Mylan Goes Hostile As It Attempts to Snare Perrigo

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1May 2015

COMPANY NEWS 3 Mylan goes hostile as it Diapharmgetsapartner 3 to bringTCMstoEurope Moberggrabs Balmex in US 3 J&J’s US OTCunitseeing 4 attempts to snarePerrigo strong demand NovartisrevealsOTC plant woes 5 ylan is set to takeits bid forPerrigo is reflected in the company’sthree-yearorganic Mdirectly to the store-brand specialist’s net sales compound annual growth rate (CAGR) Alibaba boosts onlinepharmacy 6 in China shareholders, just days after Perrigo’sboard goal for calendar 2014 to 2017 of 5%-10%”. rejected anon-bindingUS$205 (C189) per Furthermore, Perrigo argued, the offer did Boehringerconsiderssale 7 of OTCunit shareoffer.Mylan is currently the subject of not reflect the “additional value to be derived Core OTCbrands bolster 8 aUS$40.2 billion takeoverbid from Teva. from synergies and increased global presence” salesatOmegaPharma Under the terms of the offer,Perrigo share- obtained from having acquired European OTC US deliveriesboost 9 holders would receive US$60 in cash and 2.2 specialist Omega Pharma on 30 March this Probi’s OTCturnover Mylan ordinary shares for each Perrigo share. year (OTC bulletin,17April 2015, page 3). If theyaccept, Perrigo shareholders would own Revealing its offer in aletter to Perrigo’s GENERAL NEWS 10 around 38.2% of the combined business. president, chairman and chief executive officer Mylan pointed out that the legally-binding Joseph Papa, on 6April, Mylan’sexecutive MESMIwelcomes 10 offer was“fully financed, cash-confirmed and chairman, Robert Coury,pointed out that the OTCadverts in Egypt not conditional on due diligence”. proposal wasthe “culmination of anumber of Brazilwantsmoredrugs 11 Mylan –which is promising “at least prior discussions between Mylan and Perrigo to be made availableOTC US$800 million of annual pre-tax operational about the compelling strategic and financial Industr ybacks homoeopathics 11 synergies” within four years of closing –has logic of this combination” (OTC bulletin, 17 Hungarianagencycalls for 12 alsomade a“hell or high water” commitment April 2015, page 1). bettersupplement controls to obtaining US antitrust clearance. Combining the twofirms, he said, would Courtdemands kava-kavaback 12 However, Perrigo said the latest offer rep- “produce acompanywith critical mass in spe- German industr yrevels in 13 resented an even lower price than the original ciality brands, generics, OTCand nutritional record cold and fluwave offer,claiming that based on Mylan’sshare price products; apowerful commercial platform with ASMI pushes for betterregulation 13 of US$55.31 before speculation that Teva plann- reach across all customer channels; an excep- ed to makeanoffer for the firm, the value of the tional, high-qualityoperating platform;and MARKETING NEWS 14 unsolicitedbid wasonly US$181.67 per share. opportunitiestogenerate enhanced growth”. MitsubishiTanabe rolls out 14 Perrigo claimed that atakeoverbyMylan Coury argued that “in an environment where topicalsteroidsfor children would denyits shareholders the full benefits scale and reach are becoming increasingly im- 23andMeworks on return to US 14 of its “compelling” growth strategy,“which ■ Continued on page 8 LloydsPharmacycampaign 15 drives healthcare message HRAchooses digitaltools 16 to educatewomen in UK Mylan hits out at Teva takeoveroffer FirmschallengeClaritin ruling 16 ylan has rejectedforcefullyanunsolicit- Coury said the company’sboard had asked Meda’s global CB12push 17 promisesfirst-classbreath Med US$40.2 billion (C36.9 billion) take- him to lay out the keycriteria that would have overoffer from rivalgenerics giant Teva. to be fulfilled before the board would consider Stadavitaoffers“immune power” 17 In astrongly-worded letter,Mylan’sexec- anytakeoverapproach. These were: valuation; FEATURES 20 utive chairman, Robert Coury,maintained that currencyofacquisition consideration; indus- Teva was“dysfunctional and poorly run” and trial logic and cultural fit; regulatory risk; and Walgreens Boots Alliance tackles 20 that the Israeli group had “consistently flip- other stakeholders. the new retailing landscape flopped on strategy”. Accusing Teva of “a lack of real commit- “Teva’s expression of interest is not even ment” to adeal, Coury said astarting-point REGULARS close to qualifying as aproposal worth pursu- for discussions would have to be “signifi- Events – Our regularlisting 19 ing,”Coury told the Israeligroup’schief exec- cantly in excess of US$100 per share”. People – Mannelly to step down 23 utive officer,Erez Vigodman. “Wedonot wish Teva’s shares were, Coury contended, “low- as Prestige Brands’CEO to makeTeva’s problems Mylan’sproblems.” quality and high-risk”,while adeal lacked in- Stressing that Mylan was“not for sale”, dustrial logic for anumber of reasons. LI FE VER SA SA VER ME TI

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COMPANY NEWS OTC

Mergers&Acquisitions BusinessStrategy Moberggrabs Diapharmgets apartner BalmexinUS to bringTCMs to Europe obergPharma has strengthenedits US MOTCportfolio by acquiring the Balmex ccelerating the introduction of “high qual- its extensive network of partners,Sibbing said, dermatology range from Sanofifor US$3.9 mil- Aity” traditional Chinese medicines (TCMs) would help the partnershipto“establish mar- lion (C3.6 million). into the European market is the objective of keting and sales” of TCMs across Europe. Under the terms of the agreement, the Swed- anew agreement between Diapharm and SU With an office in Shanghai, Diapharm already ish companyhas gained three products to treat BioMedicine, according to the German con- had apresence on the ground in China, he added. nappyrash in babies: BalmexDiaper Rash sultancyfirm. Jan vander Greef, SU BioMedicine’schief Cream Stick, BalmexDiaper Rash Cream with The agreement would bring together Dia- executive officer,insisted that the partnership ActivGuard and BalmexMulti-PurposeHeal- pharm’sexpertise in herbal medicines regis- would build on the “extensive research” into ing Ointment. tration with SU BioMedicine’sscientific under- TCMs that the firm had already undertaken in The deal also givesMoberganadult line standing of TCMs, Diapharm explained, to cre- collaboration with Chinese companyChengdu –BalmexAdult Care –totreat irritation and ate apartnership that would work to “register Di’ao Pharmaceutical Group. rash caused by bladder leakage. and market high quality TCMs in Europe”. SU BioMedicine’s“unique knowledge” in Noting that the full range generated annual Noting that both firms were already experi- systems biology had allowed the firm to ex- sales in excess of US$4 million, Mobergsaid enced in “managing marketing authorisation plore the efficacyand safety of anumber of Balmexwas an “established and trusted brand processes” for TCMs in European countries, TCMs, vander Greef pointed out. among parents”. Diapharm insisted that in partnership theywould Balmexwould be sold to US consumers in become “the leading party for registering and First TCM registration in the EU chain drugstores including CVS, Rite Aid and distributing TCMs” in the region. As aresult of this research, SU BioMed- Walgreens, Mobergnoted, and in mass retail- icine had in 2012 become the first companyto ers such as Walmart. Offer new choices register aTCM manufactured in China in the Commenting on the deal, Peter Wolpert, Commenting on the agreement,Ralf Sib- European Union (EU) under the European Dir- Moberg’schief executive officer,said Balmex bing, general manager of Diapharm, said it ective on Traditional Herbal Medicinal Prod- wasa“great fit” with the company’sexisting would offer “newchoices for prevention and ucts (THMPs), vandeer Greef explained. portfolio and its “core focus” on dermatology. personalisedmedicine to patients in Europe”. The Netherlands’ Medicines Evaluation JeffVernimb, general manager of Moberg “Atthe same time, the partnership adds fur- Board (MEB) granted SU BioMedicine aTHMP Pharma North America, revealed that the firm ther value to our long-term expertise in herbal registration for Diao Xin Xue Kang capsules planned to “further strengthen” the Balmex medicine registration,”Sibbing added. based on traditional use for treating headaches brand by investing in product innovation. Diapharm’sexpertise and “strong reputation” and muscular pains. OTC in registering herbal medicines, together with OTC

1May 2015 Number 442 Individual subscriptions Te rms &Conditions: An annual subscription comprises: These can be viewedinfull at Editor: Matt Stewart ■ 20 OTC bulletin newsletters; www.OTC-bulletin.com/subscribe. Editor-in-Chief: Aidan Fry ■ AND at least 45 weekly news@OTCbulletin No partofthis publication maybe copied, reproduced, Production Editor: Jenna Meredith stored in aretrieval system, distributed or transmitted by electronic newsflashes containing the week’s Assistant Editors: To mGallen, Marie McEvoy anymeans, including electronic,mechanical, photocopying top news stories (currentlydelivered by email). or recording, without the prior written permission of Contributing Editor: David Wallace the publisher,orunder the terms and conditions of Choice of formats Advertising Controller: Debi Minal aGlobal Site Licence or of alicence issued by the The 20 OTC bulletin newsletters are available: Director of Subscriptions:ValDavis Copyright Licensing Agency (CLA) in London, UK, or ■ EITHER as the digital OTC bulletin-i for rights bodies in other countries that have reciprocal Awards Manager: Natalie Cornwell online access by desktop,and tablet and agreements with the CLA. Managing Director: Mike Rice smartphone.Mobile devices can have Apple or Neither maythis publication be exported, distributed Editorial enquiries: OTC bulletin, Android operating systems. or circulated by anymeans without the prior written 4Poplar Road, Dorridge,Solihull, ■ OR in traditional hard-copyprint format, permission of the publisher. West Midlands B93 8DB, UK. delivered by airmail. While due care has been taken to ensure the accuracy Website: www.OTC-bulletin.com of information contained in this publication, the Corporate and multiple subscriptions publisher makes no claim that it is free of errorand Te l: +44 (0)1564 777550 Global Site Licences are available to companies. disclaims anyliability whatsoeverfor anydecisions or Fax: +44 (0)1564 777524 These provide in-house electronic access for actions taken as aresult of its contents. Email: [email protected] staff to OTC bulletin and news@OTCbulletin. ©OTC Publications Ltd. All rights reserved. ® Please ask foraquotation. OTC bulletin is registered as atrademark in Advertising enquiries: the European Community. Discounted multiple subscriptions are available to As above,[email protected] ISSN 1742-0784. OTC bulletin-i at the same location. SUBSCRIPTIONS Companyregistered in England No 2765878. Subscription rates are published at Subscription enquiries: Printed by Warwick Printing CompanyLimited, www.OTC-bulletin.com/subscribe. Contact [email protected] Leamington Spa CV31 1QD,UK.

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OTC COMPANY NEWS

First-QuarterResults J&J’s US OTC unit seeing strongdemand

ohnson &Johnson is experiencing strong de- Johnson had made, Caruso insisted, in tackling son &Johnson’sOTC portfolio. Jmand for its OTCproducts in the US, as the the changes at its OTCbusiness required by a Commenting on the manufacturing restric- companycontinues to makestrides towards re- consent decree filed by the Department of Jus- tions, Caruso said the firm had completed all the turning its full range to the market, according tice (DoJ) and the Food and Drug Adminis- steps of the consent decree and it wasnow to chief financial officer Dominic Caruso. tration (FDA) in 2011 (OTC bulletin,17March waiting for final FDAcertification. Announcing the US pharmaceutical giant’s 2011, page 1). He pointed out that even after Johnson & first-quarter results, Caruso said that US con- Johnson &Johnson wasissued with the Johnson receivedFDA certification, the com- sumers were quickly snapping up Johnson & consent decree for failing to comply with good panywould continue to operate under the con- Johnson’sOTC products nowthe firm had be- manufacturing practice (GMP) requirements sent decree for afive-year period. gun to return asteady supply to retailers. at its Fort Washington plant in the US and its During that five-year period, Johnson& “We’re happytosee that once those products Las Piedras facility in Puerto Rico. Johnson would “continue to makeimprove- hit the shelves, theygoquickly,” Caruso ex- Astring of product recalls by Johnson & ments” to its US OTCbusiness, Caruso noted, plained. “We’re also happytosee that we’re Johnson’sOTC business during 2010 and 2011 adding that the companyexpected overall mar- able to replenish the shelves on amore consis- prompted agovernment investigation and the gins“to steadily improve overtime”. tent basis,”headded. closure of the company’sFort Washington facil- Johnson &Johnson’sOTC brands returning Returning its OTCproducts to the US mar- ity.Manufacturing problems at Fort Washing- to US retailers’ shelves in the first three months ketreflected the “great progress” Johnson & ton led to the withdrawalofthe bulk of John- of 2015 helped to lift its US OTCsales by 10.7% to US$405 million (C379 million). Business First-quarter sales Change Operational Currency Growth had been recorded by the firm’sUS (US$ millions) (%) change (%) effect (%) analgesics brands, Caruso noted, singling out the “positive contributions” of Motrin and Tylenol. Pharmaceutical 7,726 +3.0 +10.2 -7.2 Johnson &Johnson’sshare of the US adult Medical Devices 6,258 -11.4 -4.6 -6.8 analgesics market in the quarter had reached Consumer 3,390 -4.7 +3.4 -8.1 12%, Caruso pointed out, up from 11% in the Total Johnson &Johnson 17,374 -4.1 +3.1 -7.2 prior-year period. In addition,henoted, the firm had taken a Figure1:Johnson &Johnson’s sales in the first quarter of 2015 (Source –Johnson &Johnson) 43%share of the paediatric analgesicsmarket,

Business First-quarter sales Change Operational Currency (US$ millions) 2014/2015 (%) change (%) effect (%) OTC–US405 +10.7 +10.7 – OTC–International 588 -8.8 +9.1 -17.9 Total OTC993 -1.8 +9.6 -11.4 Skin Care–US492 +7.7 +7.7 – Skin Care–International 411 -10.1 +1.5 -11.6 Total Skin Care 903 -1.2 +4.6 -5.8 Baby Care–US111 +8.8 +8.8 – Baby Care–International 400 -9.7 -0.9 -8.8 Total Baby Care 511 -6.2 +1.0 -7.2 Oral Care–US158 -1.3 -1.3 – Oral Care–International 245 -2.4 +8.8 -11.2 Total Oral Care 403 -1.9 +5.0 -6.9 Wound Care/Other –US187 -6.5 -6.5 – Wound Care/Other –International 106 -28.9 -19.7 -9.2 Total Wound Care/Other* 293 -16.0 -12.1 -3.9 Women’sHealth –US6-75.0 -75.0 – Women’sHealth –International 281 -7.3 +5.5 -12.8 Total Women’sHealth 287 -12.2 -0.4 -11.8 Total Consumer 3,390 -4.7 +3.4 -8.1 Consumer –US1,359 +3.8 +3.8 – Consumer –International 2,031 -9.7 +3.1 -12.8 *Now includes Nutritionals, which waspreviously grouped with OTC

Figure2:Breakdown of sales by Johnson &Johnson’s Consumer division in the first quarter of 2015 (Source –Johnson &Johnson)

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COMPANY NEWS OTC

Skin Care posted worldwide turnoverdown Consumer Pharmaceutical First-QuarterResults 20% 44% by 1.2% to US$903 million, as a10.1% fall US$3.39 billion US$7.73 billion in international sales held back a7.7% rise in Novartis reveals the US. The international decline had been entirely due to negative-currencyeffects, the firm pointed out, as operationally,sales had OTC plantwoes actually improvedby1.5%. Johnson &Johnson attributed the increase ovartis has revealed that one of its OTC in US Skin Care turnovertomarket-share gains Nmanufacturing sites in Switzerland recent- for Aveeno and Neutrogena in the country. ly failed aregulatory inspection, just overthree Medical Devices Consumer’sBaby Care business reported a years after the firm suffered production diffi- 36% 6.2% drop in worldwide sales to US$511 mil- culties in the US. US$6.26 billion lion, due to a9.7% fall in international turnover. An inspection of Novartis’ OTCmanufactur- Figure3:Johnson &Johnson’s sales in the first On amore positive note, Johnson &John- ing plant in Rotkreuz by the Swiss Health Auth- quarter of 2015 –US$17.4 billion –broken down by son said higher sales of cleansers and lotions ority in January had been deemed “not accept- business segment (Source –Johnson &Johnson) had drivenupUSBaby Care turnoverby8.8% able”, the companyexplained. up from 38% in the prior-year period. to US$111 million. In December 2011, Novartis suspended pro- Outside the US market, international OTC Meanwhile, worldwide Oral Care turnover duction at its manufacturing plant in Lincoln, sales declined by 8.8% to US$588 million. slipped back by 1.9% to US$403 million, as Nebraska due to quality issues. Soon afterwards Operationally,turnoverhad advanced by both international and US sales dropped. it recalled Excedrin and anumber of other 9.1%, the companynoted, thanks to better sales OralCare turnoverfell by 1.3% to US$158 OTCbrands manufactured at the facility (OTC of analgesics and upper-respiratory products. million in the US, while international sales de- bulletin,23January 2012, page 1). However, this growth had been entirely wiped clined by 2.4% to US$245 million. Meanwhile, Novartis has reported its last out by a17.9% negative-currencyeffect. Operationally,international Oral Care sales setofsales figures for its OTCunit as astand- Worldwide OTCsales slipped back by 1.8% had advanced by 8.8%, Johnson &Johnson said, alone business, with the company’sconsumer to US$993 million, as an operational gain of thanks to better sales of the Listerine mouth- healthcare joint venture with GlaxoSmithKline 9.6% washeld back by an 11.4% negative-cur- wash brand following newproduct launches. (GSK) nowinoperation. rencyeffect. Consumer’sWound Care/Otherunit posted The decline at the OTCbusiness contribut- worldwide sales down by 16.0% to US$293 OTC sales of US$456 million ed to an overall slump in sales at Johnson& million, as the divestment of Benecol in Nov- Noting that OTCwas nowlisted under “dis- Johnson’sConsumer division, which reported ember 2014 caused international turnoverto continued operations”,the Swiss firm said the worldwide turnoverdownby4.7% to US$3.39 slump by 28.9%. US sales declined at aslower business had generated sales of US$456 mil- billion (see Figure 1). rate, falling by 6.5% to US$187 million. lion (C421 million) in the period between 1 Arise in US Consumer sales of 3.8% to Turning to Women’sHealth, Johnson & January and 2March 2015, the day the joint US$1.36 billion failed to offset a9.7% drop Johnson reported worldwide sales at the busi- venture began. in international turnovertoUS$2.03 billion. ness down by 12.2% to US$287 million, follow- During its first quarter,Novartis pointed out Operationally,international sales advanced by ing the sale of its North American sanitary-pro- that it had recognised an income gain of US$28 3.1%, butthis waswiped out by a12.8% neg- tection product unit. million from its 36.5% share in the consumer ative currencyeffect (see Figure 2). The sell-offcontributed to a75.0% slump healthcarejoint venture. Excluding divestments, Johnson &Johnson in Women’sHealth turnoverinthe US during The income wasbased on “estimated results said worldwide Consumer sales grewopera- thethree months, while international sales de- for the month of March”, the companyexplain- tionally by 4.7%, with US sales increasing by clined by 7.3% due to negative-currencyeffects. ed, and would be adjusted to reflect“actual 5.1% and international turnoverrising by 4.5%. The Consumer division accounted for 20% results” in the following quarter. Along with the OTCunit, all of Johnson & of Johnson &Johnson’sworldwide sales in the In March, Novartis claimed a“world-lead- Johnson’sother Consumer units reported adrop first quarter (see Figure 3), which fell by 4.1% ing” consumer healthcarebusiness had been in sales in the three months. to US$17.4 billion. created, as the deal with GSK closed.

OTC Under the terms of the agreement, GSK has assumed 63.5% control of the OTCjoint venture (OTC bulletin,6March 2015, page 1). IN BRIEF Noting that GSK’schief executive officer ■ ORIOLA-KD is set to launch an online of C82.6 million. Sweden accounted for 75% AndrewWitty would chair the 11-member board pharmacy in Sweden in the second half of of Oriola’stotal first-quarter sales, which im- of the business, Novartis pointed out that it 2015 as it looks to bolster its retail business provedby3.0% to C411 million. The remain- would hold four seats. in the country.The online pharmacywas agood der wasgenerated by the firm’sFinland and As part of its ongoing efforts to “optimise” fitwith the wholesaler and retailer’sstrategy in Baltics business. Oriola sold its Russian retail its manufacturing footprint, Novartis revealed Sweden, the companynoted, adding that its re- and wholesale operations at the end of last year that it had closed its OTCfacility in Humacao, tail sales in the country had slipped back by to PharmacyChain 36.6 for RUB3.7 billion Puerto Rico during the three months. 0.1% to C186 million in the first quarter of 2015. (C66.4 million) after the wholesaling business Novartis’ total first-quarter turnover–in- Overall sales in Sweden rose by 2.7% to C307 reported aseries of losses (OTC bulletin,12 cluding twomonths of OTCsales –slipped million. This included wholesale sales of C203 December 2014, page 9) . back by 6.5% to US$11.9billion. million, butexcluded intra-companyrevenues OTC OTC

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OTC COMPANY NEWS

Mergers&Acquisitions Alibaba boosts online pharmacyinChina

hina’sAlibaba Group is set to transfer (GMV) of RMB1.01 billion (C153 million) for Cits online pharmacymarketplace from its the year ended 31 March 2015, accounting for Tmall website to its affiliate Alibaba Health, 21% of atotal GMV of RMB4.74 billion. in amove the companyclaims will allow it to Commenting on the deal, Daniel Zhang, Ali- offer the country’s“widest range” of pharma- baba Group’schief operating officer,said by ceuticals –including OTCmedicines –and adding yao.tmall.com to its operations, Alibaba healthcareproducts. Health would be “well positioned to execute a Under the terms of the deal, Alibaba Health focused strategy in the healthcare e-commerce will pay HK$19.5 billion (C2.3 billion) in shares sector and to expand its offering to the health- and bonds to Alibaba Group to acquire the care industry across China”.

yao.tmall.com online pharmacymarketplace. “Weexpect that this integration will enable Alibaba Group’s online pharmacy marketplace Noting that the transaction wasexpected to Alibaba Group to build ahealthcare ecosystem – yao.tmall.com –offers Chinese consumers OTC close in the third quarter of 2015, Alibaba Group that can utilise e-commerce, big data and other medicines, medical devices, contact lenses and saidupon completion, its stakeinAlibaba Health technologies to improve the healthcare supply other general healthcareproducts would increase from 38% to 53%. In addition, chain and ultimately provide users with abetter salers, retailers and medical establishments reg- Alibaba Health would become aconsolidated healthcare experience,”Zhang insisted. ister on the platform to keep records of sales subsidiary of Alibaba Group, the firm explained. “Healthcare is especially important to Chi- of OTCand prescription medicines. The move brings together Alibaba Health’s nese consumers,”heexplained, “and this sector Alibaba Group claims to be the “largest on- pharmaceutical logistics and regulatory services will become astrategically important growth line and mobile commerce companyinthe world with the online pharmacyarchitecture provided area for our companyinthe years to come.” in terms of GMV”. by yao.tmall.com. Alibaba Health currently operates aproduct The company’smajor businesses include Yao.tmall.com currently hosted 186 licensed identification, authentication and tracking sys- online wholesale marketplace 1688.com,travel pharmacies, Alibaba Group pointed out, offer- tem, which it offers to manufacturers, consum- booking website Alitrip, cloud computing ser- ing Chinese consumers OTCmedicines, medi- ers and regulatory agencies. viceprovider Alibaba Cloud Computing and cal devices, contact lenses and “other general Thefirm also manages the China Drug Elec- shopping website Taobao Marketplace. healthcare products”. tronic Regulation Platform for China’sFood Alibaba Group’sinitial public offering in Sales of OTCmedicines through those busi- and Drug Administration (CFDA). The agency September last year raised US$25 billion (C23 nesses generated Gross Merchandise Volume requires that all drug manufacturers, whole- billion), the biggest amount ever recorded. OTC

BusinessStrategy Mergers&Acquisitions Weifa’s shareholders approve spin-off KaroBio completes orway’sWeifaisset to become a“pure ly in favour” of the move,the firm noted, and Tanomed acquisition Nconsumer health player”, after its share- believeditwould secure a“stronger future” holders voted overwhelmingly in favour of the for both businesses. aro Bio –aSwedish development com- company’sproposal to spin-offits business- As apure consumer healthcarebusiness, Kpany–has completed its acquisition of to-business (B2B) manufacturing division into Weifawould “continue to strengthen its cate- drug-research firm Tanomed and its in-devel- asubsidiary. gory-leading position” in Norway’sOTC mar- opment product to tackle the common cold. Noting that ashareholder vote had taken ket, the companyinsisted. Karo said that Tanomed’s“unique product” place at an extraordinary general meeting last would help “relieve and prevent” the progress- month, Weifasaid over90% of the votes cast Leader in pain relief ion of acold by “reinforcing the body’sown de- –representing 41% of Weifa’stotal share capi- Weifa’sstrategy would focus on becoming fences” and help fight common cold viruses. tal –were in favour of the proposed move, a“category leader” for OTCpain relief in Nor- The patented technology used in the prod- whichwas announced in March (OTC bulletin, way, the firm said, and atop-three player in uct wasbased on research conducted with the 3April 2015, page 3). the country’scough and cold market. University of Umeå, Karo pointed out, which Under the plans, Weifa’sB2B unit will be Weifa’sConsumer Health portfolio –which showed that when the enzyme glucose oxidase movedtoanewly-establishedsubsidiary named includes the Dexyl nasal spray,the Ibux an- wasused in combination with glucose, it effec- Vistin Pharma. The separation is scheduled for algesic and the Tussin cough treatment –gen- tively counteracted “rhinovirus infections and June 2015. erated sales of NOK315 million (C36.6 mil- other viral and bacterialpathogens”. Commenting on the move in March, Weifa lion) in 2014. The Swedish firm announced last month said it would allowits Consumer Health busi- Consumer Health accounted for 57% of that it wasset to acquire Tanomed in an all- ness and B2B operation to “pursue their own Weifa’stotal sales in 2014, which advanced share deal following approvalfrom sharehold- strategic agendas”. by 2% to NOK557 million. ers (OTC bulletin,17April 2015, page 7). Weifa’sboard of directors was“unanimous- OTC OTC

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COMPANY NEWS OTC

Annual Results Boehringer considerssale of US OTC unit

oehringer Ingelheim is exploring the “strat- the Zantac heartburn-relief brand. Business Annual sales Change Begic options” for its US OTCoperations, Meanwhile, Hubertus vonBaumbach, mem- (C millions) (%) including the possible sale of the business, ac- ber of the board of directorsresponsible for cording to Andreas Barner,chairman of the finance, said negative-currencyeffects had taken Prescription Medicines 10,101 -7.3 company’sboard of directors. the shine offthe continued “positive develop- Consumer Health Care 1,437 -2.5 Speaking as the privately-held German firm ment” of Boehringer’sConsumer Health Care Animal Health 1,130 +5.6 announced its 2014 results, Barner said are- division in 2014. Biopharmaceuticals 501 +11.5 cent reviewofits Consumer Health Care unit Reporting Consumer Health Care turnover Other 148 -18.6 had revealed that Boehringer waslacking “crit- down by 2.5% to C1.44 billion for the 12 months Boehringer Ingelheim 13,317 -5.3 ical mass” in the US OTCmarket. (see Figure 1), Baumbach said that the unit’s “If you don’thavecritical mass, you have performance had been “satisfactory”. Adjusted Figure1:Breakdown of Boehringer Ingelheim’s sales twooptions,”Barner explained, “and we are ex- for currencyeffects, Consumer Health Care’s in 2014 (Source –Boehringer Ingelheim) amining them carefully.” sales had improvedby2.0%. in the Americas region, had dropped by 7.8%, Selling offthe business wasone option, he Europe remained Consumer Health Care’s the firm said, holdingback growth in the area. noted, while the other wastostrengthen oper- most important region, the companypointed Consumer Health Care’sbest-selling global ations through investment. out, despite sales dropping back by 6.1% to brands –Buscopan anti-spasmodics, Dulcolax Noting that both options were still under con- C563 million (see Figure 2). Adjusted for cur- laxatives, Mucosolvan cough and cold prod- sideration, Barner insisted that the firm had made rencyeffects, turnoverdeclined at aless dram- ucts, and Pharmaton multivitamins –had all no decisions overthe future of the business. atic rate of 4.0%. generatedsales “significantly” over C100 mil- Speaking to OTC bulletin just under ayear A“difficult” 12 months for the Consumer lion, Boehringer pointed out. ago, Joachim Hasenmaier,head of Boehringer’s Health Care division in Eastern Europe was Consumer Health Care unit, insisted that the the main reason for the overall decline in the Buscopan best-selling brand US, along with China and selected emerging region, Boehringer explained. Buscopan remained the firm’sbest-selling markets, remained the company’s“priority mar- Sales in Germany–Boehringer’sbiggest OTCbrand, with turnoverupby16.6% at con- kets” for its OTCproducts (OTC bulletin,30 European market –had also struggled, the com- stant exchange rates –8.3% as reported –to May 2014, page 24). panynoted, slipping back by 3.2%. C222 million (see Figure 3). Boehringer’sConsumer Health Care port- Meanwhile, the division’ssales in the Asia, A“strong performance” had been recorded folio in the US includes Dulcolax laxativesand Australasia, Africa (AAA) region had improved by Dulcolax, with turnoverupby5.9% –4.7% by 3.1% to C439 million, the companysaid, as reported –to C200 million, the firm noted, Region Annual sales Change drivenby“double-digit”growth in Turkey and while Pharmaton had also developed well, with (C millions) (%) South Africa and a“strong” performance in sales growing by 2.2% when adjusted for cur- Europe 563 -6.1 China. At constant currencies, sales in the AAA rencyeffects to C136 million. region advanced by amore substantial 9.7%. Asia, Australasia, Africa 439 +3.1 By contrast, an exceptionally strong per- Turning to the Americas region, Boehringer formance in 2013 for Mucosolvan could not Americas 434 -2.8 reported Consumer Health Care sales down be matched in 2014, Boehringer explained, with Consumer Health Care1,437 -2.5 by 2.8% to C434 million, as currencychanges sales of the brand falling by 7.0% –12.0% as wiped out positive operationalgrowth. Adjusted reported –to C162 million. Figure2:Breakdown of sales by Boehringer Ingelheim’s Consumer Health Carebusiness in 2014 for currencyeffects, turnoverhad risen by 3.0%. The firm’sleading local brand –Bisolvon (Source –Boehringer Ingelheim) Sales in the US, Boehringer’sbiggest market cough medicines –had posted asmall gain, Boehringer added, with sales up by 1.1% at con-

250 222 stant exchange rates to C99 million. (+16.6%) 200 Commenting on the performance of Boxa- (+5.9%) Grippal and Vaprino –both switched from 200 162 prescription to OTCstatus in Germanyin2013 (-7.0%) 136 (OTC bulletin,31May 2013, page 16) –Boeh- 150 (+2.2%) ringer said both brands had gained market share

millions) 99 C in their respective categories. (+1.1%) 100 The BoxaGrippal cold medication had increased its market share by 3.2 percentage-points Net sales ( 50 in the year,the firm noted, while the Vaprino diarrhoea treatment had gained 2.5 points. Consumer Health Care accounted for 11% of 0 Buscopan Dulcolax Mucosolvan Pharmaton Bisolvon Boehringer’stotal sales in 2014, which slipped back by 5.3% to C13.3 billion. Adjusted for cur- Figure3:Net sales achieved by Boehringer Ingelheim’s most important international Consumer Health Care rencyeffects, the drop wasaless severe 3.2%. brands in 2014. Changes in sales arecurrency-adjusted (Source –Boehringer Ingelheim) OTC

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OTC COMPANY NEWS

Mergers&Acquisitions Annual Results Mylan attempts CoreOTC brands bolster to snarePerrigo sales at Omega Pharma ■ Continued from front page -portant, the combination of our firms would mega Pharma reported sales up by 5% to France, improving by 6% to C225 million. result in an unmatched global platform, sub- OC1.28 billion in 2014, thanks to astrong Emerging Markets –Omega’s smallest mar- stantial revenue and operating synergies, and performance from its 20 core OTCbrands. ket–posted sales down by 11% to C160 mil- enhanced long-term growth potential”. Turnoverfrom the Belgian firm’stop-20 lion. The companydid not give areason for the Promising “a very significant cash payment brands –covering the analgesic, cough and decline in turnover. to Perrigo shareholders”, Coury said the com- cold, dermatology,vitamins, minerals and sup- Omega’s operating income in 2014 had in- bined entity would possess a“powerful com- plements (VMS), and weight-losscategories – creased by 44% to C198 million, the firm noted, mercial platform with strong reach across mult- improvedby8%overthe 12 months, and ac- as the improvement in sales and gross margin iple channels”. counted for 53% –oraround C676 million – had offset ahigher marketing spend. This would be “an increasingly important of Omega’s total sales. Omegaisnow operating as part of Perrigo, strategic advantage in light of the evolving dis- Omega pointed out that the OTCbrands it after the US store-brand specialist completed tributor and payor dynamics across geogra- had acquired in 2014 –including the OCE-Bio last month its C3.8 billion acquisition of the phies”, he insisted. and Ymea dietary supplements –had contri- business (OTC bulletin,17April 2015, page 3). Meanwhile, Perrigo reported Consumer buted C12.8 million to group sales. Healthcare turnoverflat at US$537 million in Over the 12 months, Western Europe –ex- Acquired by Perrigo itsthird quarter ended 28 March 2015, as bet- cluding Belgium and France –remained the Speaking as Perrigo closed the acquisition, ter product sales were offset by lower contract firm’sbiggest market, with sales up by 10% to thefirm’schief executive officer,Joseph Papa, manufacturing revenues. C589 million (see Figure 1). saidthe deal had created an “industry-leading Turnoverfrom existing products had in- “Strong performances” in Italy,Portugal, healthcarecompany” with the structure and cash creased by US$28 million, compared with the Spain and the UK had been behind the rise in flowtoaccelerate its international growth. prior-year period, Papa noted, thanks to better the region’sturnover, the companynoted. The combination of Perrigo and Omega sales of analgesics and cough/cold treatments. Belgium held its position as Omega’s second- created a“top-fiveglobal OTCcompany”, Papa In addition,Consumer Healthcarehad gen- largest market, with sales moving forward by pointed out, noting that with Omega on board, erated US$25 million from sales of newprod- 5% to C302 million. Perrigo’stotal annual sales would increase to ucts in the three months, he said. Sales also advanced at asingle-digit rate in around US$5.7 billion (C5.2 billion). However, these gains had been wiped out by anumber of factors, Papa explained, including Annual sales Change Operating profit Change adecline of US$13 million in contract manu- (C millions) 2013/2014 (%) (C millions) 2013/2014 (%) facturing revenues and “unfavourable” foreign- Western Europe* 589 +10 104 +53 currencyeffects. Belgium 302 +5 29.9 -8 Consumer Healthcareaccounted for 51% France 225 +6 48.0 +42 of Perrigo’stotal third-quarter sales, which advanced by 4% to US$1.05 billion. The com- Emerging Markets 160 -11 19.3 -33 pany’sAPI, Nutritionals, Prescription Pharma- Other ––-3.13 – ceuticals and SpecialtySciences divisions ac- Total Omega Pharma 1,276 +5 198 +44 counted for the majority of the remainder. *Excluding Belgium and France Sales at the firm’sNutritionals division – which includes arange of vitamins, minerals Figure1:Omega Pharma’s sales and operating profit in 2014 (Source –Omega Pharma) andsupplements (VMS) as well as infant for- OTC mulae –had dropped back by 6% to US$130 million, Perrigo noted. BusinessStrategy The decline had been due to lower sales of VMS products, the firm pointed out, and the USANA set to enter Indonesian market decision to discontinue anumber of products. Successful product launches bolstered Per- S-based nutritional firm USANAHealth USANAwould enter the market with its rigo’sPrescription Pharmaceuticals division, USciences is set to enter the Indonesian core Essentials range, the firm noted, along with which posted sales up by 13% to US$252 mil- market later in the year as part of its global ex- “several of its keyoptimisers”. lion, while the API business reported turn- pansion strategy. The direct-selling market in Indonesia was overdownby4%toUS$30.7 million. Kevin Guest, USANA’spresident, said that worth overUS$1 billion (C921 million) an- Sales at the Specialty Sciences business Indonesia wasa“promising market” for the nually,USANAexplained, pointing out that jumped by 53% to US$81.9 million, thanks to company’srange of energy,personal-care and thecountry had the world’sfifth-fastest grow- higher royalty revenues. supplement products and that its direct-selling ing economy. OTC model wasagood fitinthe environment. OTC

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COMPANY NEWS OTC

First-QuarterResults US deliveries boost Probi’s OTC turnover

ubstantial”deliveries of probiotics to edt pointed out, in preparation for product letin,20March 2015, page 6). “Sits partners in the US helped to more launches planned for later this year. Probi Digestis had been positioned in Hong than treble Probi’sConsumer Healthcaresales “Substantial deliveries” of Probi Digestis Kong and Macau as atreatment for symptoms in the first quarter of 2014, according to chief had been made to Pharmavite during the three of irritable bowel syndrome (IBS), the com- executive officer Peter Nählstedt. months, he noted. pany explained. DKSH distributed the product Turnoveratthe Swedish firm’sConsumer Pharmavite intended to include Probi Dig- to pharmacies, hospitals and clinics in both Healthcare operation had reached SEK59.0 estis in five newcombination products, which countries, Probi noted. million (C6.30 million) in the three months, would also contain vitamins and minerals,Nähl- Meanwhile, in the same month, Probi struck up from SEK16.6 million in the prior-year stedt explained. adeal with vitamins, minerals and supple- period, Nählstedt reported, thanks to large Pharmavite has distributed the probiotic in ments (VMS) companyJamieson to launch orders of probiotics from natural products re- theUSunder its Nature Made brand since 2012 Probi Digestis in Canada (OTC bulletin,3 tailer NBTY and dietary supplements manu- (OTC bulletin,14September 2011, page 11). April 2015, page 6). facturer Pharmavite. Under the terms of the deal, Jamieson is During the period, NBTY had placed the Twodistribution deals featuring Probi Digestis in its Digestive Care “largest order to date” that Probi had received Meanwhile, away from the US, Nählstedt Daily Relief product, which it launched in the for its probiotics, Nählstedtpointed out (OTC noted that during the quarter Probi had secured Canadian market in March. bulletin,16January 2015, page 5). twodistribution deals for Probi Digestis in new The rise in Consumer Healthcare sales help- Noting that the order had nowbeen deliver- markets to support the company’scontinued ed to lift Probi’stotal group turnovertoSEK68.9 ed, Nählstedt explained that Probi’sprobiotics international expansion. million in the first quarter,upfrom SEK26.4 would be sold to US consumers under NBTY’s In March, Probi Digestis waslaunched in million in the prior-year period. The Functional Nature’sBounty brand. Hong Kong and Macau by DKSH, after Probi Foods division reported a2.0% rise in sales In aseparate order,Probi had also deliver- signed adistribution agreement with the Swiss- to SEK10.0 million. ed “substantial volumes” of bacterial powder based market services provider (OTC bul- OTC to NBTY for use in its Probiotic GX product, Nählstedt said, which is also part of the Nature’s Bounty range. NBTY launched products based on the Swedish company’sProbi Digestis digestive- health brand in the US at the end of last year under its Nature’sBounty and Sundown Nat- urals brand names (OTC bulletin,28Novem- ber 2014, page 8). Consumer Healthcare’ssales had also been boosted by consignments to Pharmavite, Nählst-

IN BRIEF ■ HERBALIFE has hit back at claims by investor William Ackman that its senior management were looking at hiring individual legalrepresentation as the companycame under scrutinyfrom regulators. The US-based direct-selling firm –which Ackman has long ac- cused of operating likeapyramid scheme that makes more moneyfrom recruitment than actually selling products (OTC bulletin,18Jan- uary 2013, page 5) –insisted that there was “simply no truth” to the claims and argued that Ackman’scomments were a“stunt” designed to drive down the firm’sshare price. Herba- life also claimed that Ackman’scampaign against the companywas under investigation by the Federal Bureau of Investigation (FBI) and the Department of Justice. OTC

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OTC GENERAL NEWS

Regulatory Af fairs MESMI welcomes OTC adverts in Egypt

gypt’sOTC industry has the perfect oppor- visual, online and outdoor advertising. National Health Institute –aimed at establishing Etunity to educate consumers about respon- The guidelines coverarange of subjects, in- afully-regulated market for OTCdrugs in Egypt. sible self-medication, nowaban on the adver- cluding the types of information manufacturers Before the programme had begun, “there tising of non-prescription medicines has been are able to include in advertisements for non- wasnoOTC classification” in Egypt, the asso- lifted, according to the Middle East Self-Medi- prescription medicines –such as statementsfrom ciation pointed out, “so all medicinal products cation Industry (MESMI). aproduct’s“approvedinsert leaflet”–and ex- were classified as prescription products”. Speaking to OTC bulletin following the amples of howtherapeutic claims may be used. “The programme started by establishing the Egyptian government’spublication of guide- On howclaims should be framed, the guide- concept of OTCclassification and defining pre- lines regulating for the first time the advertis- lines state that “non-therapeutic and/or cosmetic scription-to-OTC switch criteria,”Sawiris noted. ing of non-prescription medicines,Ramez Saw- claims may be presented, providing these do “After three years of close work with the iris, chairman of MESMI, said the change in notobscure the therapeuticindication or sug- authorities, the first list of medicines approved the lawwould “ensure responsible advertising” gest atherapeutic benefit”. for OTCsale waspublished in July last year,” of non-prescription medicines to the country’s “The emphasis should always be on the he explained. 85 million-strong population. therapeutic effect,”the guidelines note. The list of approvedOTC medicines in- Noting that it had been “completely prohibit- The MoH points out that its role will be to cludes over100 active ingredients, such as fexo- ed to advertise anymedicine in Egypt”, MESMI “monitor” all advertising materials to ensure fenadine, ibuprofen, phenylephrine, simethi- claimed Egypt’sMinistry of Health (MoH) the regulations are adhered to, and to handle cone and sumatriptan. would nowbeable to “better control mislead- anycomplaints. A“complete investigation” of “Wehavecreated asystem [for regulating ing communications” to consumers –such as all complaints will be carried out within 30 OTCmedicines] that wasnot there before,” “unapprovedorunrealistic” claims for OTC days, the agencypromises. Sawiris insisted. products –made by some manufacturers. According to MESMI, the first advertise- Commenting on howthe newOTC classifi- According to the MoH, the “ultimate goal” ments for OTCdrugs are expected to be launch- cation system and advertising regulations would of the advertising regulations is to “allowphar- ed across Egypt “within the next fewmonths”. affect Egypt’snon-prescription market, MESMI maceutical companies to practise fair and trans- MESMI explained that the publication of said it was“sure” the country would become parent drug promotion, and to deliveraccurate the advertising guidelines wasthe result of a “more attractive”tomanyOTC companies. and updated health claims with adequate warn- five-year work programme undertaken by vari- However, the association warned that despite ings to healthcare practitioners”. ous stakeholders –including MESMI, the Cen- the recent changes, some firms could still be The regulations apply to awide range of tral Administration of Pharmaceutical Affairs, put offbyEgypt’s“lengthyregistration process promotional materials for OTCproducts, the the Chamber of Pharmaceutical Industries, the for OTCmedicines”, in addition to “low MoH points out. These include print, audio- Pharmacists and Physicians syndicates, and the prices and small margins” for such products. OTC

Regulatory Af fairs IN BRIEF CMDh endorses codeine-use restrictions ■ RECKITT BENCKISER (RB) has recalled in the US certain lots of its Mucinex cough, ecent recommendations on restricting co- colds in people of anyage who were known to cold and flu liquid medicines due to alabelling Rdeine use in children by Europe’sPhar- convert codeine into morphine at afaster rate error.Asthe drug facts label on the back of macovigilance Risk Assessment Committee than normal, nor by breastfeeding mothers. the products’ packaging might not correspond (PRAC)havebeen endorsed by the Coordina- Furthermore, the PRACrecommended that with the ingredients the liquids contained, RB tion Group for Mutual Recognition and De- children and adolescents aged between 12 and said, consumers could be unaware of the side centralised Procedures –CMDh. 18 years with respiratory problems should not effects and/or risks associated with acetamin- In March, the PRACsaid that medicines use codeine as acough or cold treatment. ophen, dextromethorphan, diphenhydramine, containing codeine should not be used to treat guaifenesin, and/or phenylephrine. Consumers coughs and colds in children under 12 years Measures implemented across EU might also takeaproduct with undeclaredlevels due to an increased risk of side effects (OTC Noting that the CMDh had agreed with the of the ingredients, the firm pointed out. The bulletin,20March 2015, page 11). PRAC’srecommendations on codeine by con- products recalled include: 33 lots of Mucinex Children under 12 years converted codeine sensus, the European Medicines Agency(EMA) Fast-Max Severe Congestion &Cough Liquid; into morphine at afaster rate than adults, the explained that the measures would be directly 28 lots of MucinexFast-Max Cold, Flu &Sore PRACsaid at the time, resulting in high levels of implemented by all European Union (EU) Throat Liquid; 28 lots of MucinexFast-Max morphine in their blood. The “variable and un- member states where codeine-containing medi- Night-Time Cold and Flu Liquid; and 15 lots predictableway” their bodies converted codeine cines were authorised. of MucinexFast-Max Cold &Sinus Liquid. placed them at “special risk” of serious side The PRACreviewwas triggered by are- RB has also recalledatotal of 38 lots of two effects, such as breathing difficulties, it noted. viewin2013 of codeine for pain relief in child- separate MucinexFast-Max Liquid Combina- The committee also recommended that co- ren(OTC bulletin,28June 2013,page 9). tion packs. deine should not be used to treat coughs and OTC OTC

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GENERAL NEWS OTC

Regulatory Af fairs Regulatory Af fairs Industrybacks Brazil wants moredrugs homoeopathics to be made available OTC he US Consumer HealthcareProducts As- Tsociation (CHPA) and the American Asso- razil is set to expand the number of OTC Brazil as aprescription medicine for at least 10 ciation of Homeopathic Pharmacists (AAHP) Bmedicines available to consumers, if apro- years, the proposal stipulates, it must also have have both backed the current regulatory frame- posal to overhaul the country’s prescription-to- agood safety profile and not be addictive. work for homoeopathic medicines in the US. OTCswitch process is giventhe go-ahead. In addition,the product must treat symptoms Speaking at aUSFood and Drug Admin- National medicines regulatory agencyAnvisa that can be easily identified by the consumer and istration (FDA) public meeting to discuss the is proposing that a“rapid mechanism” be in- have ashort duration of use, the agencynotes. framework on 20-21 April, Barbara Kochan- troduced to allowfor the first time companies Anvisa says that under its proposal, medicines owski, the CHPA’svice president of regulatory to switch individual medicines to OTCstatus. available only on the Brazilian market will be andscientific affairs, said that the association Currently,for amedicine to be sold OTC able to be classified as OTCfor the first time. supported the current regulations and the “many in Brazil, its therapeuticcategory or indication Currently,medicines can only be sold OTC controls in place to assure the quality and safe must be listed in the Grupos eIndicações Tera- in Brazil if theyare already available without use” of homoeopathic products. pêuticas Especificadas (GITE),which waslast aprescription in Europe or the US. Noting that homoeopathic products had a updated in 2003. Only 36 therapeutic categories Concerning medicines already marketed “very favourable safety profile”, Kochanowski and indications are listed in the GITE. OTCinBrazil, the proposal notes that Anvisa pointed out that while most consumers were Anvisa admits that by not adding to the will be able to reviewaproduct’sclassification aware of homoeopathic medicines, the major- GITE for over12years, it has prevented pre- if safety concerns arise. The agencycould then ity wanted more information about them. scription medicines suitable for OTCsale from reverse-switch aproduct if it deemed consum- “Wewelcome abalanced conversation with being switched. As aresult, the agencyexplains, ers were at risk, the proposal points out. the FDAabout the current regulatory frame- Brazilianconsumers’ access to medicines for Anvisa is inviting comments on its proposal work for homoeopathic products,” Kochan- treating minor ailments has been restricted. from industry,consumers and other interested owski added, “and look to continue our con- Under its proposal, Anvisa says that manu- parties until 15 June 2015. sumer education on the safe use of all OTC facturers will be able to apply to switch individ- Following the close of the consultation, An- healthcareproducts.” ual products that meet certain requirements. visa says it will analyse the comments it has Mark Land, president of the AAHP,told the The product must have been marketed in receivedand consider its next steps. meeting that his association was“confident that OTC the majority of homoeopathic drug products in the market” were manufactured and labelled in Regulatory Af fairs “substantial compliance”with the regulations. Echoing the CHPA’ssupport for the current Barry Callebaut grantedclaim exclusivity regulations, Land said that the framework had a“25-year record of successfully providing the arry Callebaut Belgium has been granted relationship had not been established between FDAwith broad enforcement authority”. Bfive years’ exclusive use of the health claim carbohydrate solutions to be consumed with “These discussions,”headded, “will con- that “cocoa flavanols help maintain the elastic- water–including sports gels –and maintenance tribute to the FDA’sand the industry’spublic- ity of blood vessels, which contributes to nor- of physical performance during endurance exer- health mission and recognise consumers’ desire mal blood flow”, after the firm’sapplication cise in comparison with water/electrolyte place- for more natural healthcare options.” wasapprovedbythe European Commission. bos (OTC bulletin,24October 2014, page 16). Calling the meeting earlier this year,the The Commission authorised the claim –and The scientific comments receivedfrom the agencysaid that it wanted to gather information theexclusivity period –inthe Official Journal of British Specialist Nutrition Association had not from stakeholders on the “current use of human the European Union (EU) in April, following a been enough to require anychange to the NDA drugs and biological products labelled as homo- positive opinion in May last year from the Euro- panel’sprevious conclusions, EFSA said. eopathic, as well as the agency’sframework pean Food Safety Authority’s(EFSA’s)panel Similarly,scientific comments submitted by for such products” (OTC bulletin,3April on Dietetic Products, Nutrition and Allergies Estonia’sE-Piim Production had failed to alter 2015, page 10). (NDA) (OTC bulletin,30May 2014, page 14). theNDA’s earlier negative opinion, EFSA noted, “These products include prescription drugs Exclusivity wasgranted thanks to Barry on the health claim related to the consumption and biological products labelled as homoeo- Callebaut’s proprietary data, which the NDA of the lactobacillus plantarum strain Tensia pathic, and OTCdrugs labelled as homoeo- found had provenacause-and-effect relation- in the semi-hard “Edam-type” ‘Harmony’ heart pathic,”the agencypointed out. shipbetween the consumption of cocoa flava- cheese and the maintenance of blood pressure. Under the Federal Food, Drug, and Cos- nols –inhigh-flavanol (HF) extract in capsules An appeal against the panel’soriginal nega- metic Act, homoeopathic products in the US and tablets –and the claimedeffect. tive opinion for Finnish food firm Karl Fazer’s are judged against the standards for “strength, To obtain the claimed health benefit, 200mg application relating to high-fibre sourdough rye quality and purity” set by the Homeopathic of cocoa flavanols should be consumed daily. bread and areduction in post-prandial glycaem- Pharmacopeia of the US and its supplements. Meanwhile, EFSA has backed the NDA’s ic responses wasalso dismissed. OTC earlier negative opinion that acause-and-effect OTC

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OTC GENERAL NEWS

Herbal Medicines Regulatory Af fairs Courtdemands Hungarian agency calls for kava-kavaback better supplementcontrols German regional court has ordered the Acountry’sfederal institute for drugs and tricter regulation of dietary supplements is anew product waslaunched onto the market. medical devices, BfArM, to restore marketing Sneeded in Hungary to protect consumers OGYEI wanted to introduce alicensing pro- authorisations for kava-kava that the agency fromadulteratedproducts, according to Csilla cedure for all dietary supplements, Pozsgay had revokedonsafety grounds. Pozsgay,director general of the country’sNation- said, to ensure that only “quality products from In May 2005, BfArM said it would revoke al Institute of Pharmacyand Nutrition, OGYEI. trusted sources” would be available to Hungar- licences for anxiety medicines containing kava- Speaking to Hungarian healthcare magazine ian consumers. kava,citing the risk of liverdamage. Adead- weborvos.hu,Pozsgay said researchcarried out Stronger market surveillance wasalso re- line for revocation waslater extended until by OGYEI indicated that there had been a“sharp quired, Pozsgay insisted,noting that the agency December 2007. increase” in the number of dietary supplements wanted to launch wider inspections and take But the upper administrative court for the found to contain undeclared active pharmaceuti- “forceful action” against manufacturers of ad- region of North Rhine-Westphalia found that calingredients. These products posed a“clear ulterated products. such concerns did not justify withdrawing mar- health risk” to consumers, she insisted. OGYEI wasestablished on 1March 2015 keting authorisations, givenkava-kava medi- The objective of the recently-established when Hungary’sNational Institute of Pharmacy cines’ provenefficacy. OGYEI wastoclear the market of potentially wasmerged with the National Institute for Food Rather,the court said, licences should be dangerous supplements, Pozsgay explained, by and Nutrition. The agencyistasked with the adjusted to minimise risks. These included implementing strict controls on the manufacture regulation of medicinal productsand pharmacy giving kava-kava medicines prescription-only and sale of such products. in the country. status and limiting maximum daily doses. Under Hungary’sexisting dietary supple- It has also taken oversome of the responsi- Furthermore, the court added, the cause-and- ment regulations, manufacturers did not need to bilities of the National Institute for Quality and effect relationship between the herbal remedies submit their products to OGYEI for anykind of Organisational Development in Healthcare and and liverdamage was“questionable”. testing, Pozsgay pointed out. The only require- Medicines, GYEMSZI. OTC ment, she noted, wastoinform the agencywhen OTC

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GENERAL NEWS OTC

Regulatory Af fairs Market Research ASMI pushes for German industryrevels in better regulation recordcold and flu wave ustralia needs “better rather than less” Aregulation of complementary medicines, wave of colds and flu that beganinSouth- nearly two-thirds to around C104 million. according to the country’sself-medication in- AernGermanyatthe start of this year and As the wave of coughs, cold and flu spread dustry association, the ASMI. spread throughout the country,persisting until at nationally in February,the category’sturnover In its submission to the Australian govern- least March, provedaboon to local OTCfirms. rose by more than 60%, IMS Health observed. ment’sreviewofmedicines and medical devices On the back of the strongest cold and flu This wasreflected in total non-prescription regulation –announced last October (OTC bul- wave this decade, sales of non-prescription medicine sales growing by 17% to C417 million letin,7November 2014, page 17) –the ASMI cough, cold and flu remedies through German at ex-factory prices in February,onthe back insists that the regulatory framework for com- community and mail-order pharmacies were of a22% volume gain to 82 million packs. plementarymedicines needs to be “fine tuned”. 40% higher in the first quarter of 2015 than in In the first quarter,cough, cold and flu rem- Noting that it is broadly supportive of the the first three months of last year. edy sales through mail-order pharmacies ad- current Australian regulatory system for com- An analysis conducted by market researcher vanced by athird to C52.4 million, with growth plementary medicines, the association insists: IMS Health shows pharmacysales of cough, rates in excess of 40% for expectorants,other “The current system does not need dismant- cold and flu products totalling C645 million cough remedies and flu products, as well as for ling, butshould be improvedtostreamline at retail prices in the first quarter of this year immunostimulants and salves and ointments. processes, increase transparencyand ensure (see Figure 1). This followed a12.1% value increase for that regulatory requirements are commensu- cough, cold and flu remedies through mail- rate with risk.” Expectorants sales order retailers in the fourth quarter of 2014. On the subject of newproduct approvals, the Germans, it appears, were particularly af- The strong start to 2015 had, IMS Health association says the regulatory process should flicted by chesty coughs,assales of expector- noted, built on fourth-quarter 2014 cough, cold be reformed to makeit“more transparent, pre- ants climbed by 52.0% to C124 million. Turn- and flu sales that increased by 11% in value dictable, certain and capable of review”. overfrom cold and flu remedies shot up by terms and by 7% measured by volume. “In cases where anew ingredient has been assessed by acomparable overseas evaluator, Business First-quarter sales Change Proportion (C millions) (%) of total (%) the Therapeutic Goods Administration (TGA) should recognise the outcome of the overseas Expectorants 124.4 +52.0 19 assessment and not duplicate regulatory pro- Cold and flu remedies 103.6 +64.7 16 cesses by re-evaluating the ingredient,”the Other respiratory remedies 101.4 +35.2 16 ASMI argues. Sore-throat products 95.3 +32.3 15 Furthermore, the industry body calls for Decongestants 94.7 +20.5 15 “substantial reforms” to the advertising of com- Cough remedies 41.3 +38.9 6 plementary medicines to “clarify,simplify and Immunostimulants 26.5 +36.6 4 streamline regulatory processes”. Cold-defence stimulants 19.5 +50.9 3 “The pre-approvalofconsumer advertising Salt-water products 19.5 +26.6 3 should be expanded to include all media direct- Salves and ointments 18.7 +43.5 3 ed to consumers,”the ASMI insists. Cough, cold and flu market 644.8 +40.0 100 “Expansion of the pre-approvals system would be conditional upon the implementation Figure1:Breakdown by product type of sales in Germany’s OTC market for cough,cold and flu remedies through of aself-regulatory pre-approvals system,”the community and mail-order pharmacies, which expanded by 40.0% to C645 million at retail prices in the first quarter of 2015 (Source –IMS Health) association notes, “along the lines of NewZea- OTC land’spre-vetting system.” The Australian government beganits review Regulatory Af fairs of complementary medicines in February,when it extended its reviewofmedicines and medical Australia ponders OTC reimbursement devices regulation to include such products. At the time, the government explained it here is a“strong argument” for removing offthe PBS” to get abetter deal for consumers. had launched areviewofcomplementary medi- TOTCmedicines from Australia’sPharma- “Wewant people who have serious condi- cines regulation in response to calls from in- ceutical Benefits Scheme (PBS), according to tions to be able to access medications on the dustry and consumers. the country’sminister for health Sussan Ley. PBS,”Ley insisted, “but it does have to be Both sides had expressed “concern” about Speaking at apress conference on the Sixth paid for,and in paying for it we have to look at the safety and efficacyofcomplementary med- Community PharmacyAgreement,Ley said OTCmedications, such as paracetamol, that are icines, the government explained, and also that there wasacase, under the supervision being accessed on prescription at high cost to about “over-regulation”. of the Pharmaceutical Benefits Advisory Com- the government.” OTC mittee, for looking at “taking OTCmedications OTC

1May 2015 OTC bulletin 13 OTC01-05-15p14-17_Layout 1 28/04/2015 17:52 Page 2

OTC MARKETING NEWS

ProductDevelopment ProductLaunches 23andMe works Mitsubishi Tanabe rolls out on return toUS topical steroids for children 3andMe says it is “actively working” with 2the US Food and Drug Administration itsubishi Tanabe Pharma has expanded (FDA) to return the health-test component of MitsOTC dermatology range in Japan with its eponymous genetic-testing kit back to the three “age-appropriate” topical-steroid products US market. specially formulated for the needs of babies In 2013, the FDAbanned the health element and children. of the product for violating the Food, Drug and Noting that there were currently no topical Cosmetic Act, as most of the intended uses for steroids on the market that were positioned for the product listed on the company’swebsite use on babies and children, the Japanese firm –such as providing “health reports on 254 pointed out that its Coat FATointment and Coat FATisrecommended for use on children aged diseases and conditions” and helping users “take cream and Coat FMDointment had been tai- over two, Mitsubishi Tanabe says, while Coat FMD steps towards mitigating serious diseases” – lored to the “barrier function”ofthe skin in has been formulated for babies made it aclass III medical device that requir- different age groups. sulfate. This is recommended for use by those ed approvalfrom the agency. Both the “gentler” Coat FATointment and aged over13years to treat dermatitis and dry However, 23andMe told OTC bulletin that “non-sticky” cream contain 1.5mg of the topi- skin, as well as rashes caused by allergies. while it had been instructed by the FDAto cal steroid prednisolone valerate acetate, 10mg Coat FATand MD would be supported cease trading the ‘health data’ element of the lidocaine and 1mg isopropylmethylphenol per throughoutJune and July with anational tele- product –known as the Personal Genome Ser- 1g, along with 5mg vitamin E. vision campaign, the firm pointed out, and con- vice (PGS) –itwas still selling the test so US The products are recommended for child- vey the message of the “three Fs”. consumers could access ancestry and rawgen- ren aged from twoto12years suffering from This stood for “fast”, representing aquick etic data. eczema and dermatitis, as well as heat rash and recovery; “for you”, to highlight that the prod- The PGS is said to give consumers access rashes caused by insect bites. uct range contained variants for all age groups; to “health, trait and ancestry information” when Meanwhile, the Coat FMDointment –con- and “fine”, to emphasise the product’sefficacy, theysend asaliva sample to the firm for analysis. taining 2.5mg prednisolone, 5mg glycyrrhetinic Mitsubishi Tanabe explained. The companyadded that it was“fully com- acid, 50mg crotamiton and 2.5mg dibucaine per The launch would be backed further by pro- mitted to completing the regulatory reviewpro- 1g, as well as 2.5mg chlorhexidine hydrochlo- motional activity through magazines and web- cess with the FDA”. ride –was designed for “babies’ delicate skin”, sites, the companynoted. Earlier this year,23andMe said it had taken the firm noted, and indicated to relieve symp- Coat FATointment and cream –aswell as an “important first step” towards returning the toms such as dermatitis, nappyrash and prickly a10g tube of Coat FMD–have recommend- kit to the US market after the FDAapproved heat, as well as chilblains. ed retail prices of ¥1,280 (C9.92) without tax, the product to test for Bloom syndrome (OTC Both the Coat FATand MD variants could while a5gtube of Coat FMDcosts ¥700. bulletin,6March 2015, page 13). also be used by adults, Mitsubishi Tanabe said. Mitsubishi Tanabe also offers in its derma- OTC The newproducts extend the ‘F’ dermatology tology portfolio the Wabonparasu ointment, range, which is led by the Flucort Fvariant, con- which shares the same formulation as the new taining fluocinolone acetonide and faradiomycin Coat FMD. OTC

Line Extensions Aspireintroduces Lecicarbon CtoUK spire Pharma has expanded the Leci- available onthe German market as Lecicarbon Medice has extended its Soventol skin-carebrand in Acarbon brand of pharmacy-only (P) con- Germany with acream-gel formulation and two sprays Kfor around 80 years, the companypointed to protect from mosquitoes and ticks. stipation-relief suppositories in the UK with a out. German firm Athenstaedt is the marketing Soventol Cremogel uses “innovative technology” as Lecicarbon Cvariant for children aged under authorisation holder for the Lecicarbon brand. a“galenic efficacy enhancer”. This ensures the sunburn and skin irritation medicine’s active ingredient, 0.5% 12 years. Once inserted into the rectum, the suppos- hydrocortisone, is released rapidly,while the cream- While the existing Lecicarbon Aproduct for itory melted, Aspire explained, which caused gel formulation has a“pleasant cooling effect” that is adults contained 500mg sodium hydrogen car- the two salts to react and create carbon dioxide “four-timeshigher than for classic creams”. Soventol Protect sprays arebased on eucalyptus bonate and 680mg sodium dihydrogen phos- to provide relief from constipation within 15- oil and aresaid to have apleasant smell and to phate per suppository,Aspire noted, Lecicarbon 30 minutes with “minimal side effects”. withstand sweat. Twoversions areavailable: one Cwas formulated with half the amounts of Promotional activity to support the launch protects against mosquitoes and other flying insects, while the other is intended to deter ticks. Both are the active ingredients. of Lecicarbon Cwould be focused initiallyon suitable for adults and children aged above one year. The Cvariant –which is indicated to treat pharmacists, the companynoted. OTC “all forms of frequent constipation” –had been OTC

14 OTC bulletin 1May 2015 OTC01-05-15p14-17_Layout 1 29/04/2015 09:43 Page 3

MARKETING NEWS OTC

ProductLaunches MarketingCampaigns Meda adds pen LloydsPharmacy campaign to Endwartsline drives healthcaremessage eda expects its Endwarts Pen wart re- Mmovertobeavailable in “about 10” Euro- loydsPharmacyaims to position itself as pean countries by the end of 2015. Lthe “integrated healthcare provider” for The Swedish firm said the formic acid-based UK consumers through anew national multi- medical device had recently been made avail- media campaign. able in “a select number of countries” –such Scheduled to run throughout 2015, the “How as Austria, France and Germany–alongside its are you today?” campaign centred around a original Endwarts topical wart-removalsolution, pharmacist and aseries of customer scenarios, to provide consumers with “different devices its parent companyCelesio noted. These reflect-

for different needs”. ed “the wide range of services” that the UK’s LloydsPharmacy’s “How areyou today?” campaign The Endwarts Pen provided “a modern solu- second-largest pharmacychain offered, “beyond centres around apharmacist and anumber of tiontoanold problem” and ensured “a precise prescription dispensing”. different customer scenarios application for warts of anycharacter”–such The promotional drive included the chain’s (NHS) England and Public Health England, as small warts on children –the firm pointed first television advertisement in four years, Cele- Swift pointed out, which were encouraging out. Meanwhile, the “classic” formic acid-based sio added, as well as radio and national print people to seek advice from pharmacists for Endwarts solution, which should be adminis- advertising and sponsorship of words and num- minor ailments and “long-termcondition-man- tered using acotton swab, was“preferably for bers quiz show Countdown. agement queries”. challenging warts such as old warts”. LloydsPharmacy’sfocus on health and well- As the pen’s“innovative”pin-point appli- Focused on health and wellbeing being wasbeing drivenbythe European Phar- cator delivered the correct dose of the active Pointing out that LloydsPharmacywas “foc- macyNetwork (EPN) concept Celesio unveiled ingredient preciselyonthe wart within one-to- used on health and wellbeing”,Nigel Swift, in late 2012 (OTC bulletin,18December 2012, twoseconds, Meda noted, the product only Celesio UK’smarketing and sales director,said page 1), Swift pointed out. the campaign reinforced howthe brand could Under the EPN concept, Celesio is rebrand- offer “advice and support on arange of health- ing all of its European wholly-owned and part- care issues” in-store and online. ner pharmacies under the Lloyds banner. “Our research tells us that non-pharmacy The refitted stores, the companysaid, would users still do not knowabout the range of ser- focus on the twomain reasons whypeople vices and advice theycan access at Lloyds- visited pharmacies –pain and skin problems – Pharmacy,”Swift maintained. “The “Howare with further indications to follow. you today?” campaign has been developed to More than 300 of the chain’s1,500 stores address those gaps.” had already gone through the transformation The Endwarts Pen provides “a modernsolution to an The campaign also supported recent initia- programme,Swift noted, with afurther 200 old problem”, Meda claims tiveslaunched by the National Health Service due to become EPN stores this year. needed to be used once aweek for “easy and OTC pain-freeself treatment”. Warts dried up and disappeared after an Line Extensions average of five weekly treatments with the pen, Meda claimed, adding that for “very large or Probiotics grow Cenovis in South Korea deep” warts, treatment could takebetween 10- 15 weeks. One pen is said to provide approx- anofiaims to expand its Cenovis Kids sup- vanilla-flavoured, teddy-bear shaped Cenovis imately 30 applications. Splement range in South Korea later this year Kids SnowProbiotics supplement wascreat- Mothers of children aged between four and with asecond probiotic variant. ed in conjunctionwith Israeli companyAnlit 12 years would be the target market for the Aspokesperson for the firm told OTC bul- using its proprietary ‘Kidi Bites microencapsu- Endwarts Pen, the firm pointed out, which letin that Sanofiplanned to position the propos- lation technology’. would be promoted through “above-the-line” ed line extension as a“hero product” in its port- Positioned as a“functional health food” that marketing activity and in-store campaigns using folio through “multiple mass-retail channels”. “helps to improve kids’ gut health”, Cenovis the keymessage: “Efficacyathand!”. The newvariant –which will be launched in Kids SnowProbiotics is said to deliver1billion The companyadded that the Endwarts Pen the third quarter –will join the existing Ceno- lactic acid bacteria –aswell as prebiotics –per could be used by diabetics and pregnant and vis Kids SnowProbiotics supplement, which supplement in a“creamy,chocolate-likeform”. breastfeeding women on the hands, feet, el- has been launched in South Korea exclusively The Cenovis Kids line in South Korea also bows and knees. through wholesale retailer Costco. The roll-out currently includes omega-3, calcium and effer- The Endwarts Pen has arecommended re- marked Cenovis’ first foray into the country’s vescent products, as well as zinc supplements tail price of C19.90. children’sprobiotic-supplements arena. and multivitamin food sprinkles. OTC Aimed at children aged overtwo years, the OTC

1May 2015 OTC bulletin 15 OTC01-05-15p14-17_Layout 1 28/04/2015 17:52 Page 4

OTC MARKETING NEWS

AdvertisingComplaints ProductLaunches Firms challenge HRA chooses digital tools Claritin ruling to educate women in UK ayer HealthCare and Sanofi’sUSOTC Barm Chattem are both set to appeal against RA Pharma is harnessing the power of dig- the US National Advertising Division’s(NAD’s) Hital tools such as ‘Quick Response’ (QR) ruling on broadcast- and print-advertising claims codes and apps to provide information on its for Bayer’sClaritin and Claritin-D allergy-re- EllaOne (ulipristal acetate) emergencycontra- lief brands. ception to consumers in the UK and Ireland. Bayer said it “respectfully disagreed” with The product wasthe first OTCcontraceptive the watchdog’scall for the companytowith- in Europe to use aQRcode –amachine-read- drawthe claim that no other allergy product able digital image –onits packaging, the firm “works faster” than Claritin-D. claimed. When scanned using asmartphone, Consumers aretaken to EllaOne’s patient information leaflet when they scan the on-pack QR code Meanwhile, Chattem –owner of the fexo- this would lead the consumer to the patient in- fenadine-based Allegra brand and Nasacort Al- formation leaflet, HRA Pharma pointed out. Pharma’swomen’shealth franchise, said the lergy24HR (triamcinolone) nasal spray –said “Since EllaOne is aone-offpurchase, we felt firm had developed acampaign that would be it wasunhappythat the NADhad ruled that this wasanimportant option as women may rolled out across the European Union (EU) to Bayer had proventhe claim that Claritin-D wish to refer to the leaflet later on, possibly after support the launch of EllaOne. “starts to work on allergies in 30 minutes”. theyhave discarded the packaging,”aspokes- This would include print materials for both Both companies will take their cases to the person for the companytold OTC bulletin. consumer-and pharmacy-focused campaigns, National Advertising ReviewBoard (NARB). HRA Pharma added that it planned to launch Welgryn pointed out, which showed aman and Chattem had originally complained to the asmartphone app that provided apharmacy woman kissing and featured the tagline: “Sex watchdog about atelevision advertisement for locator for the UK. This might also be rolled hasn’tchanged, butthe morning-after pill has” Bayer’sloratadine-and pseudoephedrine-based out in Ireland at alater date, the firm noted. (OTC bulletin,2February 2015, page 17). Claritin-D, which included claims that nothing EllaOne’savailability in the UK without a EllaOne had been introduced in nine Euro- “works faster” than the product, that it “starts prescription follows the European Commission’s pean markets to date –including Austria, Bel- to work on allergies in 30 minutes” and that (EC’s) final approvalofthe centralised switch gium, France and Germany, as well as the UK if using Nasacort, it “could take uptoaweek of the product –which contains 30mg ulipristal andIreland –HRA Pharma noted, with launches to feel maximum nasal-symptom relief”. acetate in asingle dose –atthe beginning of the due to take place “overthe coming days and Although the NADnoted that the latter two year (OTC bulletin,16January 2015, page 8). months” in countries such as Bulgaria, Croatia, claims were “literally true and supported”, it The France-based companyclaims that over Finland, Romania and Slovakia. said that the wayinwhich theywere present- 120 million European women of child-bearing However, in Germany–which until recently ed conveyed the unsubstantiated message that age will be able conveniently to benefit from wasone of the fewcountries not to have ap- Nasacort could take uptoaweek to provide quicker access to the “next generation” emer- provedanOTC morning-after pill –consumer any“appreciable” nasal-symptom relief. gencycontraception. advertising for emergencycontraceptivesis As Bayer had not provided evidence of To support the launch further in the UK, the banned under changes to medicines advertising comparative onset-of-action testing, it could not firm said it wasworking on a“substantive” lawthat were recently approvedbythe upper claim that nothing worked faster than Claritin- national digital- and print-advertising campaign, house of parliament, the Bundesrat. D, the watchdog ruled. as well as public-relations activity to “highlight Mail-order sales of morning-after pills are also Meanwhile, the NADrejected Chattem’s the advanced efficacyofEllaOne and the im- prohibited, while such products may be reim- complaint against Bayer’sstand-alone print in- portance of choice for women”. bursed by statutory health insurance funds when sert for Claritin, which featured claims that the Speaking to OTC bulletin earlier this year, dispensed to women aged 20 years and younger loratadine-based tablets were the “only num- Frederique Welgryn, global director for HRA (OTC bulletin,20March 2015, page 1). ber-one doctor-recommended non-drowsy al- OTC lergy brand” to relieve both nasal- and eye-

allergy symptoms. Asupplement and leg balm to “maintain and support However, Bayer waswarned that the in- the veins” arethe latest additions to MerzConsumer sert must be revised better to disclose what Care’s Tetesept umbrella brand in Germany. Formulated with goldenrod and redvine leaf symptoms Claritin treated. extracts –aswell as vitamin C, manganese and OTC magnesium –the Tetesept Venen Tabletten Extra supplementispositioned as “a comprehensive health package for extra-strong veins”, while Venen Balsam IN BRIEF is said to provide “immediate help from the outside” for heavy,tired legs and tension. ■ ETIXX –Omega Pharma’ssports-nutrition Merzadded that consumers’ legs would feel “refreshed and noticeably relieved” after use of the brand –has become an official partner of the balm, which is formulated with menthol as well as Royal Belgian Football Association (KBVB). goldenrod, horse chestnut and redvine leaf extract. OTC OTC

16 OTC bulletin 1May 2015 OTC01-05-15p14-17_Layout 1 28/04/2015 17:53 Page 5

MARKETING NEWS OTC

ProductLaunches MarketingCampaigns Stadavita offers Meda’s global CB12 drive “immune power” promises first-classbreath ower für ihre immun-power” –which “Ptranslates as “power for your immune- he power is yours” when you have power” –isthe tagline chosen by Stadavita for “T“first-class breath” is Swedish com- its Rydex375 Immun-Power immune-support panyMeda’smessage to consumers in anew supplement in Germany. global campaign that supports its CB12 medi- Containing 1-3/1-6 ß-glucan and vitamin C catedmouthwash. derivedfrom acerola fruit, the pharmacy-exclu- Comprising television, print, social-media sive supplement wassuitable for those whose and online advertising –aswell as point-of-sale immune systems were “facing constant chal- materials –the campaign, created by advertis- lenges due to multiple pressures often unavoid- ingagencyServiceplan Health &Life in Mun- able in everyday life”, according to Stefan Retz- ich, Germany, is set to run in all 18 markets in laff, the firm’schief executive officer. which the oral-care brand is present, including The predominantly black-and-white campaign depicts Stadavita recommends adaily dose of two Belgium, Germany, Russia and the UK. the “CB12 effect” through abright-blue glow in the capsules, which provides 375mg of ß-glucan and The campaign is claimed by the agency featured character’s eyes 64mg vitamin C. to convey the “emotional benefits” of using to neutralise the “substances and processes that Although astandalone product, Rydex375 CB12 mouthwash –containing zinc acetate cause bad breath” for up to 12 hours. The prod- Immun-Power complemented other immune- and chlorhexidine diacetate –and position it uct range also includes aBoost breath-freshen- support products in Stadavita’sportfolio, the “more as lifestyle product” that offers a“daily ing chewing gum. shot of confidence” than as ahealthcare offering. Serviceplan Health &Life added that CB12 “Everyone who uses the product gets not mouthwash’spackaging had also been updated only superb breath, butpower and confidence,” to include the “first-class breath” message, while Serviceplan Health &Life maintained. country-specificwebsites were also being revamp- ed to reflect the product’snew positioning. Six different characters Meanwhile, in the UK, Meda is offering Featuring up to six different characters –a consumers the chance to win a250ml bottle of tango dancer; abusinessman; arock star; amar- CB12mouthwash and a£50.00 (C70.00) vouch- tial-arts fighter; and asophisticated man and er for department store Selfridges every two Avideo for Rydex375 features acharacter with woman –the predominantlyblack-and-white weeks until 29 May as part of the campaign. glowing orange eyes campaign depicted the “CB12 effect” through To enter,participants must vote for the char- firm noted, such as its Eunova supplement line. “a bright-blue glow” in the eyes of the protag- acter from the television advertisement –which “Long-term” marketing activity wasunder- onist, the agencypointed out. also appears on the brand’sFacebook page – waytopromote Rydex375, Stadavita said, and CB12 mouthwash –sold in some countries that they“most relate to” via the cb12.co.uk included print-advertising campaigns and pub- under the SB12 brand name –issaid by Meda website for the chance to be chosen at random. lic-relations activity aimed at consumers, as well OTC as sales materials for pharmacists. Meanwhile, avideo on aspecially-created Afather and son dressed as superheroes arethe consumer website, rydex-immunpower.de –and focus of GlaxoSmithKline’s (GSK’s) first national television advertisement to supportits recently- Stadavita’sYouTube channel –shows images launched Panadol Actifast capsules in Thailand. of people undertaking extreme activities such “I’m just aregular dad, but to him, I’m a as rock-climbing, skydiving and surfing, while superhero,” the father points out in the 30-second commercial. As he is shown lifting his son in the air abacking track highlights that Rydex375 “brings and pretending to help him fly,headds: “Together out the power in you, no matter what you do” we’retaking down the bad guys, and Idon’t want and provides “the energy that lasts”. It also fea- anything to take out our fun.” The father is then seen rubbing his forehead in tures aman with glowing orange, reptilian eyes. pain, while avoiceover states: “When you have pain Apack of 60 Rydex375 Immun-Power cap- and fever,take Panadol Actifast.” sules has arecommended retail price of C34.95. Scheduled to air until the end of October 2015, the creative also highlights that Panadol Actifast OTC –containing 500mg paracetamol as well as sodium bicarbonate –isabsorbed into the bloodstream twice as fast as the existing Panadol 500 tablets IN BRIEF (OTC bulletin,17April 2015, page 17). Agraphic shows aPanadol Actifast capsule ■ PFIZER CHINA is promoting its Centrum speeding past the original Panadol 500 product. Junior food supplementthrough product place- The commercial is also being supported through out-of-home advertising at train stations, online ment in television drama “TigerMum”. videos and advertising banners on websites. OTC OTC

1May 2015 OTC bulletin 17 Full Pg Adv.1 20-4-15_Layout 120/04/2015 14:28 Page 1

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Awards sponsored by: OTC01-05-15p19Events_Layout 1 28/04/2015 16:50 Page 2

EVENTS OTC

14-18 June MAY 26-28 May ■ 51st DIA Annual ■ 51st AESGP Annual Meeting 28-29 May Meeting Barcelona, Spain ■ Pharmaceutical WashingtonDC, US ‘Citizen empowerment: Amegatrend of the 21st century’ is the theme RegulatoryAffairs This five-day annual meeting is of this three-day event run by the Association of the European Self- in the Middle East organised by the Drug Informa- Medication Industry,the AESGP. London, UK tion Association (DIA). There will be sessions on: ‘Newtechnology – new guidance – better Countries to be discussed at this Contact: DIA. self-care’; ‘Self-care medical devices and food supplements: Newdrivers two-day meeting include Bahrain, Tel: +1 888 257 6457. in the self-care market?’; and ‘Switching: Amegatrend?’. Egypt, Israel, Kuwait, Lebanon, Fax: +1 215 442 6199. Speakers will include: Werner Knöss, Andreas Pott and June Raine Saudi Arabia and Yemen. Email: [email protected]. of the European Medicines Agency(EMA); Bernhard Url of the Euro- Contact:Management Forum. Website: www.diahome.org. pean Food Safety Authority (EFSA); Dagmar Roth-Behrendt, former Tel: +44 1483 730071. 18-19 June member of European Parliament; Jaume Peyofthe Spanish self-med- Fax: +44 1483 730008. ication association (ANEFP); Brian McNamara and Roger Scarlett- ■ EU Pharmaceutical Email: registrations@management- Regulations Smith of GlaxoSmithKline Consumer Healthcare; Sastry Chilukuri of forum.co.uk. McKinsey; Vincent Warnery of Sanofi; and Andy Tisman of IMS Health Website: www.management- London, UK Consumer Health. forum.co.uk. Atwo-day course providing an Contact:AESGP.Tel: +32 2735 51 30. Fax: +32 2735 52 22. overviewofthe European regu- Email: [email protected]: www.aesgp.eu/51. JUNE latory environment, procedures and obligations. at this one-day workshop. Tel: +44 20 7551 9785. 1-2June Contact:Management Forum. Contact:SMi Group. Email: [email protected]. Tel: +44 1483 730071. ■ EuroPLX 58 Tel: +44 20 7827 6000. Website: www.vitafoodsasia.com. Fax: +44 1483 730008. Munich,Germany Fax: +44207827 6001. This two-day conference will pro- Email: registrations@management- 10 September Email: [email protected]. vide aforum for business devel- forum.co.uk. Mutual Recognition & Website: www.smi-online.co.uk. ■ opment decision makers for dis- Website: www.management-forum.co.uk. Decentralised Procedure cussing and negotiating collabor- 22-24 June AUGUST Bonn, Germany ative agreements in licensing, mar- This one-day seminar will look at ■ Pharmacovigilance keting, and distribution of patented 20 August regulatory strategy and submis- London, UK medicines, generics, biosimilars, sion management. This three-day event will look at ■ Basics of OTCproducts, medical devices Contact:Forum Institut the principles and practice of glo- Pharmaceutical and food supplements. für Management. bal pharmacovigilance. RegulatoryAffairs Contact:RauCon. Tel: +49 6221 500 680. Contact:Management Forum. London, UK Tel: +49 6221 426 2960. Fax: +49 6221 500 555. Tel: +44 1483 730071. This one-day course is run by The Fax: +49 6222 9807 77. Email: h.wolf-klein@forum- Fax: +44 1483 730008. Organisation for Professionals in Email: [email protected]. institut.de. Email: registrations@management- Regulatory Affairs (TOPRA). Website: www.europlx.com. Website: www.forum-institut.com. forum.co.uk. Contact:TOPRA. 8-9June Website: www.management-forum.co.uk. Tel: +44 20 7510 2560. OCTOBER ■ Pharma Marketing Email: [email protected]. 23-25 June Frankfurt, Germany Website: www.topra.org. 12-14 October Speakers from Galderma, Johnson ■ Medical Device 12th TOPRA 20-21 August ■ &Johnson and Omega Pharma RegulatoryAffairs Annual Symposium will attend this two-day seminar, in Emerging Markets ■ Marketing Authorisation in Russia/the Berlin,Germany which will be conducted largely Berlin,Germany Athree-day event run by The Org- in German. Dayone of this three-day confer- CIS countries anisation for Professionals in Reg- Contact:Inspirato. ence will focus on Russia and the Berlin,Germany ulatory Affairs (TOPRA). Tel: +49 6172 981 9680. Commonwealth of Independent Countries to be discussed at this Contact:TOPRA. Fax: +49 6172 981 9689. States (CIS), while day twowill two-day seminar include Belarus, Tel: +44 20 7510 2560. Email: [email protected]. coverthe Asia-Pacific region. Day Kazakhstan, Russia and Ukraine. Email: [email protected]. Website: www.inspirato.de. three will discuss Latin America, Contact:Forum Institut Website: www.topra.org. Turkey and the Middle East and für Management. 9June North Africa (MENA). Tel: +49 6221 500 680. 14-15 October ■ FDA: Marketing Contact:Informa UK. Fax: +49 6221 500 555. ■ AESGP Conference Authorisation in the US Tel: +44 20 7017 7481. Email: [email protected]. Brussels,Belgium Frankfurt, Germany Fax: +44 20 7017 7823. Website: www.forum-institut.com. This two-day conference, subtitled US Food and Drug Administration Email: [email protected]. ‘Substance-based medical devices: (FDA)regulations will be compar- Website: www.informa-ls.com/ SEPTEMBER An important part of self-care’, ed with European Union (EU) law MedDevRAEM. is being organised by the Associ- at this one-day event. 2-3September ation of the European Self-Med- Contact:Forum Institut 25 June ■ Vitafoods Asia ication Industry,the AESGP. für Management. ■ OTC Medicines Hong Kong Contact:AESGP. Tel: +49 6221 500 680. Growth Perspective Atwo-day exhibition and confer- Tel: +32 2735 51 30. Fax: +49 6221 500 555. London, UK ence focusing on nutraceuticals, Fax: +32 2735 52 22. Email: h.wolf-klein@forum- OTCdrugs, food supplements, as well as functional foods and Email: [email protected]. institut.de. medical devices and prescription- drinks and dietary supplements. Website: www.aesgp.eu/events/ Website: www.forum-institut.com. to-OTC switches will be covered Contact:Informa UK. Brussels2015/.

1May 2015 OTC bulletin 19 OTC01-05-15p20-23_Layout 1 28/04/2015 18:37 Page 2

OTC BUSINESS STRATEGY WBA tackles the new retailing landscape

When Walgreens Boots Alliance (WBA) wasformed at the start of the year, the move away from hypermarkets and out-of- the business created anew cross-divisionalunit –Global Brands –toensure town retail parks, and towards ‘one-click’ order- ing and next-day delivery. the new entity’sretail businesses kept pace with consumers. Matt Stewart “Convenience has suddenly become mea- looks at howit plans to stay one step ahead in arapidly-shifting environment. sured in aday,” he pointed out. This desire for convenience tied in with the he retail industry is under- experience in avery cost-effective way,”Mur- final trend, Murphysaid, namely the “always going unprecedentedglobal phypointed out. on” consumer.With the proliferation of high- and structural change,”ac- Harnessing this feedback loop would play speed broadband and wireless internet, consum- “Tcording to KenMurphy, pres- akey role in developing WBA’sproduct offer- ers were constantly connected to digital services ident of Walgreens Boots Alliance’s(WBA’s) ing, Murphysaid, with the companyfocusing and were unforgiving of those firms that pro- newly-established Global Brands unit. not only on howconsumer behaviour was vided apoor user experience, he warned. “The once-invincible, category-killer models changing, butonwhat people actually wanted. These global trends, Murphysaid, had led of Tesco and Walmart, where value is traded There were six trends that had been gaining directlytothe creation of the Global Brands for volume, are under huge pressure,”Murphy momentum overthe past fewyears which were unit within WBA, when Walgreens and Alliance claimed, “because volume growth has slowed changing the structure of the global retail in- Boots merged at the end of 2014 (OTC bul- dramatically and, frankly,there are not that dustry,Murphyclaimed. letin,16January 2015, page 5). manycategories left to kill.” “Tovarying degrees,”headded, “these Operating across WBA’sRetail Pharmacy Outlining WBA’splans to adapt to, and be trends impact both retail and product brands.” USA and Retail PharmacyInternational divi- successful in, the newretailing world, Murphy Highlighting authenticity as the first of the sions, Global Brands had been set up to pro- pointed out that shoppers were slowly moving six trends, Murphysaid that businesses that were vide the retail businesses with a“sustainable, away from long-list, weekly shops and towards not “authentic”would be quickly found out. competitive advantage through outstanding cus- shorter,more frequent trips to retailers. “If you don’tstand for something, you will tomer insight and commercial best practice”, “The combination of mobile devices and quickly become irrelevant,”hewarned. Murphyexplained. superfast broadband has created an inflection The “global village” trend wasalso impor- To do this, the unit had establishedthree core in the growth curveofe-commerce,”henoted, tant, Murphynoted, explaining that this trend operational clusters, he noted, based around in- “and dramatically increased the importance of wasbased on howproducts and ideas nowtrav- sight and commercial best practice; product the digital channel.” elled around the world faster than ever before. brands; and sourcing and manufacturing. “It has transferred power to the consumer, “Brand me” reflected consumers’ desire to “Global insights and best practice will drive and made prices transparent and comparisons have products and services tailored towards their real commercial advantage through an agile, easy,” Murphysaid, “while creating awhole individual needs, Murphyadded, while “cool responsiveteam of insight professionals, respon- host of newcompetitorsand achannel that is austerity” highlighted that while theywanted sible for all insights and researchacross WBA,” expensive to serve.” tailored services, consumers also wanted them he claimed, adding that these professionals “While this has made the industry structur- at the right prices and were keen to be seen would be embedded locally within retail busi- ally more expensive,itprovides retailers with to be getting the best deal possible. nesses in Chicago, London, and Nottingham. the opportunity to get instant feedback from The return of convenience wasalso chang- “In our view, the ability to access real-time customers and to personalise their offers and ing the retail landscape, Murphystated, with data about customer behaviour,turn it into

Authenticity Global village Stand for something. Ideas and products reach the Be relevant. Build trust. world faster than ever.

Brand me Cool austerity Consumers expect a Value for moneyiskey; personalised experience. customers want more.

Convenience Always on Provide ahassle-free, 24/7 access.Zero tolerance seamless service. Now. to poor experiences.

Ken Murphy,president of Walgreens Boots Alliance’s Global Brands unit, highlights trends changing the face of global retailing (Source –Walgreens Boots Alliance)

20 OTC bulletin 1May 2015 OTC01-05-15p20-23_Layout 1 28/04/2015 18:37 Page 3

BUSINESS STRATEGY OTC

Global Brands lopment Brand ve Insight and and Product De Best Practice Global Sourcing

Retail Businesses

The Global Brands unit has three areas of focus which feed into Walgreens Boots Alliance’s retail businesses (Source –Walgreens Boots Alliance)

insights quickly and to incorporate it into our ownidentity and equity –such as No7 and Soap and International Retail also sit on my leader- commercial decision-making is acore compe- &Glory –that the companybelieveshave ship team and have adual reporting line,”Mur- tence of retail today,” he added. global potential; and private-label brands, such phyadded, “so this createsavery tight, symbi- “Weare also are increasingly seeing the as Well at Walgreens and Boots Pharmaceu- otic relationship.” same consumer trends emerge across all our ticals, where the products have aclose relation- Turning to the firm’sprivate-label brands, markets,”Murphysaid, “and therefore our in- ship with the mother retail brand. such as Boots Pharmaceuticals and Well at tent is to create global centres of excellence in Addressing the global brands, Murphysaid Walgreens, adifferent approach had been de- insights, analytics, research, loyalty,commer- the strategy with these lines wastobefirst-to- cided upon, Murphyrevealed. cial best practice,and vendor collaboration.” market in carefully-selected ‘hero’ categories “These brands, in our view, have twoclear This structure would allowthe companyto and to have “superior product quality delivered roles, either as an entry point value-anchor for invest in “cutting-edge technology and attract at great value and with expert care”. our proposition, or as abetter-value alterna- top talent in the field, and give these employees With that in mind, the companyhad created tive to the national brand,”heexplained, “and an exciting career path,”Murphypointed out. global teams for the No7 and Soap &Glory we want to be much clearer in separating the At the same time, it would share techniques products between these roles.” learned by different businesses within WBA “The ability to access real-time data “Where we have real differentiated andhelp the firm become an important partner innovation,”Murphyinsisted, “we for the major consumer-goods firms. about customer behaviour,turnitinto want to bring it to the attention of the “Webelieve this area has the capacity to insights quickly and incorporate it consumer and achieve its price poten- generate significant economic value overthe into commercial decision making is tial by branding it in the optimal way.” next five years,”hemaintained. “Specifically, In terms of organisation structure, we will seek to upgrade the pricing and promo- acorecompetence of retail today.” the private brands team would follow tion models, both in the UK and the US; intro- the same logic as its global brands duce category management into our newmar- beauty and toiletries brands, Murphyexplain- counterpart, Murphysaid, with the exception kets, such as Chile and Mexico; guide the ed.These teams are responsible for brand strat- thatthere were anumber of private-label brands business to makethe right assortment decisions, egy, product development, and brand activation in certain categories that were essentially “local particularly as we seek to rationalise ranges in the relevant markets. in nature”. These would be managed and em- across our core markets; and introduce the right “Normally in aconsumer-goods business bedded within the category team locally. ranges into the markets where our business theysplit brand strategy and brand activation,” The product brands’ function in the Global is underdeveloped.” Murphypointed out. “Webelieve we have a Brands unit would also house WBA’sresearch The second componentofthe unit wasprod- unique advantage by combining these twoto- and development operation, Murphypointed uct brands, Murphysaid. Global Brands would gether.And because we embed our brand acti- out, adding that he believedthat its innovation develop a“world-class portfolio of health and vation teams within our retail organisations, capability could “really punch above its weight”, beauty product brands to drive differentiation we can execute much faster than anyother thanks to the wayithad been organised. and profitable growth for our partner retail- firm in this market.” “For research and development, we focus ers”, he claimed. “This relationship is further strengthened on our core competencies of health and beauty,” WBAhas split broadly its product brand by the fact that the commercial leaders in our Murphyexplained, “and within that we are clear offering into two: global brands that have their core retail businesses of Walgreens, Boots UK, where we need market-leading technology.”

1May 2015 OTC bulletin 21 OTC01-05-15p20-23_Layout 1 28/04/2015 18:37 Page 4

OTC BUSINESS STRATEGY

“Weare developing apartnership approach finding the cheapest products,”Murphyinsisted. synergies across the firm through “superior prod- to research, forging strong links with aglobal “While it provides rawmaterials for manu- ucts and better cost of goods”, Murphysaid. network of scientists,”hesaid, “and we inno- facturing, it also provides the quality and ethics Global Brands would also facilitate “cross- vate around technology platforms that have audit capability to ensure all our suppliers and fertilisation of product ideas across WBA’smar- multiple applications, rather than asingle prod- partners are working to the quality and ethical kets”, he added, and support the Boots UK and uct or asingle category application.” standards that our brands demand,”henoted. Walgreens retail businesses to improve their Furthermore, the companytook advantage Furthermore, it also acted as an innovation pricing and promotions. of its sourcing and manufacturing capabilities scout across Asia, Murphysaid, looking for Furthermore, there would be arelaunch of to introduce industrial design early into the pro- newtrends and products that were emerging in the Soap &Glory brand in the US with anew cess, Murphyrevealed, “to engineer out all the countries likeJapan and Korea that could have pricing and channel strategy,Murphyrevealed, non-value-added elements” and to ensure that applications across the rest of the world. and apush to sustain the strong performance of the process had optimised the product from the The sourcing business within Global Brands the firm’spower brands such as Well at Wal- cost of goods and manufacturing point of view. would also act as alink between WBA’sretail greens, Boots Pharmaceuticals and No7. “Wealso work with our retail colleagues businesses and its manufacturing operations, “The longer-term opportunitiesare to trans- to ensure the product will project well on the Murphyexplained, ensuring that the firm had formour category-management capabilityacross shelf,”headded. an “agile supply chain” capable of responding the group,”Murphysaid. Within the innovation team, WBAhad two quickly to changes in customer demand. This included driving improvedmargin and additional capabilities, Murphysaid. Highlighting WBA’smanufacturing capabil- sales performance; supporting the transforma- ities, Murphynoted that the business wasasuc- tion of Walgreens into abeauty and personal- Forecast upcoming trends cessful contract manufacturer for others, such care destination; and significantly increasing the “The trends and design team forecast the as GlaxoSmithKline and Procter &Gamble. revenue potential of WBA’sdata and analytics trends in beauty and healthcare for the coming “Our manufacturing capability is currently capability with suppliers, he pointed out. season, and also design arange of gifts for us European-centric,”Murphyadmitted, “but this Global Brands would also introduce WBA’s for the big seasonal and holiday periods,”he will change overtime to meet demand in the portfolio of brands to newmarkets such as pointed out. “Wealso have abusiness develop- Americas and also in Asia.” Mexico and Chile, Murphynoted, and continue ment team whose core role is to look for ways “Wehavethree plants based in France, to look for breakthrough innovation and high- to fill the gaps we have identified in our port- Germanyand the UK,”hepointed out, “each of potential brands to acquire that would comple- folios, either through licensing agreements or which have different specialisations and also ment the firm’sexisting portfolio. partnerships that could include equity partici- provide us with an innovation capability.” pation or outright acquisition.” Themanufacturing team had proventhem- Sustainable competitive advantage Turning to howthe Global Brands business selvesable to respond to changes in consumer Summing up Global Brands’ role in WBA, would handle sourcing and manufacturing, Mur- demand, Murphysaid, and this had been asig- Murphysaid that the unit’sgoal wasto“give phynoted that, following the merger,WBA had nificant contributor to the success of anew skin- the company’sretail businesses across the setupasingle global sourcing organisation op- care serum launch last year,when the business world asustainable competitive advantage by erating on behalf of all the divisions. sold its entire 12-month stock in 12 weeks. turning data into insights that we can use to There were sourcing capabilities co-located Looking ahead, Murphyrevealed that he was understand customer needs faster than the com- within the Walgreens and Boots UK businesses, seeing anumber of both short- and long-term petition, and to use our commercial skills to he added, and there wasathird centre based in opportunities which were capable of “generat- identify howwe’re going to meet those needs”. Hong Kong with satellite offices in Bangkok, ing significant economic value”. “And makemoneyinthe process,”Mur- Seoul, Shanghai and Tokyo. In the near-term, the aim of Global Brands phyconcluded. “Sourcing plays amuch broader role than just wastocontinue driving significant sourcing OTC

Insights Quality Deep understanding of Superior products, with market and customers. the quality customerswant.

Value Expertise Brandsand products Sharing knowledge with represent true value. customers and consumers.

Speed Marketing mix Bringingthe best products ‘Mass consideration’ with quicker than anyone else. lowmedia investment.

Global Brands’ goal is to provide the insights and commercial best practice to give Walgreens Boots Alliance’s retail businesses asustainable competitive advantage (Source –Walgreens Boots Alliance)

22 OTC bulletin 1May 2015 OTC01-05-15p20-23_Layout 1 28/04/2015 18:37 Page 5

PEOPLE OTC

Retailers Manufacturers NBTY recruits Mannelly to step down seniorleaders as Prestige Brands’CEO Snatural-products firm NBTY has added Ufour senior executivestoits management team to “spearhead strategic growth initiatives” atthew Mannelly is to retire as presi- Matthew for its branded businesses. Mdent and chief executive officer of Pres- Mannelly Derek Bowen –formerly senior vice prestige Brands on 1June after almost six years ident of marketing at beauty brand Coty –has at the helm of the US consumer-goods firm. been named as senior vice president and gen- Mannelly would be replacedbythe com- eral manager for vitamins, minerals, herbals pany’scurrent chief financial officer, Ron Lom- and supplements (VMHS). bardi,Prestige said, adding that it had started Noting that Bowen had also held positions the search for Lombardi’ssuccessor. at Procter &Gamble, Sara Lee and Unilever, Gary Costley, lead director of Prestige’s NBTY said he would bring to his newrole 20 board of directors, said that Lombardi’s“strong years’ experience in “building and marketing leadership skills and breadth of experience”had Ron Lombardi well-known brands”. played akey role in the firm’srecent growth. AndreBranch had also joined as chief mar- Lombardi –who joined Prestige in Decem- keting officer,the companypointed out, with a ber 2010 from private-equity firm Waterbury brief to focus on strategies to build further International Holdings–had been identified by brands such as Nature’sBounty,Osteo Bi-Flex the board as the “ideal successor” to Mannelly, and Solgar,including the creation of a“robust Costleypointed out, and the right person to lead innovation pipeline”. the companythrough its next phase of growth. Branch brought more than twodecades of Praising Mannelly’scontribution to Prestige, “brand-building experience” from companies Costleysaid that he had “developed and success- Monistat –asthe leader in awide-ranging fem- such as Kraft Foods and L’Oreal, the firm added. fully executed against avery specific strategy”. inine-care portfolio with annual sales of approx- Meanwhile, NBTY has named Bradley Under Mannelly’stenure, Prestige has rapid- imately US$130 million. Charron as senior vice president and general ly expanded its consumer healthcareoffering Insight added to the basket of brands –in- manager for sports and active nutrition, with through anumber of acquisitions both in the cluding the BC and Goody’sanalgesic lines – responsibility for brands such as Balance Bar, US and elsewhere. the firm acquired from GlaxoSmithKline in Met-Rx and Pure Protein. Most recently,Mannelly led the US$750 2012 (OTC bulletin,16April 2012, page 5). Prior to his previous role as vice president million (C693 million) acquisition of Insight Outside of North America, Prestige acquired of marketing for yoghurt brand Chobani, Char- Pharmaceuticals, which he said wasthe firm’s Australia’sCare in 2013 to expand its reach ron held senior leadership positionsatPepsiCo, “largest transaction yet” and gave it a“leading in the Asia-Pacific region (OTC bulletin,26 as well as clothing brands Liz Claiborne and platform in feminine care” in North America July 2013, page 3) and added the oral-rehydra- Under Armour. (OTC bulletin,9May 2014, page 9). tionbrand HydralyteinAustralia and NewZea- The firm has also promoted Jill Staib to The deal also gave Prestige its first US$100 land less than ayear later (OTC bulletin,25 the newly-created position of vice president of million brand –the yeast-infection treatment April 2014, page 3). strategic initiativesand private label. OTC Commenting on the appointments, Brian Wynne, president of NBTY Americasand chief Manufacturers executive officer of the firm’sUSNutrition business, said that this injection of “experi- Navamedic raids IMS for chief executive enced newtalent” would bring “fresh thinking and perspective”tothe company, while com- avamedic has appointed Tom Rönnlund Navamedic pointed out. plementing the existing team of “passionate Nas its chief executive officer,after asearch Currently IMS Health’sgeneral manager and drivenleaders”. that has lasted for almost twoyears. for the Nordic &Baltic Region, Rönnlund has Derek Bowen Rönnlund –who is joining Navamedic from also held anumber of marketing and general IMSHealth –will replace interim chief exec- management positions at Bristol-Myers Squibb utive officer, Håkan Josephsson,on18May and Eli Lilly. 2015. Josephsson took up the position in June Commenting on his newrole, Rönnlund 2013 after Olof Milveden stepped down. said he waslooking forward to building on the The firm said that Rönnlund’s“vast industry “great work” done by the current management experience”inboth Nordic and international team in “focusing the portfolio for continued markets would reinforce the company’s“pos- growth” and actively pursuing portfolio expan- itive revenue and profit development”. sion through partnerships and acquisitions. OTC Josephsson would remain with the company, OTC

1May 2015 OTC bulletin 23 OTC BC BLACK House Ad 04-2015_Layout 123/04/2015 10:59 Page 1

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