Reckitt Benckiser Set to Acquire SSL for £2.54Bn
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OTC30-07-10p1.qxd 28/7/10 05:55 Page 1 30 July 2010 COMPANY NEWS 2 Reckitt Benckiser set to Novartis makes OTC gains 2 thanks to pain Sigma wants better offer from Aspen 3 J&J loses US$187mn 4 acquire SSL for £2.54bn off US OTC sales GSK’s Alli suffers European decline 6 eckitt Benckiser has agreed to buy SSL Reckitt Benckiser said it would assess the GlaxoSmithKline snaps up 7 Futura’s pain relief product RInternational for £2.54 billion (C3.03 “growth potential and strategic fit” of SSL’s billion) in a deal that will add the Durex and smaller brands. A spokesperson for Reckitt Swedish pharmacists to 8 open Boots pharmacies Scholl brands to its global health and per- Benckiser told OTC bulletin that it was too Celesio takes DocMorris to Italy 9 sonal care portfolio. early to say whether the company would make Bart Becht, chief executive officer of Reck- any divestments. Domestic growth lifts Omega 10 itt Benckiser,said the two brands would bring SSL’s OTC portfolio includes Earex ear GENERAL NEWS 12 the company’s total ‘Powerbrands’ to 19. drops, Full Marks head-lice treatments, Meltus He pointed out the deal would be a “step cough medicines, Mister Baby baby products, Heads of agencies consult 12 change” for Reckitt Benckiser’s global Health and Syndol and Cuprofen pain relievers. on their five-year strategy & Personal Care division. Health & Personal The deal – which has been agreed by the Member states decline to give 13 Care’s annual sales would increase by more boards of both companies – will see Reckitt okay to general health claims than a third to approximately £2.8 billion, he Benckiser pay £11.63 in cash per SSL share ASA has concerns about Diabetone 15 said, adding that the enlarged division would with a further entitlement to a dividend of £0.08 German associations slam 16 represent a third of the group’s total turnover. a share for the year ended 31 March 2010. The SPD’s homoeopathy plans Acquiring SSL would also boost the com- offer is a 32.8% premium on SSL’s closing share pany’s presence in China and Japan, he noted. ■ Continued on page 8 MARKETING NEWS 17 Reckitt intends to heat up 17 Europe’s sore-throat sales Pantoloc commercial uses 18 Private-equity firm Topical ketoprofen wonderful everyday events Perrigo gains rights to OTC Allegra 19 about to buy NBTY to reverse-switch European partners sought 22 for treatment for head lice rivate-equity firm The Carlyle Group is set opical ketoprofen medicines are set to be REGULARS Pto buy NBTY in a deal valuing the US-bas- Tgiven prescription-only status throughout ed manufacturer and retailer of nutritional sup- the European Union. Consumer viewpoint 14 plements at US$3.80 billion (C2.96 billion). The European Medicines Agency (EMA) – The menopause is this month’s topic The price is about 1.5-times NBTY’s turn- has recommended topical ketoprofen should Pharmacy viewpoint 20 over of US$2.58 billion for the year ended 30 only be used when prescribed by a physician, – Pharmacists notice Nurofen September 2009 (OTC bulletin,30 Novem- which means that the products will be reverse- and Wartner ber 2009, page 8). switched in most member states. Events – Our regular listing 23 Scott Rudolph, chairman and chief exec- Available throughout the European Union People – Latest moves 24 utive officer of NBTY,said Carlyle’s US$55.00 – excluding the Netherlands – since 1978, they People – Latest moves 26 ■ Continued on page 26 ■ Continued on page 12 OTC30-07-10p2-3FIN.qxd 28/7/10 05:57 Page 2 OTC COMPANY NEWS Second-Quarter Results Novartis makes OTC gains thanks to pain xcedrin in the US and Voltaren in Europe Region Second-quarter sales Change 2009/2010 (%) Ehelped lift Novartis Consumer Health’s (US$ millions) US$ Local currencies OTC sales in the second quarter of 2010. Voltaren had achieved a “record 44% share” Europe 629 +1 +5 of Germany’s topical analgesics market in June, US 499 +12 +12 the company said, and was currently ranked as Asia/Africa/Australasia 253 +13 +7 the second-largest brand in the overall Germ- Canada and Latin America128 +8 -1 an OTC market. Novartis Consumer Health* 1,509 +7 +7 Joseph Jimenez, Novartis’ chief executive officer,pointed out that German sales of the * Continuing operations diclofenac brand had grown by around 20%, or Figure 2: Breakdown of Novartis Consumer Health’s sales in the second quarter of 2010 (Source – Novartis) at about twice the market growth rate. In the US, the paracetamol-based Excedrin bulletin,14 May 2010, page 1). During the quarter,Novartis expanded its brand had made market-share gains as a result In June, McNeil warned that it did not ex- gastrointestinal franchise by launching Panto- of successful advertising and promotional cam- pect to have sources of supply for most of the loc Control in 11 European markets through a paigns for its Migraine variant, Novartis said, products made at the Fort Washington facility co-marketing agreement with the pantoprazole which had lifted the brand’s second-quarter before the end of 2010 (OTC bulletin,30 June product’s originator Nycomed (OTC bulletin, sales by 8%. This had been well ahead of the 2010, page 1). 10 February 2010, page 1). overall analgesics category,which had declined Novartis said its US sales had also been aid- Sales by Novartis Consumer Health increas- in the period. ed by the OTC proton-pump inhibitor brand Pre- ed by 7% to US$1.51 billion (C1.16 billion) dur- Meanwhile, Novartis said that IRI figures for vacid 24HR. Launched last November (OTC ing the period, as its CIBA Vision and Animal the four weeks ended 6 June showed that its bulletin,16 November 2009, page 1), the brand Health businesses added to growth by the firm’s Triaminic brand was now the leading OTC chil- is now claimed to be the fastest-growing fre- OTC unit (see Figure 1). dren’s cough and cold brand in the US. quent heartburn treatment in its category. Asia/Africa/Australasia was the best perform- The company boosted the brand further at Prevacid 24HR had achieved an average ing region for Consumer Health, with sales up the start of June by launching Triaminic Fever 25% share of the US proton-pump inhibitor by 13% – 7% in local currencies – to US$253 Reducer Pain Reliever, which Novartis claimed category over the opening six months of 2010, million (see Figure 2). was the “only branded OTC children’s liquid Novartis said, and was the number two brand- Solid growth – especially in France, Ger- acetaminophen product currently available nat- ed OTC heartburn treatment on the market. many and the UK – led to a 1% rise in Euro- ionwide in the US”. However, the lansoprazole-based brand’s pean turnover to US$629 million. In local-cur- Explaining the latest addition to the Tri- market share dipped in the second quarter after rencyterms, the growth was 5%. aminic brand, Novartis said that given the cur- reaching a high of around 30% in the first quar- In the US, Consumer Health had performed rent “lack of availability” of some OTC chil- ter (OTC bulletin,30 April 2010, page 8). This strongly, Novartis said, with sales growing by dren’s analgesic products, the company felt it followed the launch of Merck & Co’s Zegerid 12% to US$499 million. Canada and Latin Amer- was “important to now offer parents a depend- OTC brand, which combines 20mg of omepra- ica recorded growth of 8% to US$128 million, able liquid acetaminophen fever reducer and zole with 1,100mg sodium bicarbonate (OTC although sales in the region dropped by 1% in pain reliever product for their children”. bulletin,16 April 2010, page 14). local currencies. Novartis’ comments came after McNeil Con- Novartis noted that the US proton-pump in- Net sales in Consumer Health’s top six sumer Healthcare’s May recall of all lots of 44 hibitor category had grown by 39% so far in emerging markets grew by 26%. infant’s and children’s liquid products manu- 2010, as Zegerid OTC joined Prevacid 24HR Consumer Health’s operating income in- factured at its Fort Washington, Pennsylvania, and Procter & Gamble’s established omepra- creased by 8%, or by a tenth in local curren- plant, and marketed under its Tylenol, Mot- zole-based Prilosec OTC and its store-brand cies, to US$294 million. rin, Zyrtec and Benadryl brand names (OTC equivalents on the market. OTC Division Second-quarter sales Change 2009/2010 (%)Operating income Change Operating (US$ millions) US$ Local currencies (US$ millions) 2009/2010 (%) margin (%) Pharmaceuticals 7,670 +8 +8 2,337 +6 30.5 Sandoz 1,973 +11 +13 289 +17 14.6 Consumer Health* 1,509 +7 +7 294 +8 19.5 Vaccines and Diagnostics 564 +128 +135 -42 –– Corporate –––83– – Novartis 11,716 +11 +12 2,961 +25 25.3 * Continuing operations Figure 1: Breakdown of the financial performance of Novartis in the second quarter of 2010 (Source – Novartis) 2 OTC bulletin 30 July 2010 OTC30-07-10p2-3FIN.qxd 28/7/10 05:57 Page 3 COMPANY NEWS OTC Mergers & Acquisitions Divestments Sigma wants better offer Ransom sells from Aspen Pharmacare Optima Italia illiam Ransom & Son has agreed to igma Pharmaceuticals has told Aspen Phar- between the two companies “should not be in- W sell its loss-making Italian subsidiary Smacare to improve its takeover bid, after terpreted as a willingness” on the part of Sig- Optima Italia to Optima Naturals, a new com- the South African company reduced its offer ma’s board to recommend Aspen’s A$0.55 per pany formed by the current manager of its for the troubled Australian firm to A$1.43 bil- share offer,and advised its shareholders to take Italian operations.