On Jun. 27, 2006, Pfizer announced that it had reached a definitive agreement to sell its Pfizer Consumer Healthcare (PCH) business to Johnson & Johnson for $16.6 billion in cash, resulting in about $13.5 billion in after-tax proceeds.

Pfizer expected that during 2006 and 2007 it will purchase up to $17 billion of the Company’s common stock. This included up to $7 billion in 2006 and up to $10 billion in 2007, and reflects an increase in the company’s share purchase authorization from $5 billion in June 2005 to $18 billion, which had been approved by Pfizer’s Board of Directors.

As a result of its expanded share purchase activity, Pfizer expects the PCH divestiture to be non-dilutive to earnings in 2007 and accretive in 2008.