Johnson & Johnson and Merck Create New Joint Venture in Canada to Market OTC Pharmaceuticals.

NEW BRUNSWICK, N.J. & WHITEHOUSE STATION, N.J--(BUSINESS WIRE)-- Jan. 31, 1996--Johnson & Johnson and Merck & Co., Inc., two leading health-care companies, jointly announced today their intention to form a joint venture in Canada to market over-the-counter (OTC) pharmaceutical products. The new entity will be called Johnson & Johnson - Merck Consumer Pharmaceuticals of Canada.

Products to be contributed from Mercks Canadian business unit, Merck Frosst Canada Inc., include OTC switches of Merck prescription products; the first will be famotidine 10 mg, which has been launched as PEPCID AC (R) in the U.S., U.K. and several other markets for the prevention and treatment of heartburn. Well-known Frosst OTC brands that will be marketed by the Canadian joint venture include ENTROPHEN (R) enteric coated ASA for arthritic and joint pain, 222 (R) analgesics and FLEET ENEMA(R).

Additional products will be contributed from Johnson & Johnsons Canadian OTC unit, McNeil Consumer Products Co., and will include KAOPECTATE (R) antidiarrheal, HISMANAL (R) antihistamine and NICOTROL (R) nicotine smoking cessation patch. The new unit will be based in McNeils Guelph, Ontario facility.

The creation of a joint venture in Canada follows similar moves by the two companies in the U.S. in 1989 and later in Europe. In the U.S., the venture has marketed MYLANTA (R) antacid since 1990 and recently launched PEPCID AC (R). In Europe, the joint venture has entities in the U.K., France, Germany and Spain and distributor agreements covering Scandinavia and other territories.

Ian Lang, vice-president Sales and Marketing for McNeil, will also be assuming responsibilities for the Canadian joint venture. Mr. Lang said: "The creation of Johnson & Johnson - Merck Consumer Pharmaceuticals of Canada is truly a win/win proposition for all concerned. For our consumers and retail customers, it means combining the best elements of two of Canadas premier health-care companies. We will be able to accelerate new product launches and expand OTC product lines that are well known to Canadians. For our employees, it means creating new opportunities within a strengthened organization. For our parent companies and stockholders, it will mean providing a superior return on R&D and marketing investments by accessing Mercks very strong product pipeline and Johnson & Johnsons equally strong OTC market presence and capabilities."

PEPCID AC (R) (famotidine 10 mg) is a nonprescription form of Mercks highly successful prescription product PEPCID (R), and belongs to a class of drugs known as H2 receptor antagonists. These drugs act to reduce the flow of stomach acid, unlike antacids which neutralize acid already present in the stomach. PEPCID AC (R) has been extensively studied and has been found to both relieve heartburn -- a condition which affects four out of 10 Canadians -- and also prevent it from occurring. PEPCID AC (R) was launched in the U.S. in June 1995 and has already become the leading heartburn remedy. PEPCID AC (R) has been targeted for potential OTC status by the Canadian Health Protection Branch, which published an advisory in June 1995 for an expected launch later in 1996. -0-

ENTROPHEN (R), 222 (R) - Trademarks Merck Frosst Canada Inc.

PEPCID AC (R), PEPCID (R) - Trademarks Merck & Co., Inc., Merck Frosst Canada Inc., licensed user

FLEET ENEMA (R) - Trademark C. B. Fleet Co., Inc., Merck Frosst Canada Inc., licensed user

MYLANTA (R) - Trademark Johnson & Johnson - Merck Consumer Pharmaceuticals Co.

HISMANAL (R) - Trademark of Johnson & Johnson

KAOPECTATE (R) - Trademark of The Upjohn Company

NICOTROL (R) - Trademark of Kabi Pharmacia AB

CONTACT: United States

Johnson & Johnson Public Affairs Merck Public Affairs

Jeff Leebaw John Doorley

[phone] [phone]

OR

Johnson & Johnson IR Merck IR

Annie Lo Jim Hinrichs

[phone] [phone]

OR

Canada

McNeil Public Affairs Merck Frosst Public Affairs

Hilhne Carty J. Allister MacDonald

[phone] [phone]