Warner-Lambert Buys Glaxo Drug Venture Stake in U.S., Europe

Warner-Lambert Co. said Monday that it has completed its purchase of Glaxo Wellcome’s 50% stake in the U.S. and European units of the companies’ nonprescription drug venture for $900 million.

The sale of Glaxo’s interests in the venture in Canada, Mexico, Australia and New Zealand is expected to be completed in the third quarter for an additional $150 million, bringing the total price Warner-Lambert will pay to $1.05 billion.

The purchases, announced in December, would give Warner-Lambert sole control over former Wellcome drugs such as Sudafed and Actifed cold and allergy medicines and Neosporin first-aid ointments.

It would also solidify Warner-Lambert as one of the world’s largest over-the-counter drug marketers, putting other well-known products directly under the Warner-Lambert name, the company said. The firm also has such household names as Rolaids antacid and Benadryl antihistamine.

The new company, to be called Warner-Lambert Consumer Healthcare, would have the No. 1 or No. 2 position in 17 of the 22 categories in which it competes. For instance, it would be the top maker of upper-respiratory drugs and first-aid ointments in the United States and Britain, the company said.

“It represents a giant step on the path to achieving our goal of becoming the leading OTC marketer by the end of the decade,” said Melvin R. Goodes, chairman and chief executive of Morris Plains-based Warner-Lambert.

The joint venture was formed with Wellcome before that company was bought by Glaxo in 1995. Under the deal, Warner and Wellcome drugs were marketed by Warner-Lambert, which paid Wellcome about 30% of the profit.

A separate partnership, also created in 1993 between Warner-Lambert and Glaxo, would continue after a restructuring.

A major goal of Warner-Lambert’s separate partnership deals with Glaxo and Wellcome was to assist the two British companies in marketing their popular prescription products in the United States after regulators here gave permission to sell them over the counter. Glaxo’s ulcer treatment Zantac is the most prominent of the drugs.

Zantac 75, as the over-the-counter version is known, would continue to be the joint property of the two companies.

A separate plan to market Wellcome’s herpes drug Zovirax over the counter is stalled in the U.S. because of reluctance by the Food and Drug Administration to allow nonprescription sales.

Zovirax, which is sold outside the U.S. without a prescription, would continue to be marketed jointly by Warner and Glaxo.

Warner-Lambert shares rose 25 cents to $55.25 on the New York Stock Exchange.