J&J pledges to recapture luster of McNeil OTC brands
NEW BRUNSWICK, N.J. — Johnson & Johnson Tuesday morning pledged significant support behind the relaunch of several McNeil Consumer products into the marketplace in 2012, and feels confident impacted brands — Tylenol and Motrin, among others — will be able to recapture market share, despite significant private-label erosion.
"One bit of data that we saw — even though private label has taken a particular amount of share in that part of the market is that trust of the McNeil brands among moms is still two-times the levels of competing products," J&J VP finance and CFO Dominic Caruso said during an analyst conference call Tuesday morning. Caruso told analysts the McNeil product relaunches would be reintroduced with a combination of brand marketing, couponing and dosing innovations to recapture its one-time loyal consumers. "We hope that the loyalty that these brands [have enjoyed] over the years will stay with us," Caruso said. Caruso projected the overall marketing and merchandising initiatives will elicit a "surround-sound impact and get the consumers back to the loyal consumers they were prior to the recall."
U.S. sales of over-the-counter medicines were significantly impacted by the suspension of manufacturing at the McNeil Consumer Healthcare facility in Fort Washington, Pa., J&J reported. Sales of the company’s OTC/nutritionals products were down 24.2% to $332 million. Two beauty products — Neutrogena and Dabao skin care products — were positive contributors to operational results, however. Within skin care, J&J reported a 20.9% lift to $376 million.
For the third quarter ended September, Johnson & Johnson reported U.S. sales of $6.9 billion, down 3.7% vs. the corresponding year-ago period. Sales were down across its U.S. businesses — consumer was down 4.5% to $1.2 billion; pharmaceutical was down 6.1% to $2.9 billion; and medical devices/diagnostics was down 0.8% to $2.8 billion.
J&J reported U.S. and international combined sales of $16 billion, an increase of 6.8% over the year-ago period.
In September, McNeil-PPC completed the acquisition of full ownership of the Johnson & Johnson-Merck Consumer Pharmaceuticals in the United States. That business will be renamed McNeil Consumer Pharmaceuticals and will continue to market products under the Pepcid, Mylanta and Mylicon brands.
Par acquires three generics from Teva
WOODCLIFF LAKE, N.J. — Par Pharmaceutical Cos. has acquired the rights to three generic drugs from another company.
Par said it has acquired from Teva Pharmaceutical Industries the abbreviated new drug applications for fentanyl citrate lozenges and cyclobenzaprine ER capsules (generic versions of Actiq and Amrix, respectively), as well as the U.S. rights to market modafinil tablets, the generic version of Provigil. The acquired rights were in connection to Teva’s acquisition of drug maker Cephalon, which was completed Friday.
Par currently is shipping to the trade all strengths of fentanyl citrate lozenges that were previously available from Teva. Cyclobenzaprine ER capsules and modafinil tablets were not previously marketed by Teva and are not yet available, Par said.
Teva completes Cephalon acquisition
JERUSALEM — Teva Pharmaceutical Industries has completed its acquisition of another drug maker, following clearance from the Federal Trade Commission.
Teva said its acquisition of Frazier, Pa.-based Cephalon, valued at $6.8 billion, will help the company build out its branded and specialty pharmaceuticals business. The combined company is expected to generate about $20 billion in revenues (on a pro-forma basis) for the 12 months ended in June.
In relation to the deal, Teva sold three generic drugs to Par Pharmaceutical Cos.