J&J CEO Rubs Pfizer's Face in Disastrous Consumer Products Sale of '06

(MoneyWatch)  Toldya: One year ago, BNET noted that Pfizer (PFE) must have been crazy to sell its consumer products unit to Johnson & Johnson (JNJ). The deal included brands such as Nicorette, Zantac and Benadryl. J&J's Q3 earnings report showed that the consumer products unit has done much better than its prescription drugs section: Sales are down by single-digit percentages; it's double-digit declines for drugs.

At the time, J&J predicted it would break even on the $16.6 billion transaction in 2009 -- i.e. now. J&J CFO Dominic Caruso told investors:

... the integration of the Pfizer Consumer Healthcare business and brands continues to be on track to meet or exceed our target of $500 to $600 million of cost synergies by 2009 and we still expect this transaction to be break even or modestly accretive by 2009 one year ahead of the original schedule.

Right on schedule, J&J CEO Bill Weldon tells the FT that Pfizer CEO Jeff Kindler agrees: The deal, done under previous chief Hank McKinnell, was a disaster, the Pfizer boss has repeatedly confessed:

"Jeff [Kindler] has told me numerous times his regrets," Mr Weldon says with a twinkle in his eye, referring to the head of Pfizer's lament at the sale by his predecessor of its consumer health division to J&J in 2006.

The WSJ asked Pfizer for a comment:

Kindler has said many times that he is focused on the future, not on the past, a Pfizer spokesman told us.

Note: That's not a denial.

• Related:
• Pfizer Got $160M in Tax Money to Build in Connecticut
• Viagra Now Available Intravenously
• Why Pfizer Wants Your Car-Sick Dog to Travel on Thanksgiving
• Pfizer Scientist Stabbed Wife After Job Loss, Police Say