First-quarter
profits at Johnson & Johnson (NYSE:JNJ) beat analyst estimates thanks partly to the strong performance of Listerine, which J&J got as the prize item in a portfolio of consumer products it bought from Pfizer Inc. (NYSE:PFE) in 2006 for $16.6 billion, nearly 21 times Ebitda.
Naturally we noticed, having recently written on J&J's belief in consumer products, and the question of whether
Pfizer has changed its mind on the sector.
And then, seeking a little more info on what J&J has been doing with Listerine, we stumbled on something else altogether.
In a report on the financial positions of New Jersey gubernatorial candidates, the Newark Star-Ledger
reported on Sunday that Republican front-runner Chris Christie, a former U.S. attorney, "earned more than $15,000 in 2004 from royalty rights by investing in Listerine products, such as breath-freshening strips."
Hmm. Doesn't seem like Pfizer or previous owner Warner-Lambert Co. would have needed outside investors in Listerine. Maybe those rights were inherited? Or perhaps Christie invested in some entity that Listerine rights got passed down to?
We can only muse. But check out this1998
Web page on trade secrets, which cites the "Listerine Formula case," and this Time magazine
article from 1966 (!) on royalty income.
Apparently Dr. J.J. Lawrence, Listerine's inventor, signed a pretty strong royalty agreement in 1881 when he sold the product to J.W. Lambert. -
Kenneth Klee
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
