HEALTH

J&J posts increased sales for 2Q

BY Drew Buono

LANGHORNE, Pa. Johnson & Johnson released its second-quarter results today and sales increased by 8.7 percent to $16.5 billion, according to published reports.

The company earned $3.3 billion compared to $3.08 billion in the same quarter last year. Global sales of prescription drugs and sales of medical devices rose as well. Prescription drug sales rose by 3.1 percent to $6.3 billion, while medical device sales rose 12.1 percent to $6.1 billion.

The company also raised its 2008 earnings forecast, excluding special items, to between $4.45 and $4.50 per share, from its earlier view of $4.40 to $4.45 per share.

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Retailers benefit greatly from store brand sales

BY Michael Johnsen

BOSTON A declining economy that’s driving the consumer toward more value-minded purchases may be good for drug retail, especially as pharmacy operators are picking up more and more of the fill-in purchases toward the end of the month.

As much as 70 percent of a retailer’s profitability is derived from store branded analgesic offerings, noted Joe Papa, Perrigo chief executive officer, during a presentation before analysts at the Oppenheimer Consumer Growth Conference held here last week.

“Of the analgesic sales, approximately 25 percent of the sales dollars come from store brand, approximately 35 percent of the units are attributed to store brand, but almost 70 percent of the retailer’s profitability in the category of analgesics is driven by store brand,” Papa said. “It really shows you the importance of store brand to the retailer.”

The margin contribution is even more pronounced in nicotine replacement therapy, Papa said, where store brand offerings represent approximately 50 percent of dollar sales; 60 percent of unit sales; and more than 80 percent of margin contribution.

Store brand offerings are also quickly gaining market share against McNeil Consumer Healthcare’s allergy remedy Zyrtec, launched in January. “Store brand today already accounts for between 35 [percent] and 40 percent of the [Zyrtec] volume share,” Papa said. “So the product is getting off to a great start both from the branded side but also from the store brand side.”

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CHPA updates look of Five Moms Web site

BY Michael Johnsen

WASHINGTON The Consumer Healthcare Products Association on Friday announced a makeover for its Five Moms: Stopping Cough Medicine Abuse Campaign web site at www.FiveMoms.com.

The site now features five main sections, all geared to providing parents with important information to keep their children and communities free of cough medicine abuse.

The sections are:

• Learn, which houses educational resources and news about cough medicine abuse.• Act, which directs visitors to tools to work against cough medicine abuse.• Talk, which offers practical tips for talking with children about healthy lifestyles and the dangers of abuse.• Protect, which spells out steps parents can take to keep kids from abusing medicines.• En espanol, which provides Spanish-language content.

While the site now boasts expanded content, it still offers direct access to some of the most popular features from Five Moms: the viral video to help raise awareness, downloadables to bring to gatherings and parent events, and easy access to the Five Moms interactive community on Gather.

Since CHPA’s Five Moms campaign launched in May 2007, it has reached more than 23 million parents and has 72,000 registered members. To date, CHPA’s effort has won the W3 silver award for best family/parenting web site and the “Making a Difference” Internet Safety Award. In addition, Five Moms was a finalist for PRWeek’s “Healthcare Campaign of the Year” in 2008, and earned two silver awards by the International Academy of the Visual Arts in the pharmaceuticals and viral marketing categories. Most recently, the campaign was named as a finalist in the National Capital Chapter of the Public Relations Society of America’s Thoth Award for social media.

CHPA has asked all member companies to post the Five Moms icon or badge on company intranets to help ensure the entire CHPA community is aware of the industry-supported resources available to stop cough medicine abuse.

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