HEALTH

Perrigo buys international OTC portfolio from GSK

BY Michael Johnsen

DUBLIN — Perrigo on Tuesday acquired a portfolio of OTC brands from GlaxoSmithKline Consumer Healthcare, in connection with GSK's commitments to the European Commission and other regulators to divest these businesses because of its consumer health joint venture with Novartis. 
 
Terms of the all-cash transaction were not disclosed.
 
Included in the deal are GSK's NiQuitin nicotine replacement therapy business, primarily in the European Economic Area and Brazil, and Novartis's legacy Australian NRT business, including the Nicotinell brand; several assorted OTC brands including Coldrex (cold and flu treatment) across the EEA, and Panodil (pain relief), Nezeril (nasal decongestant) and Nasin (nasal decongestant) in Sweden; and Novartis' legacy cold sore management products primarily in the EEA, marketed under the brand names Vectavir, Pencivir, Fenivir, Fenlips and Vectatone.
 
"This acquisition demonstrates Perrigo's ability to execute on our 'Base Plus Plus Plus' strategy, in which we make selective, accretive transactions to expand our durable base business," stated Joseph Papa, Perrigo president and CEO. "We are building on the global platform we established with the Omega Pharma acquisition to capture an even greater share of the $30 billion European OTC market opportunity with several well-established, complementary brands that bolster our OTC product portfolio. We are committed to making investments in these brands to grow their market positions in key geographies, by following Omega Pharma's proven approach to brand building."
 
"Perrigo is uniquely positioned to maximize the potential of these brands by leveraging Omega Pharma's leading European commercial infrastructure, pan-European distribution network, strong brand-building capabilities and exceptional management team. This announcement comes on the heels of our recent acquisition of European OTC dermatological product, Vitasil, which recently closed. With our global platform in place and our robust balance sheet, we are ideally positioned to execute immediately accretive deals, such as this one, that will have a multiplier effect on our growth."  
 
The transaction has been unanimously approved by the boards of directors of Perrigo and GSK, and is expected to close in the third quarter of 2015, pending approval by the European Commission, the Australian Competition and Consumer Commission, and Brazil's Council for Economic Defense, as well as the satisfaction of customary closing conditions.
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AmerisourceBergen strengthens distribution network, IT capabilities with new distribution centers

BY Michael Johnsen

VALLEY FORGE, Pa. — AmerisourceBergen has announced plans to build three new distribution centers in Olive Branch, Miss., Shakopee, Minn. and Newburgh, N.Y. as part of an overall plan to continuously improve the wholesaler’s pharmaceutical supply chain delivery ability. 
 
“We want to continue to get better at providing that customer experience every single day,” Bob Mauch, EVP and president AmerisourceBergen Drug, told Drug Store News. "One of the things that we’re really focused on here … is a patient-minded supply chain. We’re making these investments that make us even better at delivering that product every day on time to the right place.”
 
AmerisourceBergen is currently in the design stages of the three DCs, and Mauch said that by the time they’re completed, they will feature state-of-the-art automation and warehouse management systems. The new DCs will also feature advanced communication technologies.
 
“We’re investing in technology to be in even better contact with our customers in terms of deliveries and delivery times,” he said. 
 
AmerisourceBergen has committed more than $1 billion over the last ten years into the distribution network and IT systems that handles nearly 35% of all of the pharmaceuticals sold and distributed throughout the country. 
 
“We grow when our customers grow, so it’s no surprise that our goal is to help successfully execute the patient-focused strategies of the manufacturers, providers, pharmacists and retailers who we support,” Mauch said. “Enhancements to our distribution network combined with AmerisourceBergen’s unsurpassed knowledge and reach positions us to increase efficiency and drive innovation in pharmaceutical distribution and the delivery of healthcare.” 
 
Construction on the new facilities is expected to start in the summer of 2015 and will take from 18-24 months to complete.
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Report: Mondelez made solid progress with Call for Well-being goals in 2014

BY David Salazar

DEERFIELD, Ill. — Mondelez International made solid progress in 2014 toward meeting its Call For Well-being goals, according to a report released Monday. The goals — which it adopted in 2013 — focus on sustainability, mindful snacking, safety and community. Mondelez met or is on target for most goals in those areas, and exceeded expectations in its efforts to cut waste. 
 
“We’ve made important progress against key metrics to reduce our environmental footprint, evolve the nutrition profile of our portfolio and secure sustainable agriculture supplies,” Mondelez CEO and chairman Irene Rosenfeld said. “Working together with employees, partners and suppliers, we can deliver enduring solutions for our business and society.” 
 
In terms of sustainability, the company achieved its goal of reducing manufacturing waste by 15%, actually exceeding the goal for 2015 by four times the amount, cutting waste by 57% per ton of product. It also reduced its greenhouse gas emissions by 16%, exceeding its goal of 15% by 2015. Mondelez acknowledged that it was behind in its sustainability goals of reducing energy use by 15% by 2015, only cutting it by 7% in 2014. It is near its goal of reducing water use in manufacturing by 15%, having reduced it by 10% last year. 
 
When it comes to mindful snacking, the company is on track with most of its goals, from reducing the amount of sodium, in its snacks by 10% by 2020. It has increased whole grains by 23% across its global snack portfolio, almost reaching its 2020 goal of increasing whole grains by 25%. It has also implemented front-of-package calorie labeling on about 46% of its portfolio and is on target to cover 100% by 2016. Mondelez said it has fallen slightly short of its targeted 10% saturated fat reduction across its snack portfolio by 2020, only cutting about 1%. The company said that it has seen about a 40% reduction in saturated fats in certain Oreo varieties.
 
Mondelez is also on target to reach its safety goals, with 90% of its manufacturing sites currently certified by the Foundation for Food Safety Certification and a 24% reduction in total incident rate. It has also allocated 64% of a pledged $55 million into community partnerships promoting healthy lifestyles.
 
“We firmly believe that we can grow our business, while improving the well-being of the planet,” Rosenfeld said. “Through our Call for Well-being, we bring a business mindset and the power of our global resources together to drive change.”
 
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