OTC31-03-11p1&24FIN.qxd 31/3/11 07:09 Page 1 31 March 2011 COMPANY NEWS 3 Procter & Gamble teams Walgreens to acquire 3 drugstore.com Novartis UK plans 3 to move Consumer with Teva in OTC market OTC turnover disappoints 4 at Celesio Germany’s Bionorica 6 rocter & Gamble has signed a ‘master ledge, plus a network of mass-retail partners. pushes into the UK Pagreement’with Teva Pharmaceutical Yanai’s counterpart at Procter & Gamble, Galenica’s Vifor OTC unit 7 Industries to create a consumer healthcare Bob McDonald, pointed out that Teva’s exten- reports gains partnership, including a joint venture that sive portfolio in categories such as allergy,gas- NBTY reports loss 8 will bring together each firm’s OTC port- trointestinal and respiratory would provide a in wake of takeover folio. However, Procter & Gamble will re- pipeline of potential prescription-to-non-pre- Linola and Vagisan lift 9 tain full control of its North American OTC scription switches that could either become new sales at Dr Wolff operations. lines or extensions to Procter & Gamble brands Alliance Pharma poised 10 The joint venture – in which Procter & such as Metamucil, Pepto-Bismol and Vicks. to acquire Anbesol brand Gamble will hold 51% and Teva 49% – will Details of the collaboration are currently be- SEEK to auction 10 combine the two companies’ OTC operations ing finalised. Subject to regulatory approval, the cough-drug rights in all markets outside of North America and two firms expect to close the deal this autumn. will have annual sales of more than US$1 bil- The chief executive officer of the joint ven- GENERAL NEWS 11 lion (C700 million) on formation. ture will be Procter & Gamble’s Briain de Buit- Teva believes it could become a US$4 bil- leir. The joint venture’s chief financial officer Germany’s BfArM reveals 11 plan to compare triptans lion business within a few years. The Israeli will also be recruited from Procter & Gamble, firm will assume global manufacturing respon- but the chief operating officer role will be filled EFSA has plan to 11 be more like EMA sibility for both the joint venture and Procter by a Teva employee. & Gamble’s existing North American business. Expanding on the rationale behind the tie- MARKETING NEWS 13 Shlomo Yanai, Teva’s president and chief up, Yanai said the partnership enabled “two executive officer,insisted the partnership had global leaders” not only to combine their busi- Ratiopharm returns to 13 the “potential to reshape the entire global OTC nesses and research and development portfolios, twin-based advertising market”. Teva would bring the world’s largest but also a set of “complementary capabilities” Manx takes on Cyklo-F 14 portfolio of medicines as well as extensive ex- he believed were “unmatchable in the health- with Femstrual launch pertise in developing, registering and making care industry”. Omega claims Prevalin 15 those drugs in more than 60 markets, he said. Yanai noted the joint venture’s annual sales protects from hayfever Procter & Gamble,on the other hand, would of US$1 billion would include leading market Novartis takes Otriven 16 contribute brand-building and marketing know- ■ Continued on page 11 into the hayfever arena FEATURES 18 French market falters 18 Hornby quits as Alliance Boots’ chief despite ‘free-access’ A look at the 2010 market trends ndy Hornby has stepped down as group sion “in amicable mutual agreement” with the German firms foresee 20 Achief executive of Alliance Boots. firm’s supervisory board. He has been Cele- a price fall Hornby said that he had decided to “take sio’s chief executive officer for 12 years. Findings of a survey of consumers, a few months break” following an “intense last Alliance Boots recruited Hornby two years pharmacists and industry five years as chief executive officer of two maj- ago from UK banking group HBOS, where he REGULARS or companies”. had led the retail division before becoming The news comes soon after rival pan-Euro- chief executive officer. He had previously work- Events – Our regular listing 17 pean retailer and wholesaler Celesio announc- ed at the supermarket chain Asda (OTC bul- People – Celesio recruits Borchert 22 ed that its chairman and chief executive offi- letin, 19 June 2009, page 1). from Douglas retail chain cer,Fritz Oesterle, would retire earlier than The company said it would “undertake an People – Germany’s BAH names 23 expected on 30 June 2011 (OTC bulletin,17 internal and external search for a successor to new replacement for Seidscheck March 2011, page 19). lead the next phase of its international growth Celesio said Oesterle had reached the deci- and development”. OTC31-03-11p2-3FIN.qxd 30/3/11 12:20 Page 3 COMPANY NEWS OTC WaMergers & Acquisitionslgreens to acquire drugstore.com S drugstore giant Walgreens is set to ac- more than three million ‘savvy’, loyal online Uquire online retailer drugstore.com in a customers,”Wasson pointed out, “and will allow deal with a total enterprise value of approxi- us to move even closer to our existing custom- mately US$409 million (C322 million). ers through relationships with new vendors and Greg Wasson, Walgreen’s president and chief partners, adding approximately 60,000 products executive officer,said the deal “significantly” to our already strong online offering.” Drugstore.com was ranked the eighth-largest accelerated the firm’s online strategy. Moreover, With sales of more than US$456 million in “e-tailer” in the US by Internet Retailer magazine it complemented the activities of Walgreens’ 2010, drugstore.com was ranked as the eighth- 7,689-strong drugstore chain, and was another largest “e-tailer” in the US by Internet Retailer beauty and skincare websites and add the firm’s step towards the company’s goal of becoming magazine, Walgreens pointed out. “talented team” to Walgreen’s “strong and grow- the “most convenient multi-channel retailer of As a result of the deal, Walgreens will gain ing” e-commerce organisation. health and daily living needs in America”. the drugstore.com website, along with other Drugstore.com stockholders will get US$3.80 “This acquisition offers a unique opportunity websites operated by the firm including Beauty. per share from the deal. Subject to approval by that will provide us with immediate access to com, SkinStore.com and VisionDirect.com. drugstore.com’s stockholders and regulatory Walgreens said it would maintain separate authorities, the deal is expected to close by the branding of drugstore.com’s websites. end of June 2011. OTC bulletin Sona Chawla, Walgreen’s president of e- Meanwhile, Walgreens is set to sell its phar- commerce, said the deal enabled the company macy-benefit management business to Catalyst 31 March 2011 Number 359 to expand its product offering, acquire new cap- Health Solutions in a cash transaction worth abilities through drugstore.com’s well-known US$525 million, subject to certain adjustments. Editor & Publisher: Deborah Wilkes OTC Associate Editors: Aidan Fry Mike Rice Business Strategy Business Strategy/Annual Results Business Editor: Matt Stewart Assistant Editors: Jenna Lawrence Novartis UK plans Germany’s Hevert David Wallace Advertising Controller: Debi Minal to move Consumer looks towards east Marketing Manager: Val Davis ovartis is set to relocate some of its Con- erman homoeopathic specialist Hevert Editorial, Subscription and Advertising Nsumer Health operations in the UK, after G Arzneimittel intends to expand eastwards enquiries should be addressed to: OTC bulletin, OTC Publications Ltd, 54 Creynolds Lane, Solihull, drawing up proposals to reduce activities at as it aims to continue its recent growth trend. West Midlands B90 4ER, UK. its site in Horsham, West Sussex. “We have high hopes of entering Russia Tel: +44 1564 777550. Fax: +44 1564 777524. A spokesperson for Novartis told OTC bul- and selected Commonwealth of Independent E-mail: [email protected]. letin that the proposal envisaged moving the States (CIS) markets with two of our homoeo- Subscriptions Consumer Health operations carried out at Hor- pathic products,”stated the family-owned firm’s Annual subscriptions to OTC bulletin in Europe are £625.00 for single copies and £355.00 for additional copies to the same ad- sham to Frimley in Surrey, where the comp- managing director,Mathias Hevert. dress, including delivery. Subscriptions to addresses outside Eur- any’s Animal Health business and Sandoz gen- To cope with the expected increase in de- ope are subject to an additional charge of £30.00 to cover postage. Subscription enquiries in Korea should be directed to Pharma erics unit are already based. mand, Hevert will this year expand production Koreana Ltd, 14th Floor,KTB Network Building, 826-14 Yeoksam- About 80 Novartis Consumer Health staff capacity at its headquarters in Nussbaum, near dong, Kangnam-gu, Seoul 135-080, Korea (Tel: +82 2 554 9591; Fax: +82 2 563 8289; E-mail: [email protected]). currently work at Horsham, the spokesperson Frankfurt. “While other companies rely on con- Advertising noted, covering a variety of functions, the largest tract manufacturing, we are building strongly Advertising rates and data are available on request from the ad- of which were sales and marketing, research on our identity as a natural remedies producer,” dress above or at www.otc-bulletin.com. About OTC bulletin and development and global manufacturing commented Hevert. OTC bulletin is published 20 times a year by OTC Publications and supply. In its domestic market, the German com- Limited: twice monthly in February,March, April, May,June, Sep- tember,October and November; and monthly in December,Jan- The spokesperson would not comment on pany has just started a television campaign for uary,July and August. A subscription to OTC bulletin includes whether the proposed move would lead to any its homoeopathic anxiety remedy,Calmvalera the weekly electronic newsflash, news@OTCbulletin,which is published around 45 times a year.