there are                 Unisom sleep-aids, and all assets
                                          competition between Pfizer and J&J on                   additional suppliers of branded OTC                   relating to Balmex diaper rash
                                          pricing, discounts, promotional trade                   diaper rash treatment products in this                treatment products to Chattem, Inc.
                                          spending, and product innovation.                       market, the evidence confirmed that                   (‘‘Chattem’’) (the ‘‘Divested Assets’’).
                                          Although private label OTC nighttime                    Desitin and Balmex are perceived to                 These divestitures must take place
                                          sleep-aids account for a significant share              be close substitutes by consumers, and                within fifteen days after the closing of
                                          of the market, private label products are               evidence suggests that they are similar               the Proposed Acquisition or January 2,
                                          less close substitutes for a significant                in formulation, texture, and appearance.              2007, whichever is later.
                                          share of customers, and it is unlikely                  Consumers have benefitted from the                       The Commission is satisfied that
                                          that private label products would                       competition between Pfizer and J&J on                 Boehringer Ingelheim Pharmaceuticals
                                          reposition themselves to replace the                    pricing, discounts, promotional trade                 is a well-qualified acquirer of the Zantac
                                          competition between J&J and Pfizer, the                 spending, and product innovation.                     business. Boehringer Ingelheim
                                          two largest branded competitors in this                 Thus, unremedied, the Proposed                        Pharmaceuticals engages in the
                                          market, that would be lost through the                  Acquisition likely would cause                        research, development, sale and
                                          Proposed Acquisition. Thus,                             significant anticompetitive harm by                   marketing of branded pharmaceuticals
                                          unremedied, the Proposed Acquisition                    enabling J&J to profit by unilaterally                and OTC drugs, including well known
                                          likely would cause significant                          raising the prices of one or both                     brands such as Dulcolax, Spiriva,
                                          anticompetitive harm by enabling J&J to                 products above pre-merger levels, as                  Atrovent, Combivent, Flomax and
                                          profit by unilaterally raising the prices               well as reducing its incentives to                    Mirapex. Boehringer Ingelheim
                                          of one or both products above pre-                      innovate and develop new products.                    Pharmaceuticals is part of the
                                          merger levels, as well as reducing its                                                                        Boehringer Ingelheim Group, which is a
                                                                                                  VII. Entry                                            leading worldwide manufacturer of
                                          incentives to innovate and develop new
                                          products.                                                  Entry into the markets for the                     pharmaceuticals for humans and
                                                                                                  research, development, manufacture,                   animals and the eighth largest
                                          VI. OTC Diaper Rash Treatments                          and sale of the Products is unlikely to               manufacturer and marketer of OTC
                                             A fourth relevant product market in                  deter or counteract the anticompetitive               health care products worldwide.
                                          which to assess the competitive effects                 effects of the Proposed Acquisition.                  Boehringer Ingelheim Pharmaceutical’s
                                          of the Proposed Acquisition is the                      Each of the relevant markets is relatively            Consumer Health Care business has an
                                          United States market for OTC diaper                     mature and dominated by a few well-                   existing sales and distribution network
                                          rash treatment products. Consumers use                  established brand names. In such a                    that sells products through the same
                                          diaper rash creams or ointments to treat                market environment, a new entrant                     channels as Zantac is currently sold,
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                                          and prevent diaper rash and to protect                  faces a difficult task of convincing                  and has a strong record of integrating
                                          sore or chafed skin from moisture or                    retailers to carry its product, especially            product acquisitions successfully.
                                          irritation. Most diaper rash products fall              if the new product does not have a                       The proposed Consent Agreement
                                          into one of two categories: (1) Creams or               competitive advantage based on                        contains several provisions designed to
                                          pastes containing the active ingredient                 differentiated claims or efficacy.                    ensure the successful divestiture of the


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                                                                     Federal Register / Vol. 71, No. 242 / Monday, December 18, 2006 / Notices                                            75759

                                          Zantac business to Boehringer                          Assets for the brief transition period                summaries of proposed projects. To
                                          Ingelheim Pharmaceuticals by requiring                  between the time the Commission                       request more information on the
                                          that: (1) J&J divest to Boehringer                      approves the proposed Order and when                  proposed projects or to obtain a copy of
                                          Ingelheim Pharmaceuticals all assets                    the divestitures take place, which will               the data collection plans and
                                          relating to Pfizer’s Zantac line of                    not be later than January 2, 2007. Even               instruments, call 404–639–5960 and
                                          products, including all research and                    though such a period is relatively short,             send comments to Seleda Perryman,
                                          development, intellectual property, and                 maintenance of current supply,                        CDC Assistant Reports Clearance
                                          customer and supply contracts; (2) J&J                  advertising and promotional levels and                Officer, 1600 Clifton Road, MS–D74,
                                          and Pfizer take steps to ensure that                    activities at all times prior to divestiture          Atlanta, GA 30333 or send an e-mail to
                                          confidential business information                       is of paramount importance. The                       omb@cdc.gov.
                                          relating to Zantac will not be obtained                proposed Consent Agreement                               Comments are invited on: (a) Whether
                                          or used by J&J; (3) Boehringer Ingelheim                incorporates this plan in the Order to                the proposed collection of information
                                          Pharmaceuticals have the opportunity to                 Maintain Assets, detailing requirements               is necessary for the proper performance
                                          enter into employment contracts with                    for the assets that must be held separate,            of the functions of the agency, including
                                          certain key individuals who have                        services that may be shared with the                  whether the information shall have
                                          experience relating to Zantac; and (4)                 ongoing business, and the employee                    practical utility; (b) the accuracy of the
                                          certain management employees of Pfizer                  positions that are necessary for the held             agency’s estimate of the burden of the
                                          who were substantially involved in the                  separate business.                                    proposed collection of information; (c)
                                          research, development or marketing of                      The Commission has appointed David                 ways to enhance the quality, utility, and
                                          Zantac be precluded from working on                    Painter of LECG as Interim Monitor to                 clarity of the information to be
                                          competitive H–2 blocker products at J&J                 oversee the transfer of assets, the                   collected; and (d) ways to minimize the
                                          for a period of two years.2                             establishment of appropriate firewalls to             burden of the collection of information
                                            The Commission is also satisfied that                 prevent the transfer or use of                        on respondents, including through the
                                          Chattem is a well-qualified acquirer of                 confidential business information and to              use of automated collection techniques
                                          the Cortisone, Unisom, and Balmex                    ensure that J&J and Pfizer comply with                or other forms of information
                                          businesses. Chattem is a leading                        all other provisions of the Order. To                 technology. Written comments should
                                          manufacturer and marketer of a broad                    ensure that the Commission remains                    be received within 60 days of this
                                          portfolio of branded OTC healthcare                     informed about the status of the                      notice.
                                          products, toiletries, and dietary                       Divested Assets and their transfer, the               Proposed Project
                                          supplements, including brands such as                   proposed Consent Agreement requires
                                                                                                                                                          Pilot Project for a National Monitoring
                                          Icy Hot, Gold Bond, Selsun blue,                     J&J and Pfizer to file reports with the
                                                                                                                                                        System for Major Adverse Effects of
                                          Garlique, Pamprin, and BullFrog.                     Commission periodically until the
                                                                                                                                                        Medication Use During Pregnancy and
                                          Chattem’s products are among the                        divestitures are accomplished.
                                                                                                                                                        Lactation—New—National Center on
                                          market leaders in their respective                         The purpose of this analysis is to
                                                                                                                                                        Birth Defects and Developmental
                                          categories across food, drug and mass                   facilitate public comment on the
                                                                                                                                                        Disabilities (NCBDDD), Centers for
                                          merchandisers. Chattem has an                           proposed Consent Agreement, and it is
                                                                                                                                                        Disease Control and Prevention (CDC).
                                          experienced sales force with existing                   not intended to constitute an official
                                          relationships with major retailers and                  interpretation of the proposed Decision               Background and Brief Description
                                          has a strong record of integrating prior                and Order or the Order to Maintain                       This data collection is based on the
                                          product acquisitions successfully.                      Assets, or to modify their terms in any               following components of the Public
                                            The proposed Consent Agreement                        way.                                                  Health Service Act: (1) Act 42 U.S.C.
                                          contains several provisions designed to                   By direction of the Commission with                 241, Section 301, which authorizes
                                          ensure the successful divestiture of the                Commissioners Harbour, Kovacic and Rosch              ‘‘research, investigations, experiments,
                                          Cortisone, Unisom, and Balmex                        recused.                                              demonstrations, and studies relating to
                                          businesses to Chattem by requiring that:                Donald S. Clark,                                      the causes, diagnosis, treatment, control,
                                          (1) J&J divest to Chattem all assets                    Secretary.                                            and prevention of physical and mental
                                          relating to the Cortisone, Unisom,                                                                          diseases and impairments of man.’’ (2)
                                                                                                  [FR Doc. E6–21519 Filed 12–15–06; 8:45 am]
                                          and Balmex line of products,                                                                                 42 U.S.C. 247b–4, Section 317 C, which
                                                                                                  BILLING CODE 6750–01–P
                                          including all research and development,                                                                       authorizes the activities of the National
                                          intellectual property, and customer and                                                                       Center on Birth Defects and
                                          supply contracts; (2) J&J and Pfizer take                                                                     Developmental Disabilities. This section
                                          steps to ensure that confidential                       DEPARTMENT OF HEALTH AND
                                                                                                  HUMAN SERVICES                                        was created by Public Law 106–310,
                                          business information relating to                                                                              also known as ‘‘the Children’s Health
                                          Cortisone, Unisom, and Balmex                                                                              Act of 2000.’’ This portion of the code
                                                                                                  Centers for Disease Control and
                                          will not be obtained or used by J&J; and                                                                      has also been amended by Public Law
                                                                                                  Prevention
                                          (3) Chattem have the opportunity to                                                                           108–154, which is also known as the
                                          enter into employment contracts with                    [60Day–07–07AA]
                                                                                                                                                        ‘‘Birth Defects and Developmental
                                          certain key individuals who have                                                                              Disabilities Prevention Act of 2003’’.
                                          experience relating to Cortisone,                      Proposed Data Collections Submitted
                                                                                                  for Public Comment and                                   The use of a number of medications
                                          Unisom, and Balmex.                                                                                         during pregnancy is known to be
                                            The Order to Maintain Assets that is                  Recommendations
                                                                                                                                                        associated with serious adverse effects
                                          included in the proposed Consent                          In compliance with the requirement                  in children. However, because pregnant
                                          Agreement requires that J&J and Pfizer                  of Section 3506(c)(2)(A) of the                       and lactating women are traditionally
jlentini on PROD1PC65 with NOTICES




                                          maintain the viability of the Divested                  Paperwork Reduction Act of 1995 for                   excluded from clinical trials, and
                                            2 This firewall will prevent J&J from taking
                                                                                                  opportunity for public comment on                     because premarketing animal studies do
                                          competitive advantage of know-how, product
                                                                                                  proposed data collection projects, the                not necessarily predict the experience of
                                          development, marketing, and sales plans relating to     Centers for Disease Control and                       humans, little information is available
                                          Zantac.                                                Prevention (CDC) will publish periodic                about the safety of most prescription


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