Reckitt Begins CEO Search As Kapoor Departs the Company He Reshaped

HEALTH BEAUTY WELLNESS

INSIGHT Pharma intelligence HBWhbw.pharmaintelligence.informa.com 28 January 2019 • No. 05 informa FROM THE EDITORS OF: Rose Sheet Pink Sheet Pharma intelligence Pharma intelligence

China and India. (Also see “Reckitt Expands ‘OTC’ Business, China Presence With Mead Johnson” - Pink Sheet, 13 Feb, 2017.) In 2011 before Kapoor took the helm, RB’s Health & Personal Care business generated sales of £3.1bn ($4.0bn), accounting for 33% of group turnover. By 2017, Health sales reached £5.1bn, generating 44% of RB’s total revenue.

EXPERIENCED SIGNIFICANT SETBACKS However, his tenure will also be defined by a number of significant setbacks for RB which have played out over the past three years in the form of a cyber-attack which hit OTC sales; infant nutrition manufacturing troubles; failed launches of Scholl foot-care products; and seeing its disinfectants linked to deaths in Reckitt Begins CEO Search As Kapoor South Korea. Furthermore, Kapoor was unable to Departs The Company He Reshaped strike a satisfactory agreement with Pfizer Inc. to acquire its Consumer Healthcare TOM GALLEN [email protected] business – an asset he had long admired. (Also see “GSK and RB desert Pfizer” - HBW akesh Kapoor is to retire from Reck- commented. “The start of a new decade Insight, 13 Apr, 2018.) itt Benckiser Group PLC by the end needs a fresh new leader.” Ultimately, RB lost out to rival GlaxoS- Rof 2019 after serving eight years Kapoor’s decision to step down has mithKline PLC, which through a joint ven- as CEO, in a career at the UK-based fast- been under discussion for a number of ture with Pfizer looks set to dominate the moving consumer goods giant which months, according to analysts at Morgan global consumer healthcare market with has spanned 32 years. The search is al- Stanley, with the catalyst for the move a share of 7.3%. (Also see “GSK And Pfizer ready underway for his successor, with “not related to recent events,” which have Start Consumer JV For Different Reasons, both internal and external candidates included manufacturing difficulties and a Aim For Similar Goals” - HBW Insight, 19 under consideration. cyber-attack on RB’s computer network. Dec, 2018.) With Kapoor’s departure, RB is not only As he prepares to depart, Kapoor’s Announcing RB’s most recent set of losing its CEO, but also the president of its legacy is surely the transformation of RB’s financial results, Kapoor bemoaned a newly-formed Health division, which has Health unit from an OTC drug and per- “desperately disappointing third quar- housed its OTC, dietary supplements and sonal-care player operating mainly in the ter.” RB reported group sales down by infant nutrition interests since the start of developed markets of Europe and North 2%, as Health sales were hit by the man- last year. America, to a consumer health giant pres- ufacturing fault at its Dutch infant nutri- “Having served as CEO for the equiva- ent in dietary supplements and infant nu- tion plant and Hygiene/Home revenues lent of two presidential terms, I felt it trition, as well as OTC, with a significant remained flat. was the right time for change,” Kapoor footprint in key emerging markets like CONTINUED ON PAGE 4

HEALTH BEAUTY WELLNESS FDA Has Model Drug Facts Labels Gillette’s New ‘Best Men Can Be’ Vegan Trend Propelling Growth of UK For OTC Naloxone, Wants Switch Ad Goes Viral, Drawing Mixed Praise, Dietary Supplements Market, p.14 Proposals, p.5 Boycott Threats, p.8 IN THIS ISSUE

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CONTINUED FROM PAGE 1 RB’s Rakesh Kapoor With RB warning at the time that infant nutrition sales would be (Source - RB) slowed in the fourth quarter and likely into early 2019, the firm’s annual results – due on 18 February – will give a better indication of the severity of the production issue. Despite the firm’s recent troubles, RB’s chairman Chris Sinclair said that under Kapoor’s leadership, the company had been “transformed from a household cleaning business to a world leader in consumer health and hygiene.” “Kapoor has been both the visionary and the architect behind this strategic portfolio transformation since the mid-2000s,” Sin- clair noted. With Kapoor insisting he remains “fully switched on and at the wheel” for the remainder of 2019, RB’s attention will immediately turn to identifying his successor.

“The market apparently has that he wanted the firm to become the first “meaningful branded player” in the global VMS market. the recently-departed Beiersdorf After Schiff, Kapoor’s next significant move was to create an OTC platform for RB in Latin America in 2013 through a collabo- CEO, Stefan Heidenreich, in its ration with Bristol-Myers Squibb Co., giving the firm marketing sights to replace Kapoor.” – rights to brands such as Tempra analgesics and the Picot antacid. In 2016, RB solidified its position in LATAM by taking full control of Martin Deboo, Jefferies the portfolio from BMS. While the Schiff and BMS deals added new strings to RB’s bow, the deal which will arguably define Kapoor’s tenure was the WHO WILL SUCCEED KAPOOR? $17bn acquisition of Mead Johnson in 2017, taking the firm into Top of the internal candidate list will likely be Rob de Groot, presi- the global infant nutrition market for the first time and doubling dent of RB’s Hygiene/Home business. An RB veteran of 30 years, the size of its consumer health portfolio. de Groot ran the firm’s Europe and North America operation for Enfamil and other Mead Johnson brands were “very much in six years before taking the helm at Hygiene/Home. the core of what consumer health stands for,” Kapoor insisted Another option for RB is chief financial officer Adrian Hennah, at the time. who joined the company in 2013 from medical equipment manufacturer Smith & Nephew. Earlier in his career, Hennah spent 18 RESTRUCTURE HIS FINAL ACT years at GSK. In what is likely to be remembered as his final significant act as Identifying potential internal candidates “is complicated by RB’s CEO, Kapoor at the start of 2018 restructured the company into aversion to exposing their second tier of management to the mar- two main divisions: Health and Hygiene/Home. (Also see “Schiff ket,” notes Jefferies analyst Martin Deboo. “So we have little idea Supplements, MJN Formulas, Other Reckitt Benckiser Consumer even of the candidates, let alone the bench strength.” Brands Get Their Own Home” - HBW Insight, 25 Oct, 2017.) Turning to external options, no obvious candidates immediate- “Our new organisational structure,” commented Kapoor at the ly jump out. “As for {appointing] an outsider, that feels difficult for time, “will provide RB with a platform for long-term growth and us,” says Deboo, “given the uniqueness of the RB culture.” out-performance across both business units. The mandate for “The market apparently has the recently-departed Beiersdorf both units will be to make sure we can create innovative products CEO, Stefan Heidenreich, in its sights,” notes Deboo. “Which feels which are relevant for new channels – such as e-commerce – and a bit like introducing Kraftwerk to Guns ‘n’ Roses.” new consumer segments.” Installing himself as president of Health, Kapoor was person- TRANSFORMED CONSUMER HEALTH OFFERING ally invested in the restructuring project and committed to Whoever does succeed Kapoor will hope to emulate his successes making it work. – particularly in broadening RB’s consumer health offering – and “Kapoor has given to our eyes consistent signals of wanting to achieve similar longevity. see through and sort out RB’s commercial delivery, its separation Having worked his way up at RB over a 24-year period, Kapoor project and the integration of Mead Johnson,” comments Jefferies began his tenure as CEO with a bang, acquiring for $1.4bn in 2012 Martin Deboo. Schiff Nutrition and taking RB into the fast-growing dietary sup- “So there is a sense of unfinished business to us,” notes Deboo, plements market for the first time with US-marketed brands such “and also one of mounting constraints around the hitherto mighty as MegaRed, Move Free and Digestive Advantage. RB machine: structurally lower sales growth, arguably maxed-out Since closing the Schiff deal, RB has launched the brands in new margins and the inability to land the longed-for Pfizer assets.” markets, across Europe and China, with Kapoor stating in 2017 Published online 17 January 2019

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FDA Has Model Drug Facts Labels For OTC Naloxone, Wants Rx-To-OTC Switch Proposals MALCOLM SPICER [email protected]

DA underscored its interest in pro- show consumers understand how to use step forward and use these tools to enable posals for allowing OTC access to the product without supervision of a health OTC availability of naloxone,” Hufford said. Fnaloxone for treating opioid over- care professional. FDA provided a template HRT’s work is supported partly by a dose by taking the unprecedented step of for that work by designing, testing and $3.42m grant opioid drug maker Purdue developing model Drug Facts labels that validating key labeling requirements to ap- Pharma LP made in September. Purdue potential sponsors can use for their own prove OTC sales of naloxone, which is an an is one of several drug companies and label comprehension studies. opioid-receptor antagonist indicated for distributors facing litigation in multiple The agency announced the release complete or partial reversal of overdose – states linked to their opioid product mar- of the model DFLs on Jan. 17 along with including respiratory depression. keting and commercial practices. publication of its review of independent “Some stakeholders have identified the The Pittsburgh-based organization is research contractors’ study of label com- requirement to perform these studies as a working with an undisclosed consumer prehension for OTC use of nasal spray and barrier to development of OTC naloxone health product company and has con- auto-injector products, the two forms of product,” Gottlieb said. tacted more than 100,000 retail locations naloxone currently available Rx-only “in FDA Center for Drug Evaluation and Re- in the US to establish warehouse, supply consumer-friendly format.” The contrac- search officials in May 2017 said the agen- chain and sales support for efficient distri- tors used a prespecified research design cy for one year had been developing and bution and available to consumers post- with more than 700 participants across testing labeling that instructs consumers approval. HRT has licensed a naloxone for- a range of potential OTC naloxone users on administering naloxone through intra- mulation from another undisclosed firm. with separate DFLs for a nasal spray and muscular injection or nasal delivery to a FDA published the model DFLs and an auto-injector. person experiencing an overdose. study results after conducting an advisory In FDA’s announcement, Commissioner committee meeting in December on in- Scott Gottlieb said agency staff concluded SPECIFICS NEEDED FROM creasing naloxone access. An official in the that the study showed the model DFLs, SPONSORS agency’s Division of Nonprescription Drug which include pictorials separate from the Because the DFLs are models, a sponsor Products said during the two-day meeting text, demonstrating how to administer ei- submitting an NDA for an OTC must still that FDA is recruiting sponsors of potential ther the nasal spray or injector, were well- modify and test the label instructions for OTC naloxone applications and interest understood by consumers and are accept- use that are specific to its product and dem- is high. However, committee members able for use by manufacturers in support onstrate adequate comprehension through and Rx naloxone manufacturers stated of OTC naloxone proposals (see sidebar). label-comprehension and human factor that pricing and the absence of physician- “Using this information, naloxone manu- studies testing as requested by the agency. patient communication about using the facturers can now focus their efforts on final “Apart from this product-specific infor- product could be impediments to a switch. label comprehension testing of how well mation, the model DFL otherwise con- Prescription naloxone products now consumers understand the product-spe- tains all the key information needed for an available include the Evzio auto-injector cific information that hasn’t been already untrained bystander to administer nalox- marketed by kaleo Inc. and Adapt Phar- tested in the model DFL,” Gottlieb said. one,” Gottlieb said. ma Ltd.’s Narcan Nasal Spray. The commissioner also noted that de- Harm Reduction Therapeutics Inc. al- The drug most commonly is adminis- velopment of the model DFLs was a first ready is working on an Rx-to-OTC switch tered by emergency medical personnel for the agency, reflecting alarm about the for naloxone and intends to launch a and by medical staff in hospitals. However, growing public health crisis of overdoses product in the US around mid-2020. national and community pharmacies have from opioid abuse, with the number of Michael Hufford, CEO of the Pittsburgh- begun making Narcan or generic inject- deaths reaching nearly 48,000 in 2017. based non-profit, says FDA is giving the able naloxone available without prescrip- “This is the first time the FDA has pro- industry a valuable assist with the model tions from pharmacists under policies set actively developed and tested a DFL for a DFLs and the study results. by states. Some states have made naloxone drug to support development of an OTC “Of course, the work is not yet done,” available nonprescription from pharma- product,” he said, adding it was “part of Hufford said in an email. cies, or through pharmacists’ prescriptions. our broader commitment to addressing He noted FDA explained in its announce- Agreements for dispensing naloxone are the opioid crisis.” ment that DFLs must be specifically modi- similar to programs that allow pharmacists Before submitting a new drug application fied and tested for a sponsor’s product. “Still, to provide flu shots to patients without or supplemental NDA for an OTC drug, firms at some point you have to ask, what more each patient having a prescription. must develop a DFL and conduct studies to can the agency do? It is up to industry to Published online 23 January 2019

hbw.pharmaintelligence.informa.com 28 January 2019 | HBW Insight | 5 HEALTH (OTC DRUGS)

Poland Kick Starts 2019 With Three Rx-To-OTC Switches

TOM GALLEN [email protected]

oland’s national medicines regulator, URPL, has started 2019 with a bang, Papproving three prescription-to- OTC switches in an effort to widen access to medicines in the country. Consumers can now purchase without a prescription in pharmacy or non-pharmacy outlets US Pharmacia’s Clotidal (clotrimazole); Polpharma SA’sPyrantelum Polpharma (pyrantel); and Sun-Farm’s Ci- clolack (ciclopirox olamine).

CLOTRIMAZOLE SWITCHED The switch of US Pharmacia’s Clotidal means Polish patients will be able to access for the first time without a prescription the antifungal clotrimazole to treat Warsaw is the home of Poland’s national drugs regulator, URPL. vaginal yeast infections. Topical forms of clotrimazole for external use are already available without a prescription in tablet Ciclolack is indicated to treat mild available OTC in Poland. form. URPL in 2017 switched Polpharma’s to moderate forms of onychomycosis, Clotidal 10mg/g vaginal cream is indi- Pyrantelum Medana, which offers pyrantel which causes nails to become thick, dis- cated for use in patients over the age of as a suspension for oral use. coloured and brittle, in adults aged 18 16 years, with a duration of treatment of Pyrantelum Polpharma 250mg is indi- years and above. six days. The product’s patient information cated to treat intestinal pinworm infections Poland is one of a small number of Eu- leaflet advises users that if there is no im- in adults and children from six years of age. ropean countries to switch ciclopirox ol- provement in symptoms after three days, Pyrantel in any form remains a prescrip- amine to OTC status. The medicine is avail- or if the infection does not clear after sev- tion medicine in the vast majority of Eu- able without a prescription in markets en days, they should consult their doctor. ropean markets, with notable exceptions such as Germany, Italy and Norway. Clotrimazole for vaginal use is available including France, Spain and Switzerland. Poland’s non-prescription medicines OTC widely across Europe, in markets market – including OTC drugs, food sup- such as Germany, Italy, the Netherlands TREATMENT FOR plements, medical supplies and pharma- and the UK. ONYCHOMYCOSIS ceutical cosmetics – was worth PLN14.2bn Completing URPL’s triumvirate of switches ($3.8bn) at gross retail prices in 2017, ac- PYRANTEL IN TABLET FORM is Sun-Farm’s fungal nail treatment Cic- cording to IQVIA. NOW OTC lolack, which is now available OTC in Po- Total value sales of the OTC market in Alongside Clotidal, URPL has also ap- land in lacquer form containing 80mg/g pharmacy – including drugs and supple- proved the Rx-to-OTC switch of Polphar- ciclopirox olamine. The active ingredient ments – increased by 5.2% to PLN13.7bn ma’s Pyrantelum Polpharma, making par- has been available OTC in Poland as a in the 12 months. asitic worm infection treatment pyrantel cream since 2012. Published online 23 January 2019 Australia Pharmaceutical Society Wants Pharmacy To ‘Draw A Line In Sand’ And Stop Supplying Homeopathy

DAVID RIDLEY [email protected]

ustralian pharmacy banner and of the country’s community pharmacies, “On behalf of the PSA, I call on all com- buying groups should do “what- said the president of the Pharmaceutical munity pharmacy banner and buying Aever is in their power” to remove Society of Australia (PSA), Chris Freeman, groups to draw a line in the sand and homeopathic products from the shelves in a strongly worded open letter. cease all activities that promote the stock-

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ing, promotion, recommendation, or mar- paign, which was set up in 2012 in the US SWELLING TIDE AGAINST keting of homeopathy,” urged Freeman. to promote wise decisions about the most HOMEOPATHY “Let us lead by example, so that the com- appropriate care and to reduce waste in With its pharmacy campaign, the PSA munity pharmacy sector is a health des- the healthcare system. joins a chorus of voices emerging in tination that consumers can consistently The second of ‘Five Things Clinicians the last 12 months questioning the ef- call upon to receive the best possible care.” and Consumers Should Question’ dealt ficacy of – and in many cases the ap- Freeman admonished pharmacy ban- with homeopathy, with the PSA recom- propriateness of reimbursing – homeo- ner and buying groups – which provide mending that: “Where patients choose to pathic treatments. not only economies of scale for com- access homeopathic treatments, health In December, France’s government munity pharmacy members but also professionals should discuss the lack of charged the country’s health authority marketing and financial services – for benefit with patients.” (see PSA Recom- with investigating the efficacy of homeo- including homeopathic products in their mendations To Choosing Wisely Australia) pathic medicines, with the aim of using “planograms, catalogs, specials, social Complementary medicines and thera- the findings to assess the appropriate- media communications, and allocated pies – such as dietary supplements – also ness of continued reimbursement of such stock ranges,” despite a lack of evidence came under fire in the document for hav- products. (Also see “French Public Throw for their efficacy. ing “limited evidence of efficacy.” Support Behind Homoeopathic Reimburse- “There is some evidence of efficacy ment “ - HBW Insight, 10 Dec, 2018.) HEALTH AT RISK for some complementary medicines,” At roughly the same time, one of Bel- “Many consumers are not aware that there the PSA admitted, “however this may be gium’s main health insurers, CM (the is no reliable evidence to support the use formulation and dose dependent, and Christian Mutuality), announced that it of homeopathic products to treat or pre- health practitioners are encouraged to would no longer reimburse homeopathic vent ailments,” Freedman pointed out. seek this information before recommend- remedies. “There may be a public perception that ing such products.” Homeopathic medicines were among these products have health benefits, plac- Overall, the PSA insisted that health pro- a number of health products described ing their health at risk if they choose ho- fessionals should “not recommend com- in November by the Spanish govern- meopathic products.” plementary medicines or therapies unless ment as “pseudo-therapies,” prompting While conceding that some might be- there is credible evidence of efficacy and it to take steps to stop these therapies lieve that accepting homeopathic prod- the benefit of use outweighs the risk.” from being available across the coun- ucts within pharmacy provided a “plat- Responding to the PSA’s intervention, a try in health centers and being used in form from which to have a matter-of-fact spokesperson for the Australian Self-Medi- studies at universities. (Also see “Spain conversation” about this lack of evidence, cation Industry (ASMI) emphasized to HBW reviews homoeopathy” - HBW Insight, 23 Freeman insisted that it had in fact be- Insight the importance of consumer choice Nov, 2018.) come “increasingly clear” that these con- and the role of pharmacies in “empower- Meanwhile in Germany, leading mem- versations were not taking place, and that ing” consumers to self-care, “regardless of bers of the country’s legislature in Sep- by stocking these products, pharmacists the levels of evidence” for healthcare prod- tember proposed that the country should were suggesting to consumers a “de facto ucts like homeopathic medicines. revoke the ‘medicinal’ status it applied to endorsement of their appropriateness.” Pharmacies were a “vital destination” homeopathic products, so they no longer Freedman urged pharmacy banner and for consumers practicing self-care, the qualify for reimbursement by the statu- buying groups to join the PSA’s mission to spokesperson continued, and pharma- tory health insurance system. (Also see “eradicate” pharmacy practices that might cists played an “important role” in provid- “Homoeopathy blasted by legislators in “compromise patient care and the phar- ing accurate information and advice to Germany” - HBW Insight, 21 Sep, 2018.) macist’s reputation as a trusted, patient ensure quality use of medicines. And finally, the UK’s high court in June focused healthcare professional.” Pharmacies were the place where con- upheld a decision by the National Health As part of this mission, the PSA in De- sumers could acquire information about Service (NHS) to withdraw reimbursement cember published its contribution to products they were interested in purchas- for homeopathy, after the British Homeo- Choosing Wisely Australia, a local version ing, the spokesperson added, and advice pathic Association made a legal challenge of the American Board of Internal Medi- about more suitable products should those against NHS England. cine Foundation’s Choosing Wisely cam- they were inquiring about be inappropriate. Published online 22 January 2019

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Gillette’s New ‘Best Men Can Be’ Ad Goes Viral, Drawing Mixed Praise, Boycott Threats RYAN NELSON [email protected]

osted to YouTube Jan. 13, Gillette’s video ad “We Believe: The Best Men Can Be” already is climbing toward 20m views, pro- Pviding an explosion of fresh exposure to a men’s grooming brand that’s been struggling of late amid increased competition from youthful upstarts with aggressive value propositions and baked-in Millennial appeal. But the response to the Procter & Gamble Co. brand’s short film has been highly polarized. As of midmorning Jan. 18, it had drawn 535,000 likes and close to 1m dislikes, with some accusing the company of removing negative feedback. Those in the “like” camp applaud Gillette’s move as a bold and necessary step in the right direction, while the detractors rail against a perceived transparent attempt to cash in on the politi- cally charged moment with what amounts to a shot at the male gender, rather than a challenge to make routine practice of what once was considered gallantry. “As a company that encourages men to be The roughly two-minute ad depicts various examples of be- havior commonly lumped under the umbrella term “toxic mas- their best, we have a responsibility to make culinity,” from bullying to sexual harassment and chauvinistic workplace conduct. The montage is interspersed with snippets sure we are promoting positive, attainable, of national media coverage around the #MeToo movement and inclusive and healthy versions of what it high-profile allegations of sexual assault. The pacing shifts at the midway mark to show men intervening means to be a man.” – Gillette “to say the right thing, to act the right way,” focusing in particular on the example being set for young boys, i.e., tomorrow’s generation of men. “It’s only by challenging ourselves to do more that we can get closer to our best,” the closing text reads. sponsible and, yes, “woke” message to a global audience. In their “Well done on making a statement commercial Gillette,” says view, the outrage Gillette’s ad has provoked is exactly why the one YouTube commenter. “What we do today definitely sets the conversation is worth having. standard for future generations.” Others believe the creative may have been well-intentioned but Others aren’t nearly so pleased, attacking the ad as virtue signaling ultimately misses the mark in trying to unpack so complex an is- that insults Gillette’s core consumer base by vilifying men as a group. sue in under two minutes. The hashtag #BoycottGillette has begun trending accordingly. If P&G/Gillette’s main thrust was to get people talking, as com- Online critics smell hypocrisy from a brand that historically has pany reps suggest, the ad has certainly done that. The commen- banked on alpha male archetyping to sell razors, with ads like this tary continues to pile up, and in the space of this article’s drafting one from the late 1980s linking a smooth shave to triumphant the video has exceeded 20m views. It’s also crossed the 1m dis- achievements in business, athletics and romance. likes threshold. On its website, Gillette hints at the possibility of sins in its past, Gillette Brand Director Pankaj Bhalla told Fast Company that the casting the campaign as a product of its evolving outlook in a brand wasn’t trying to “court controversy” with the video. Accord- changing world. ing to Bhalla, “the intention is to say, ‘All of you guys are great; how “As a company that encourages men to be their best, we have a about you be an even better role model for your kids?’ That’s it. responsibility to make sure we are promoting positive, attainable, That’s the ad.” inclusive and healthy versions of what it means to be a man. With Investors no doubt will be anxious to see how the brouhaha that in mind, we have spent the last few months taking a hard look pans out from a business perspective. In a November 2018 In- at our past and coming communication and reflecting on the types vestor Day presentation, P&G execs cited progress in the firm’s of men and behaviors we want to celebrate,” the brand explains. grooming business turnaround, while acknowledging continued challenges ahead. 2019: THE YEAR OF ‘CAUSE ABOVE CREATIVE’? Faced with growing competition from direct-to-consumer Reactions in the media vary as well. For some, the ad represents a startups and subscription-based services the likes of Dollar savvy bid for fresh relevance that also happens to promote a re- Shave Club, Gillette has been innovating in new directions

8 | HBW Insight | 28 January 2019 © Informa UK Ltd 2019 BEAUTY (COSMETICS)

Divided Opinion On Gillette’s ‘We Believe’ Ad Reactions culled from YouTube and Twitter show a marked split between lovers and haters of Gillette’s latest messaging.

Pro-Gillette Anti-Gillette “Why is Gillette, a $16 billion net worth company, on some “Proud of you Gillette and proud to be your customer. You give moral high ground trying to paint men in a negative image people hope for corporate America.” – @S_LeGresley that needs to change?” – sretlaw99 “Thank you Gillette for standing out and keeping the conversation “So sick of the man bashing. You’re bashing me, my dad, my going. We could all improve ourselves.” – @freeagain1970 son, my brothers. So buh bye Gillette.” – Brian Michaels “This is wonderful to see. I'm the Mum of 2 small boys (2 & 6) and seeing a men's brand send out this kind of message made me “GET WOKE, GO BROKE” – LightningNC weep with joy.” – @hanhan44 “Love the new campaign. We have to start somewhere. It may not “I'm starting to get so tired of political correctness. It's be perfect for everyone but we have to begin the conversation. everywhere, everytime.” – Sonia Nevermind Teaching kindness is never a mistake.” – @paramedicsparky “Literally brought tears to my eyes. I’ve been sexually harassed since I was 11 and it’s devastating. Thank you for this. You will gain “Just the type of social commentary I look for in my shaving a lot of female customers to replace any jerks you lose.” – gel.” – Fevir @AliciaHollinger “Great commercial. Thanks for showing that men are the solution, “I don't resent being lectured about doing more, as a rather than labeling all men as the problem. I hope this inspires community of men, to police our behaviour. We absolutely many men when they look in the mirror to shave that it's another need to. ... I do resent being lectured on that by a company day to eschew excuses and embrace opportunities to be their best, that charges women more than men for the same product, to be heroes.” – @RuthTweetX but pink.” – @Calamity_Payne "Thank you, Gillette, for insulting all of the great people in my “Gillette is addressing a real issue. They’re not saying every man is life that have inﬂuenced me in so many positive ways and bad, they’re just saying maybe you should think about how you will continue to do so, simply because they're the wrong behave, because it DOES have an effect on others.” – @juhotee gender. Thank you for adding to the toxicity and sexism that you claim to be against.” – Liz S “To the privileged, the shift towards equality often feels like "The best a ma'am can get." – Dogac Dagi oppression.” – @brickski “Will be buying @Gillette from now on!" – @deja1422 “The best a man can forget.” – Bryan Verberg “I am a huge fan of this ad. Great job Gillette. Super impressive.” – “BOYcott Gillette. MEN use Rambo knives to shave!!!” – @BigPicture45 Shawman Null

with its razor platform and adapting behind gun control advocacy, compa- Fever PR’s Creative Director Jo Chap- its distribution model while exploring nies increasingly are taking stands on pel, who questions the execution if not new “bestness” angles in its advertis- social issues. the intent of Gillette’s ad, predicted in an ing, shining a light for example on the In the cosmetics sector, UK-based Lush exchange with PRWeek that 2019 is going disadvantages overcome by Seattle Se- Ltd. has allied itself with the trans rights to be the year of “Cause Above Creative – ahawks linebacker Shaquem Griffin. movement, while Tarte Cosmetics has where the ambition to make work of cre- Related ads from the brand on YouTube taken aim at bullying with its #KissAnd- ative merit is superseded by the drive to have racked up around 400,000 views af- MakeUp initiative. make a point.” ter four months. According to recent polls, this is Cosmetics companies would be well- From Nike, Inc.’s “Believe In Some- what consumers want, with nearly advised to proceed with care in this cli- thing” campaign last year featuring two-thirds of consumers around the mate. They might at least consider waiting former NFLer Colin Kaepernick to Levi world now “buying on belief,” accord- to see how Gillette fares once the current Strauss & Co. announcement in Septem- ing to global communications market- furor subsides. ber that it would be placing its weight ing firm Edelman. Published online 18 January 2019

hbw.pharmaintelligence.informa.com 28 January 2019 | HBW Insight | 9 BEAUTY (COSMETICS)

Doc’s Controversial Ideas About UV Benefits Could Gain Traction As Sunscreen Deterrents Add Up LAUREN NARDELLA [email protected] RYAN NELSON [email protected]

“I’m a dermatologist. My day job is saying to people, ‘You’ve got skin cancer, it’s caused by sunlight, don’t go in the sun.’ I actually think a far more important message is that there are benefits as well as risks to sunlight.” Weller continued, “Yes, sunlight is the major alterable risk factor for skin cancer, but deaths from heart disease are a hundred times higher than deaths from skin cancer. And I think that we need to be more aware of [this], and we need to find the risk-benefit ratio. How much sunlight is safe, and how can we finesse this best for our general health?” Outside magazine reported Jan. 10 that Weller’s largest study – tracking the blood pressure of 340,000 individuals around the US – is slated for publication this year. According to the dermatologist, the findings show that subjects in sunnier parts of the country tend to have lower blood pressure after accounting for factors such as age and skin type. Other dermatologists cited in the Outside article take oppos- ing views on the significance of Wellers’ data and their sun safety he sunscreen industry continues to have a powerful ad- implications. vocate in the dermatology community overall, but shift- Nevertheless, the evidence is enough to persuade Rowan Ja- T ing viewpoints among health professionals regarding cobsen, the article’s author, to take his chances in the sun – “if not the virtues versus risks of UV exposure could contribute to con- naked, then reasonably close. Starting today, I’m stepping into the sumers second-guessing the benefits of sunscreens and choos- light,” he says. ing to go without. This seems particularly possible as controversy grows around “Yes, sunlight is the major the environmental and/or human safety of certain UV filters and the reliability of brands’ SPF claims. alterable risk factor for skin According to the American Academy of Dermatology, “you cancer, but deaths from heart need to protect your skin from the sun every day, even when it’s cloudy.” Consumers can do this by applying sunscreen with an SPF disease are a hundred times higher of at least 30 and broad-spectrum (UVB/UVA) protection, among other defensive measures, AAD says on its website. than deaths from skin cancer.” – The organization’s counterparts around the globe are in agreement that sun exposure is the primary cause of skin cancer, with Richard Weller, dermatologist reported incidence on the rise worldwide. However, growing recognition of the sun’s salubrious proper- NEED A REASON TO QUIT SUNSCREEN? TAKE ties have some dermatology groups taking a more nuanced ap- YOUR PICK proach to their sun safety guidance. Outside’s mission is to inspire active participation in the great out- For example, the British Association of Dermatologists notes doors, but consumers beyond the magazine’s reach could take a “it can be hard to get the required level of vitamin D from the similar message from Weller’s research, reading the doctor’s ob- diet alone, which is why we do not say you should avoid the servations as a reason to ditch sunscreen and take up sunbathing. sun altogether.” If they required any further nudging in that direction, those Then there’s Richard Weller, a University of Edinburgh der- tempted to turn their back on sunscreen could look to Hawaii’s matologist, who’s been making ripples in recent years with his 2018 legislation banning oxybenzone- and octinoxate-con- research into the potential heart-healthy effects of UV radia- taining formulas due to the ingredients’ perceived coral-killing tion – specifically the blood pressure-lowering nitric oxide ac- properties, or emerging studies suggesting that those UV filters tivated in UV-dosed skin – which in his mind may outweigh aren’t the only ones that pose potential environmental risks. sun-exposure dangers. Conflicting recommendations from leading NGOs also could He discussed his research on the subject in a 2012 “TED Talk” sow confusion and help convince consumers that sunscreens in Glasgow. aren’t worth the trouble. In 2018 reports, the Environmental Work-

10 | HBW Insight | 28 January 2019 © Informa UK Ltd 2019 BEAUTY (COSMETICS)

ing Group advised against chemical-based sunscreens due to sus- about sunscreen’s role in skin cancer prevention and the respon- pected human health threats, while Consumer Reports identified sible takeaways from studies regarding UV exposure benefits. mineral options as more likely to carry inflated SPFs. (Also see AAD remains a promising partner for industry. In a May 2018 “NGO Sunscreen Reports Leave Consumers With Less-Than-Stellar statement, the group’s President Suzanne Olbricht expressed Options” - HBW Insight, 23 May, 2017.) concern over Hawaii’s then-proposed oxybenzone/octinoxate Incidentally it doesn’t help matters that FDA has rejected ev- bill, noting that skin cancer risks could spike due to restricted sun- ery application in recent memory to make new sunscreen ingre- screen access and the potential stigma around sunscreens that dients available to US consumers and potentially refresh interest could result from the prohibitions under consideration. in the category. “The AADA wants the public to know that sunscreen remains In this climate, more than ever, sunscreen manufacturers and a safe, effective form of sun protection [and] an important tool in their trade group advocates would be well-served to coordinate the fight against skin cancer,” Olbricht said. with allies in the dermatology community to educate consumers Published online 21 January 2019 Avoiding ‘Kiss Killers’ – GSK Offers German Consumers New Oral Hygiene Products For The Festival Season

DAVID RIDLEY [email protected]

n preparation for the coming German festival season – Valentine’s Day in IFebruary and Carnival in March – Glax- oSmithKline PLC (GSK) is launching in the country six new toothbrushes, as well as reminding consumers of its recently-switched Zovirax Duo cold-sore treatment. GSK is looking to take advantage of the Carnival season – which is renowned in Germany for its association with romance and fancy dress – to launch new toothbrushes and to promote oral hygiene. The German Carnival session – also GSK relaunched ts Sensodyne and added “Love Edition” DR Best toothbrushes in Germany. known as the “Fifth Season” – begins every year on 11 November and finishes on Ash To help Germans avoid these “kiss kill- cies, the toothbrushes had a recommend- Wednesday of the following year (6 March ers,” GSK has re-launched its Sensodyne ed retail price (RRP) of €2.99 ($3.41), €2.99 in 2019). range of toothbrushes and added a spe- and €2.79 respectively. Although celebrations can start as cial ‘Love Edition’ to its Dr Best interdental For “undisturbed kissing” on Valentine’s early as the beginning of January, the toothbrush brand. Day, GSK revealed it would be also launch- actual Carnival week starts on Alt- The Sensodyne ProSchmelz toothbrush’s ing two new ‘Love Edition’ extensions of its weiberfastnacht; a day when – accord- “tapered micro-fine bristles” ensured “ef- Dr Best brand of interdental toothbrushes. ing to medieval tradition – women take fective cleaning” while being “extra soft” Designed to “penetrate deep into inter- power, cut off the ties of men no mat- on enamel, GSK explained, while the Sen- dental spaces,” GSK pointed out that the ter what their social status and can kiss sodyne Sensitive MultiCare Expert tooth- “carefully rounded” bristles of its Dr Best them in compensation. brush was ideal for anyone with “pain- Interdent Active toothbrushes – which However, when it came to kissing, GSK sensitive teeth.” came in a double pack – were arranged insisted that bad oral hygiene and bad The Sensodyne Complete Protection to portray when placed side by side a red breath were “absolute deal breakers.” toothbrush offered a “new brush configu- Valentine’s Day heart. “If you want to be considered a very ration” with “three zones” – tapered bris- Available in ‘his’ or ‘her’ versions, GSK good kisser, you should be careful, be- tles on the outside, rounded bristles on claimed that the Dr Best Vibration Polimed cause there are lots of traps,” GSK ex- the inside and shorter bristles at the head toothbrush’s “20,000 vibrations per min- plained. “A forgotten shave, a garlic ba- end – to “clean thoroughly and gently at ute” and circular bristles with “wave-like guette the day before or a salad with black the same time.” brush cut” cleaned gums “nine times bet- quinoa for lunch – none of these provide Available from March in German drug- ter” than other toothbrushes. ideal conditions for the perfect kiss.” stores, retail outlets and selected pharma- CONTINUED ON PAGE 14

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CONTINUED FROM PAGE 11 tiplication but also inflammation. Further- All three toothbrushes had the stan- more, when applied at “first tingling,” Zo- dard features of the Dr Best range – such virax Duo could even prevent the visible as the ‘ball-and-socket’ joint at the base of symptoms such as blisters, sore and crust the toothbrush head and the three types from appearing at all. of bristles in the head to clean tooth sur- Zovirax Duo was first launched in Ger- faces, interdental spaces and gum lines – many last year, after being switched from which GSK said had made the brand “mar- prescription-only to pharmacy-only sta- ket leader” in Germany. tus the year before. (Also see “Zovirax The Dr Best Interdent Active double pack launched OTC in Germany” - HBW Insight, has an RRP of €3.59 and the Dr Best Vibra- 23 Mar, 2018.) tion Polimed single pack an RRP of €4.99. GSK had received a positive recom- In addition to its new toothbrushes, mendation for the switch of Zovirax Duo GSK is also reminding consumers of the GSK’s Zovirax Duo launched last year in – which contains 5% acyclovir and 1% ‘romance-saving’ powers of its recently- Germany. hydrocortisone – from Germany’s expert switched cold-sore treatment, Zovirax Duo. committee for prescription in early 2017 At Carnival time, glasses and bottles GSK added, weakening the immune sys- (OTC bulletin, 3 February 2017, page 18). were “shared with people you have just tem and thus “encouraging an outbreak.” Zovirax Duo is based on Swedish firm met,” GSK warned, adding that it was “Be prepared and have Zovirax Duo al- Medivir’s Xerclear acyclovir and hydrocor- therefore “no wonder” that this was the ways at hand,” GSK advised. “Whether for tisone topical cold-sore treatment. “high season” for infectious diseases such attending a carnival or parade, or just go- GSK entered into an agreement with as colds and cold sores. ing to the pub, the practical 2g tube fits in Medivir in June 2010 to commercial- In addition to the sharing of saliva, pos- any party bag and can be taken anywhere.” ize and distribute Xerclear as a non-pre- sible trigger factors “lurk everywhere,” the Zovirax Duo’s “unique active ingredient scription product under the Zovirax name firm continued, such as “lack of sleep, ex- combination” of antiviral acyclovir and across multiple markets (OTC bulletin, 30 haustion and increased alcohol consump- anti-inflammatory hydrocortisone, GSK June 2010, page 2). tion.” These all put “stress on the body,” explained, not only combated virus mul- Published online 14 January 2019 � WELLNESS� Vegan Trend Propelling Growth Of UK Dietary Supplements Market

TOM GALLEN [email protected]

apitalizing on the growing interest in veganism among UK consumers Top-ﬁve UK supplements in 2018 Cshould be top of mind for dietary supplement players in 2019, suggests data Percentage of UK VMS users that took these individual supplements in 2018 gathered by market researcher Mintel.

A survey of 2,000 UK consumers found Cod Liver Oil 37 that for 11% of vitamin, mineral and supplement (VMS) users, a vegan/vegetarian claim was an “important factor when choosing Calcium 29 one vitamin or supplement over another,” Mintel notes. Manufacturers of calcium and iron supplements in particular should take Iron 28 heed, Mintel advises, with the high-single- digit growth in usage of both product types Magnesium 16 in 2018 attributable to the increasing uptake of vegan and vegetarian diets.

Zinc 16 VEGANISM BOOSTS

SUPPLEMENT USAGE 0 5 10 15 20 25 30 35 40

“Calcium and iron usage among VMS us- Data based on Mintel survey of 2,000 UK consumers aged 16+ ers has shown an impressive rise in the

last year,” Mintel reports, “with calcium usage increasing 9 percentage points to The UK supplements market in 2018 29% in 2018, and iron up 6 percentage UK consumers' usage of vitamins, minerals and supplements in 2018, according to Mintel points to 28%.” Broken down by age group, the larg- 6 in 10 est increase for calcium was seen among Proportion of UK consumers who took a VMS product in 2018 25-34-year-olds – up 14 percentage points to 39% – while for iron, it was 35-44 year 26% olds who upped their intake the most, by Percentage of UK consumers who have never used VMS 14 percentage points to 36%. “The trend towards meat reduction di- 38% ets – including both strict vegan diets and Percentage of female VMS users that took a supplement daily in 2018 the more lenient flexitarian approach – is likely boosting usage of iron,” comments Mintel research analyst Anita Winther. Less than 1 in 3 “With as many as half of meat eaters be- Proportion of male users that took VMS every day lieving their red meat intake should be limited, it is likely that people are looking 56% to supplements to fill the iron gap left if Percentage of VMS users that took a multivitamin in 2018 they are reducing the amount of red meat they eat.” As for calcium, Winther suggests that More than 3 in 10 a notable rise in usage in 2018 is “linked Proportion of VMS users that took vitamin D in 2018, making it the UK's number-one single to the growing focus on plant-based vitamin supplement foods, both in terms of vegan diets and dairy avoidance.” 37% Buoyed by the rise of veganism, calcium Percentage of VMS users that took cod liver oil in 2018, making it the UK's number-one and iron were the second- and third-most individual supplement popular individual supplements in the UK Data based on Mintel study of 2,000 UK consumers aged 16+ in 2018, taken by 29% and 28% of VMS users in the 12 months. “A long-term favorite of Brits” cold liver UK consumers on the whole have em- drivers of this single-digit increase, oil/fish oil remained the nation’s number- braced VMS, with only 26% of the popula- with usage rising from 22% in 2017 to one supplement, according to Mintel, tion never having taken such a product. In 35% in 2018. taken by 37% of consumers. Rounding out 2018, six in 10 consumers took VMS, with “Vitamin D has proved to be a star the top-five, magnesium and zinc were in half of this number daily users. Women performer in the sector, with its health joint fourth place, with both supplements were “considerably more likely than men” benefits during the winter months con- taken by 16% of VMS users. to use VMS, Mintel points out, at 38% tinuing to be a popular topic,” Winther compared to 29%. points out. “This will have undoubtedly VMS SALES EXCEED £0.4BN Confidence in the efficacy of VMS ap- helped boost usage, raising its profile Increasing uptake of calcium and iron sup- pears high, with Mintel reporting that sev- among Brits.” plements helped total VMS value sales in en in 10 consumers believe supplements After vitamin D, vitamin C was the UK’s the UK to hit £442m ($569m) in 2018, Min- are a better source of vitamins and miner- second most popular vitamin supplement tel reports, up by 6% compared to 2013. als than fortified foods and drinks. in 2018, Mintel says, taken by 27% of VMS The next five years is expected to see a users. Rounding out the top five were: vi- “steady rise in value sales,” claims Mintel, VITAMIN D OVERTAKES C tamin B complex (15%), vitamin A (12%) with the country’s VMS market growing a While calcium and iron drove the sup- and vitamin E (10%). “healthy 8%” to reach £447m in 2023. plements portion of the market in 2018, Published online 22 January 2019 “Interest in health is expected to be increased vitamin D uptake helped to a major driver for VMS sales, while the push up the vitamins segment, accord- ageing population should continue to ing to Mintel. drive growth in the over-50s segment,” Usage of vitamin D advanced by 7 LET’S GET Winther explains. “The ongoing focus percentage points to 33% of VMS con- on health, both among consumers and sumers in 2018, helping it to overtake in the public debate, is seeing people vitamin C as the UK’s number-one sin- SOCIAL take a more proactive approach towards gle vitamin supplement, Mintel reports. @HBWInsight their wellbeing.” The 35-54 age group were the main

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Consumer E-commerce Comfort Helps Amazon Health Product Sales Jump 50% EILEEN FRANCIS [email protected]

mazon.com Inc.’s sales of consumer health products soared A50% or more in 2018 on increasing consumer trust in buying the products online, says e-commerce market research firm Ascential. Nutrition and wellness, which includes vitamins, mineral and supplements and vitamins, experienced sales growth of 55% to about $2.5bn, while sales of health products, including OTC drugs, jumped 50% to around $600m in 2018, the Lon- don-based firm said in a Jan. 14 Amazon 2018 review Edge by Aacential report by Chief Marketing Officer Danny Silverman. “Health and wellness is one of the last sectors to move online as the public con- The Edge by Ascentia report on Amazon’s 2018 performance showed promising figures for the tinues to grow more comfortable with e- e-commerce giant’s consumer health sales. commerce, and Amazon, which is largely re- sponsible for that comfort, is well-aware of site’s premium advertising tools and ac- its product description page including the opportunity this poses,” Silverman says. cess, according to a separate Edge by “Grass-Fed,” “Non-GMO” and “gluten-free.” Sales of OTC pain relief and allergy- and Ascential report, “11 Edge Predictions for Amazon recently reduced fees for third- cold-symptom relievers on Amazon near- Amazon in 2019,” published Jan. 9. party sellers and provided them access to ly doubled in 2018, though Ascential did Among VMS brands offered by first-par- some features previously only for first-party not provide a figure. ty sellers on Amazon, Garden of Life LLC’s vendors. Still, Ascential predicts third-party Mineral supplements are the primary Garden of Life and NOW Foods Com- brands will grow to account for 70% of driver of growth among all nutrition, well- pany’s NOW supplements are the largest sales on Amazon’s site by the end of 2019. ness and OTC products, nearly doubling sellers but lost 20% market share to third- in sales from 2017 to 2018. The success party brands in 2018, Ascential reports. IS COMPETITORS’ PUSH BACK of mineral supplements is likely related Third-party brands are benefiting from ENOUGH? to the growing awareness of the benefits being able to respond quicker than Ama- Ascential said in its report on Amazon’s of “naturopathic remedies,” backed by ce- zon first-party brands to evolving con- third quarter that major conventional re- lebrity claims, the “convenience of buying sumer tastes and offering products that tail chains such as Walmart, CVS and Wal- online, satisfaction guarantee backed by track with those trends, according to a greens are “successfully pushing back” by refunds on online sales and increased ac- November Edge by Ascential report on prioritizing e-commerce and improving ceptance by growing millennial and aging Amazon’s 2018 third quarter. operating efficiencies. populations,” Silverman said in an email. One way the brands identify consumer “By integrating their online and physical Among vitamins, minerals and supple- preferences is by tracking words used in presence, these retailers have been able to ments, which grew by 65% last year, Ama- the Amazon search box. “Targeting those offer a flexible omnichannel shopping -ex zon third-party brands now account for key words can have a major impact on traf- perience. This is a competitive advantage more than 50% of the market on the site, fic and sales,” Ascential said in the report. over Amazon, primarily an ecommerce according to Ascential. Third-party seller Sports Research pure-player and has allowed them to re- Third-party retailers sell products di- Corp.’s namesake brand led nutrition and gain some of their market capitalization,” rectly to consumers on Amazon, usually wellness sales in the third quarter. Sales Ascential says. paying a fee for use of the e-commerce of its Collagen Peptides powder were an Still, overall, these retailers trail Ama- giant’s platform. First-party sellers, on estimated $4.5m in the July-September zon when combining overall health and the other hand, provide their inventories period, according to Ascential. beauty segments. While Amazon’s 2018 wholesale to Amazon, which serves as the Silverman said the brand “has demon- health and beauty sales advanced 21%, retailer and sets product prices. strated a key understanding” of consumer Walgreens’ same sales were up 13% and First-party retailers have access to the preferences by including “buzzwords” on CVS 4%, according to Silverman.

While still primarily e-commerce, Ama- products. PillPack delivers medications in zon has made strides recently in conven- pre-sorted dose packaging, coordinates tional retail sales with Amazon Go walk- clients’ refills and renewals and ensures out shopping stores following its $13.7bn shipments are sent on time. purchase of Whole Foods Market Inc. in Ascential estimates Amazon soon will 2017. The acquisition prompted some integrate PillPack pharmacy services onto analysts to predict the firm will launch its main marketplace, providing opportu- lower-priced goods throughout the store nities to upsell other health care items, in- networks, which has traditionally sold cluding its private label OTC medications higher-priced brands. RS109316 as well as supplements and other nutri- Amazon currently operates less than tional products. a dozen Amazon Go stores but plans to Amazon’s OTC drug brands include the open another 3,000 by 2021, according Basic Care line launched in late 2017 and to Ascential. Sports Research Corp.’s namesake brand, the Primary Health OTC and SouthHealth The concept offers a “walk out shopping” including Collagen Peptides, led third-party OTC and dietary supplement ranges, experience: consumers use the Amazon Go Amazon sellers’ health and wellness sales in which debuted throughout 2018. PS- app which tracks them once they enter the the 2018 third quarter. 124334Its supplement offerings include store and as they take products off shelves. the Solimo line, introduced in early 2018. Customers don’t have to wait in line to Amazon’s lines are priced lower than pay cashiers for their products or to use other retailers’ private label or store brand self-serve barcode scanners as the system products, though the company has likely automatically charges their credit cards or expanded the health-related offerings as other linked accounts and send receipts via far as it can. email. Health and wellness items in Ama- “Amazon growing into a major health zon Go stores include major brands as well care destination will seriously disrupt the as Amazon’s own lines made for it by Per- Garden of Life LLC’s line is among the the top drug store sector, with potential to shift rigo Co. PLC and other manufacturers. first-party sellers of VMS products on Amazon. even more share from brick and mortar to online,” the market researcher said. AMAZON GO PROVIDES RETAIL Jefferies Americas market analyst Brian Tanquilut, on the other hand, doubts FOOTHOLD, MORE CONSUMER Tanquilut expects Amazon Go and Whole Amazon would launch OTC drugs or INSIGHT Foods to become big threats to conven- supplements on the PillPack platform, Amazon Go stores generate 50% more tional retailers in the health and wellness saying the firm would not be wise to use revenue than average similar-size conve- space. “The market share gains from Ama- limited capacity at PillPack to launch OTC nience stores, according to the Edge by zon [health products] hasn’t been that drugs and it would not make sense to use Ascential predictions report. big yet. But if you look at the pure perfor- “scarce” resources for OTC drugs rather Amazon Go tracking technology also mance coming out of competitor retail than pharmaceuticals. could give Amazon further insight into pharmacy, the front end of the retail side Walgreens Boots Alliance CEO Stefano consumer habits. “The data generated by of the business where OTC is old, it has Pessina stated during a briefing with ana- Amazon Go stores could revolutionize in- been under pressure for two years,” Tan- lysts in 2018 that he is “not particularly store marketing, uncovering new insights quilut said in an interview. worried” by Amazon’s growing interest in about how and why shoppers notice (and He doesn’t agree with Ascential on the pharmacy market and addressing Pill- purchase) the items they do – and forever whether Amazon’s mid-2018 acquisition Pack specifically, said it is a “small company” changing the way brands market their of online full-service pharmacy PillPack which had been up for sale “for a while.” products,” Ascential says. LLC will eventually sell OTC private label Published online 21 January 2019

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hbw.pharmaintelligence.informa.com 28 January 2019 | HBW Insight | 17 WELLNESS (DIETARY SUPPLEMENTS)

OptiBiotix Health Strikes Deal To Take CholBiome Probiotic Into Russia And Kazakhstan DAVID RIDLEY [email protected]

K-based probiotic manufacturer no known side effects,” the firm contin- OptiBiotix Health PLC has signed ued. All of the products in the CholBiome Ua three-year distribution agree- range had “one theme in common” ex- ment with Latvian firm SilvExpo to roll plained Steven Riley, OptiBiotix’s head of out its CholBiome range of supplements online sales marketing, and that was that into Russia and Kazakhstan. they leveraged the “incredible power of According to OptiBiotix, the deal grant- the human microbiome” in order to “have ed SilvExpo “non-exclusive distribution a positive impact” on a consumer’s health. rights” for CholBiome – which contains “Each of us has a unique microbiome the firm’s patented cholesterol and blood that has the power to impact almost all pressure reducing LPLDL probiotic strain – the body’s functions including mood, di- extending the brand into what it claimed gestion, ageing, cognitive function and were the “largest Eastern European mar- heart health,” he said. kets for probiotics.” OptiBiotix Health’s CholBiome range of OptiBiotix’s CholBiome products had Based on SilvExpo’s experience of op- probiotic supplements. been “specifically developed” to support erating in Russia and Kazakhstan, OptiBi- cholesterol reduction, he added, “help- otix revealed that the CholBiomeX3 ‘daily tion products since its inception.” ing consumers to pro-actively manage maintenance’ product – which combines “Set up following ten years of scientific their health.” LPLDL with vitamin B3 and red yeast rice work,” SilvExpo focused on the export of – would be the first product to be intro- “high quality next generation food sup- US NEXT FOR LPLDL duced into pharmacies in both countries plements,” OptiBiotix noted, to partners in PROBIOTIC? as part of the deal. a wide range of countries including Singa- Speaking in October, OptiBiotix revealed Commenting on the deal, OptiBiotix’s pore, Armenia, Vietnam, Korea, Malaysia, that it had successfully established 15 commercial director, Per Rehné, said his Bulgaria, France, Russia and Kazakhstan. commercial agreements for its LPLDL firm was pleased to announce the agree- probiotic up to that point, including a ment, which he insisted provided a “stra- AGREEMENT FOLLOWS UK “significant deal” with an US-based phar- tegic step to build the distribution sales LAUNCH maceutical company that would see the channel for CholBiome products in East- CholBiomeX3 was first launched in the strain developed into a “biotherapeutic ern Europe.” UK, where it has been available from Op- pharmaceutical product for the first time.” Explaining why the firm had decided tiBiotix’s online store – optibiotix.online – Representing a “significant move” for to partner with SilvExpo, Rehné said that since October. OptiBiotix, the firm explained that the the latter was chosen for its “knowledge Speaking at the time of launch, OptiBi- seven-figure deal – which granted the and speed to market” and “ability to grow otix explained that the patented LPLDL unnamed US partner “exclusivity to the product sales in challenging markets.” probiotic had been found “not only to re- pharmaceutical market in the US with the SilvExpo was an “emerging company duce ‘bad’ low-density lipoprotein choles- option of expanding this worldwide in the in the pharmaceutical and nutraceuti- terol but also to boost ‘good’ high-density future” – signaled the first licensing part- cal industry,” OptiBiotix explained, which lipoprotein cholesterol.” nership for LPLDL outside the food and had been “working on transforming fresh “Unlike statins, which are often used food supplements markets. ideas and technologies into next genera- to treat high cholesterol, LPLDL results in Published online 18 January 2019 L’Occitane Acquires No. 1 In British Luxury Skin Care RYAN NELSON [email protected]

uxembourg-basedL’Occitane International SA will pay on the Hong Kong Stock Exchange in 2010. $900m for Elemis, the leading name in British luxury skin “Elemis presents a truly unique opportunity that fits us perfectly Lcare, with plans to leverage the brand’s cross-generational in terms of brand ethos, product quality, management capability, fan base and omnichannel distribution capabilities while growing as well as growth and profitability trajectory,” says L’Occitane CEO its global footprint. It’s the firm’s largest acquisition since it listed Reinold Geiger in the Jan. 13 announcement.

He adds, “Elemis is well positioned for continued global growth due to the Elemis Pro-Collagen skin care brand’s broad appeal, award-winning product portfolio, robust new product development pipeline and effective consumer-focused digital and brick-and-mortar distribution strategy.” Asia Pacific is a particularly compelling expansion opportunity for Elemis, according to Geiger. The cash deal is between L’Occitane and Steiner Leisure Limited, a spa services provider and manufacturer of premium skin- and hair-care brands including El- emis and Bliss. Steiner has been a portfolio company of consumer-focused private equity firm L Catterton since late 2015. The parties expect to wrap the transac- tion in the 2019 first quarter, whereupon mitment to natural and organic ingredi- “Encompassing the most powerful Elemis will become a wholly owned sub- ents, utilized via “innovative extraction biological actives available from both sidiary of L’Occitane, led by co-founder processes and traditional know-how” for ‘above and below’ the earth’s surface and CEO Sean Harrington, co-founder and optimal benefits. … every groundbreaking formula is an President Noella Gabriel and co-founder The latter’s namesake, L’Occitane en innovative blend of science with the and Chief Marketing Officer Oriele Frank. Provence, features botanicals sourced chemistry of nature, carefully crafted by L’Occitane – which has more than 3,000 from the south of France and Mediterra- a dedicated team of explorers, scientists retail outlets, including 1,500+ owned nean. Its portfolio also includes L’Occitane and skincare experts,” according to the stores, across 90 countries – highlights au Bresil, described as chock-full of lo- company’s website. Elemis’ omnichannel distribution, span- cal ingredients, Melvita French Organic CEO Harrington is optimistic that the ning digital, retail, QVC, professional spa Beauty Care, and herb-rich Erborian Ko- acquisition will propel Elemis to be- and maritime, as well as its success in at- rean Skin Therapy. come one of the world’s leading skin- tracting Millennials while maintaining its Elemis lists its Pro-Collagen Marine care brands. Gen X and Baby Boomer following. It also Cream ($225), Pro-Collagen Overnight L’Occitane booked net sales of roughly notes the company’s strong profitable Matrix ($230) and Pro-Collagen Rose €1.32bn ($1.5bn) in fiscal 2018, up 4.6% in growth in the US. Cleansing Balm ($64) among bestselling constant currency terms, as reported last Elemis’ focus on coupling efficacious offerings, along with Superfood Facial Oil June. China, Brazil, the US and Hong Kong natural ingredients with cutting-edge sci- ($55), Dynamic Resurfacing Facial Wash were its fastest-growing markets. ence aligns neatly with L’Occitane’s com- ($49) and Absolute Eye Serum ($50). Published online 16 January 2019

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