HEALTH

Bayer boosts One-A-Day supplement portfolio with Schiff acquisition to the tune of $1.2 billion

BY Michael Johnsen

MORRISTOWN, N.J. — Bayer HealthCare on Tuesday signed a merger agreement to acquire Schiff Nutrition International, and with that, prominent supplement brands Digestive Advantage, MegaRed, Move Free and Airborne. These four products accounted for 70% of all Schiff sales, noted Marijn Dekkers, Bayer CEO, during an analyst call Wednesday morning. "This acquisition will strengthen Bayer’s leading OTC business and complement our existing nutritionals business with well-established strong brands," he said. 

"Schiff has been on our radar screen for a while, particularly because of the fact that they are active in the nutritional supplement part of the business where we would like to strengthen our portfolio in the United States," Dekker said. "We have a number of vitamin products like One-A-Day and Berocca and Flintstones for children. And Schiff is a nice opportunity to augment the nutritional supplement."

“We will utilize our extensive marketing, sales and distribution expertise to further develop the strong brands we are acquiring,” stated Jörg Reinhardt, CEO of Bayer HealthCare. “We will also look to leverage Schiff’s new technology platforms with innovation potential for other Bayer-owned brands and markets globally.” 

One example of complementary marketing opportunities identified by Dekkers included a "possible interplay between Aleve to relieve acute joint and muscle pain and Move Free to support joint health."

Schiff generated net sales of $259 million for its fiscal year ended May 31. On Sept. 18, Schiff announced that net sales for fiscal year 2013 were projected to grow between 43% and 46%. Expected sales growth included contributions from new products and brand building, as well as Airborne, which was acquired by Schiff on March 30. 

The transaction values Schiff at approximately $1.2 billion. Closing is subject to customary closing conditions and is expected by year-end 2012.

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Watson sells Rugby OTC business to Harvard Drug Group for $117 million

BY Michael Johnsen

PARSIPPANY, N.J. — Watson Pharmaceuticals on Wednesday announced the sale of its Rugby over-the-counter business to the Harvard Drug Group — a distributor and provider of private-label OTCs and generic prescription products under the Major Pharmaceuticals brand — for approximately $117 million.  

"I am confident that Major, with its leadership position as a marketer of OTC products, will be more strategically positioned to maximize the value of the long-known and respected Rugby name," stated Paul Bisaro, president and CEO of Watson.

The transaction received clearance from the U.S. Federal Trade Commission on Oct. 19.

The Rugby OTC portfolio includes more than 250 SKUs of cough-cold, allergy, pain relief, nausea relief, nicotine gum, vitamin and nutritional supplement products. Under terms of the agreement, Harvard Drug has acquired the Rugby trademark and all rights to market, sell and distribute OTC products and nicotine gum products sold under the trademark. Watson retains all rights to manufacture, sell and distribute all store-branded nicotine gum products, as well as other non-Rugby OTC products in its portfolio.  

Watson also retains ownership of its nicotine gum abbreviated new drug applications, as well as its nicotine gum manufacturing facilities. Consequently, as part of the transaction, Watson and Harvard have entered into a supply agreement under which Watson will manufacture and supply nicotine gum products sold in the Rugby and Major labels.

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Perfecta Products expands distribution of Zim’s Maximum Heat

BY Michael Johnsen

NORTH LIMA, Ohio — Perfecta Products on Wednesday announced expansion of its Zim’s Maximum Heat external analgesic.

Maximum Heat is indicated for the temporary relief of muscle, back, shoulder and neck pain. It is the sister product of Perfecta’s Zim’s Max-Freeze. Zim’s Maximum Heat is formulated with aloe, arnica, vitamin E and tea tree oil.

Both the 2.5-oz. Zim’s Maximum Heat Roll-On and 3.5-oz. tube of Zim’s Maximum Heat retail for a suggested $10.49.

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