[
For news and analysis of the consumer health product markets, to track the deals and understand the regulatory landscape, subscribe to "The Tan Sheet" here. We'll have more to come on this deal and what it means for the OTC marketplace].
Sanofi-Aventis gave itself an early Christmas present with the announcement it plans to buy U.S. consumer health products company Chattem for $1.9 billion.
Closure of the deal will mark a major player debuting in the U.S. consumer health market, with Sanofi bringing significant financial muscle to build on Chattanooga, Tenn.-based Chattem's business. Sanofi's will be the fifth largest consumer health business in the world, the firm says. Chattem's revenue in 2008 was $454.9 million
Sanofi CEO Chris Viehbacher sees the Chattem buy as a platform for Rx-to OTC switches and simultaneously announced plans to switch the antihistamine Allegra (fexofenadine) via the new U.S. consumer business. Allegra would compete most directly with JNJ's Zyrtec and Merck's Claritin.
Sanofi also plans to leverage existing Chattem brands globally. Key Chattem brands include Gold Bond skin care, Selsun Blue dandruff shampoo, the Icy Hot pain relief line and ACT mouthwash.
Chattem leadership, including CEO Zan Guerry, will be retained to head Sanofi's consumer business, the firm says.
Sanofi plans to make the cash tender offer of $93.50 a share in January and close the deal in the first quarter.
Find Wall Street Journal's coverage
here.