Johnson & Johnson Recall Cuts OTC Sales by Quarter
Total Page:16
File Type:pdf, Size:1020Kb
OTC30-04-10p1.qxd 27/4/10 13:01 Page 1 30 April 2010 COMPANY NEWS 3 Johnson & Johnson recall Ransom has no plans to 3 sell more brands Recall not only reason for 4 J&J’s slump cuts OTC sales by quarter Omega Pharma sees sales rise 5 by 4% to over C200 million oluntarily recalling Tylenol and other Neil Consumer Healthcare business a warn- Boehringer OTC goes up 6 VOTC products in response to regula- ing letter about the unit’s Las Piedras plant in despite economic crisis tory concerns slashed US sales by Johnson Puerto Rico. Pharmstandard snaps up stake 7 & Johnson’s OTC & Nutritionals business The firm immediately initiated a voluntary Novartis OTC grows ahead of market 8 unit by a quarter in the first three months recall of certain lots of its Benadryl, Motrin, Economic crisis hits turnover at Krka 9 of this year. Rolaids, Simply Sleep, St Joseph Aspirin and Sales by the business in the US had slump- Tylenol products made at the facility (OTC 36.6 restructures as 10 turnover declines ed by 25.3% to US$542 million (C404 million) bulletin,10 February 2010, page 22). The re- in the period, revealed Dominic Caruso, John- call applied to the Americas, the United Arab GENERAL NEWS 11 son & Johnson’s chief financial officer,who ad- Emirates (UAE) and Fiji. mitted that second-quarter sales would also be Consumer reports of “an unusual mouldy, EMA recommends bufexamac 11 hit by the recall. He claimed, however, that the musty or mildew-like odour that, in a small withdrawal action had “not really impacted physician rec- number of cases, was associated with tempo- Germany’s BAH fears the rise of 12 ommendation or consumer preferences” for the rary and non-serious gastrointestinal events” mail-order pharmacy company’s OTC products. had already prompted McNeil to carry out two German committee to 13 In February,the US Food and Drug Admin- recalls of Tylenol Arthritis Pain caplets in Jan- consider orlistat switch istration (FDA) sent Johnson & Johnson’s Mc- uary of this year and in November 2009. MARKETING NEWS 14 Reckitt revamps E45 14 Endless Moisture Zegerid OTC could face store brands Mentholatum invests in Regenovex 15 egerid OTC could face generic competi- ing a store-brand version of Zegerid OTC but FEATURES 19 Ztion in the US, after a Delaware district has not yet stated publicly whether it has fil- court found that five patents protecting San- ed an ANDA. Centralised route requires 19 passion and perseverance tarus’ Zegerid (omeprazole/sodium bicarbon- Schering-Plough Healthcare Products, which – Manfred Scheske talks about key ate) capsules and powder for oral suspension is Santarus’ partner in the OTC market, has just issues facing the OTC industry until 2016 were invalid due to obviousness. started a major consumer advertising campaign Par Pharmaceutical currently holds tenta- for Zegerid OTC, which is available as capsules REGULARS tive approval for 20mg/1,100mg and 40mg/ for treating frequent heartburn containing 20mg 1,100mg capsules. omeprazole and 1,100mg sodium bicarbonate Pharmacy viewpoint 16 Santarus, which plans to appeal, said it was (OTC bulletin,16 April 2010, page 14). A spo- – Flomax flows to top of rankings not aware of any companies other than Par that kesperson for Schering-Plough’s parent com- Events – Our regular listing 18 had filed an Abbreviated New Drug Applica- pany Merck & Co told OTC bulletin that the People – Bayer recruits Reinhardt 21 tion (ANDA) for omeprazole/sodium bicarb- “court decision does not change Merck Con- People – Connors joins Prestige 22 onate products. sumer Care’s commitment to the launch and People – Sigma chief resigns 23 Perrigo has expressed an interest in produc- ■ Continued on page 12 OTC30-04-10p2-3.qxd 27/4/10 13:03 Page 2 OTC30-04-10p2-3.qxd 27/4/10 13:03 Page 3 COMPANY NEWS OTC Business Strategy Ransom has no plans to sell more brands illiam Ransom & Son said it did not plan brands (OTC bulletin,31 March 2010, page 8). Wto sell any more brands after securing a It has also terminated its supply and licensing new long-term financing agreement. agreement for the Medibee honey brand (OTC The UK-based natural products specialist bulletin,26 February 2010, page 11). has made a series of divestments to help re- Ransom pointed out that selling these brands duce its bank debt and provide working capi- had helped reduce its bank debt to £2.6 million tal, as part of the turnaround plan introduced (C3.0 million) as of 31 March 2010. This com- in September 2008 (OTC bulletin,29 Septem- pared with £3.8 million a year earlier. ber 2008, page 6). The company also sold the Pavacol-D and This year alone, Ransom has sold its Meta- Radian B brands in 2008 for £3.1 million (OTC nium nappy-rash brand (OTC bulletin,20 Jan- bulletin,18 December 2008, page 3). uary 2010, page 3), its honey-based Manuka A spokesperson for Ransom told OTC bul- Gold brand (OTC bulletin,10 February 2010, letin that although the company did not plan page 13) and its Snufflebabe and Easy Breathe to divest more brands it was still pursuing the sale of its Pharmaceuticals contract manufac- turing division. The first products in the Ransom Naturals range are now available in selected Tesco outlets in the UK OTC bulletin Under the new financing agreement with KBC Business Capital, Ransom said its exist- ufacturing divisions and cost-reduction initia- 30 April 2010 Number 341 ing debt facilities had been replaced by asset- tives had helped cut the underlying loss, but based facilities comprising an accounts receiv- progress had been hindered by “challenging Editor & Publisher: Deborah Wilkes able finance facility,stock facility and a plant market conditions and brand disposals”. Associate Editors: Aidan Fry and machinery long-term loan. The new facil- Exceptional costs – excluding goodwill im- Mike Rice ities would provide the company with the addi- pairment, financing costs and gains on asset Senior Assistant Editor: Matt Stewart tional working capital required to build on the disposals – were expected to be around £1.1 Assistant Editors: Joanne Grew, Jenna Lawrence, progress it had made since launching its turn- million for the year,said Ransom, adding that Dave Wallace around plan, Ransom noted. this reflected the cost of refinancing the com- Advertising Controller: Debi Minal The new financing agreement was announc- pany’s debt and restructuring costs associated ed as Ransom revealed that it expected to re- with the turnaround plan. Marketing Manager: Val Davis port a reduced underlying operating loss – be- Ivor Harrison, Ransom’s chief executive, Editorial, Subscription and Advertising fore exceptional costs, non-recurring items and noted that the company had just introduced the enquiries should be addressed to: OTC bulletin, OTC Publications Ltd, 54 Creynolds Lane, Solihull, goodwill impairment – of approximately £0.5 first products in its Ransom Naturals range. Two West Midlands B90 4ER, UK. million for the year ended 31 March 2010. This digestive juice products are now available in Tel: +44 1564 777550. Fax: +44 1564 777524. compared with £1.9 million in the same period selected outlets of supermarket chain Tesco in E-mail: [email protected]. a year earlier. the UK, and more products will be launched Subscriptions Ransom said better performances by its man- in the near future. Annual subscriptions to OTC bulletin in Europe are £595.00 for OTC single copies and £345.00 for additional copies to the same ad- dress, including delivery. Subscriptions to addresses outside Eur- ope are subject to an additional charge of £30.00 to cover postage. Subscription enquiries in Korea should be directed to Pharma Mergers & Acquisitions Koreana Ltd, 14th Floor,KTB Network Building, 826-14 Yeoksam- dong, Kangnam-gu, Seoul 135-080, Korea (Tel: +82 2 554 9591; Fax: +82 2 563 8289; E-mail: [email protected]). Valeant expands with Brazil deal Advertising Advertising rates and data are available on request from the ad- aleant Pharmaceuticals International is set The deal was expected to close in the second dress above or at www.otc-bulletin.com. Vto expand its presence in Brazil still fur- quarter of 2010, Valeant said. About OTC bulletin OTC bulletin is published 20 times a year by OTC Publications ther by acquiring another unnamed branded This latest acquisition came after Valeant Limited: twice monthly in February,March, April, May,June, Sep- tember,October and November; and monthly in December,Jan- generics and OTC company for BRL97.0 mil- said in March that it had agreed to acquire for uary,July and August. A subscription to OTC bulletin includes lion (C41.4 million). US$28 million (C21.0 million) another unnam- the weekly electronic newsflash, news@OTCbulletin,which is published around 45 times a year. OTC bulletin is printed by the The US-based company said the Brazilian ed Brazilian firm, which has now been named Warwick Printing Company Limited, Caswell Road, Leamington firm had generated annual sales of approxi- as branded generics and OTC company Insti- Spa CV31 1QD, UK. mately BRL49.0 million in 2009 from a pro- tuto Terapeutico Delta. It also acquired a man- No part of this publication may be copied, reproduced, stored in a retrieval system or transmitted in any form without prior duct portfolio that largely comprised branded ufacturing plant in Brazil for the same price permission from OTCPublications Ltd. generics, but also included topical OTC lines. (OTC bulletin,31 March 2010, page 3). ©OTC Publications Ltd. All rights reserved. Company registered in England No 2765878. Registered Office: Michael Pearson, Valeant’s chairman and Pearson pointed out that the deals provided 54 Creynolds Lane, Solihull, West Midlands B90 4ER, UK.