GSK expects to divest noncore OTC brands by late 2011, company says
PHILADELPHIA — GlaxoSmithKline expects to close the deal on the divestiture of several over-the-counter brands that were identified in April, the company stated Tuesday as part of its second-quarter earnings results.
"The divestment of noncore OTC assets in the [United States] and Europe will further aid our strategy to accelerate growth and increase the focus of our Consumer Healthcare business," GSK stated. "We are making progress to divest these products by late 2011, subject to realizing appropriate value for shareholders."
The update drove speculation as to who is in the running for GSK’s second-tier brands, which includes, in the U.S. market, analgesic powders BC and Goody’s, and the only OTC weight-loss product, Alli. According to a Reuters report published Thursday morning, private equity firms Advent, Cinven and Warburg Pincus are among the most likely bidders. Rival consumer healthcare divisions are not necessarily in the running, Reuters reported. Advent is considered the front-runner because it counts former GSK CEO Jean-Pierre Garnier among its group of operating partners. Nonbinding bids are due Aug. 8.
The total divestiture, which includes several European OTC brands, is expected to generate less than $2.1 billion, according to the report, given the uncertainty surrounding Alli — sales in the trendy weight-loss category continue to decline. For the 52 weeks ended April 17, (Alli was identified as a divestiture candidate April 14), Alli sales totaled $60.3 million across food, drug and mass (excluding Walmart), representing a decline of 35.4%.
The full report is available here.
FDA’s Fabricant to deliver keynote address at CRN conference this fall
WASHINGTON — The Council for Responsible Nutrition on Wednesday announced that Daniel Fabricant, director of the Division of Dietary Supplement Programs at the Food and Drug Administration, will deliver the keynote address at The Conference: CRN’s Annual Symposium for the Dietary Supplement Industry on Oct. 20 in Rancho Palos Verdes, Calif.
Fabricant, who recently joined the FDA following stints at the Natural Products Association and ConsumerLab.com, will address the agency’s priorities for the dietary supplement industry, including the FDA’s perspective on the newly released and controversial draft guidance for New Dietary Ingredients.
At the agency, Fabricant is responsible for the full implementation of DSHEA through the interpretation and enforcement of dietary supplement requirements that ensure the safety and truthful labeling of dietary supplements support legislative compliance, enforcement and public affairs initiatives.
“The dietary supplement and nutrition products industries are facing new and serious challenges, as evidenced by publication of [the] FDA’s draft NDI guidance and the recent introduction of S. 1310 by Senator Richard Durbin,” stated John Venardos, chairman of the conference and SVP worldwide regulatory, government and industry affairs for Herbalife. “We are appreciative that Dr. Fabricant will engage with our participants at this industry-wide conference, and his insights will set the stage for a lively, provocative and informative meeting.”
Online registration is available through CRN’s website.
Perrigo closes acquisition of Paddock Labs
ALLEGAN, Mich. — Generic drug maker Perrigo has closed its purchase of Paddock Labs, the company said Tuesday.
Perrigo acquired privately owned Paddock, a manufacturer of generic prescription and over-the-counter drugs based in Minneapolis, for $540 million.
“We are very pleased to welcome the Paddock team to the Perrigo family,” Perrigo chairman and CEO Joseph Papa said. “This acquisition is another important step forward in executing Perrigo’s strategy to expand our specialty portfolio of generic Rx products.”
As part of the purchase, the Federal Trade Commission is requiring Perrigo to divest a small handful of Paddock’s drugs, which it will sell to Watson Pharmaceuticals. The drugs include promethazine hydrochloride suppositories, ciclopirox shampoo and two ammonium lactate medications.