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Kline: Personal care market ripe for acquisitions

BY Antoinette Alexander

PARSIPPANY, N.J. — The U.S. cosmetics and toiletries market posted 3.4% growth in 2012, with sales signifying success for both key and niche industry players, according to the recently published Cosmetics & Toiletries USA report by global consulting and research firm Kline & Co. However, it is at the macro level that the flourishing personal care market is offering the most promise.
 
Procter & Gamble maintains its lead in the U.S. personal care market; however, its market share across multiple categories is being challenged. With the exception of P&G, major companies — in particular, L’Oréal and Estée Lauder — are enjoying steady growth. Of particular note, smaller companies are making strong headway and highly viable impressions, according to Kline.
 
Smaller companies are increasingly attractive acquisition prospects by larger, cashed-up, and savvy players. For example, earlier this year, L’Oréal’s CEO Jean-Paul Agon announced that he was ready to make acquisitions to maintain growth, and this has already been borne out by the recent acquisition of Interconsumer Products, one of Kenya’s largest manufacturers of personal care and beauty products.
 
“Clearly, companies continue to emphasize growth agendas and make significant funding available — both strategic and financial sponsors — to realize such aspirations. Such an improving environment is increasingly attractive for M&A and a growing number of smaller, often privately-held cosmetic and toiletry companies are contemplating, developing and/or executing exits. As such, 2013 portends to offer even greater deal flow as many companies look to invest in new growth opportunities,” stated Eric Vogelsberg, SVP at Kline’s M&A Advisory.
 

In terms of the overall cosmetics and toiletries market performance, the nail polishes category claims the most success, shining with 17.4% growth, fueled by continual innovation and high consumer demand, Kline stated. In addition, skin care products for men showed a strong performance in 2012, gaining traction with brands such as Lab Series Skincare for Men by Estée Lauder and Anthony Logistics for Men by Anthony Brands, which posted double-digit growth.

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P&G posts Q3 results up 2%

BY Antoinette Alexander

CINCINNATI — Procter & Gamble has announced that third-quarter sales rose 2% as net earnings per share rose 7%.

“We delivered another quarter of steady progress,” stated chairman, president and CEO, Bob McDonald. “Top-line growth was in line with our expectations. Market shares improved broadly. Strong cost savings enabled us to exceed our outlook on the bottom line. We increased our dividend earlier this month, and we are now projecting to repurchase $6 billion in stock, which is at the high end of our estimated range. We expect further top-line improvement in the fourth quarter, driven by innovation and portfolio expansion, enabled by continued productivity improvement.”

Net sales increased 2% to $20.6 billion in the January-to-March quarter, including unfavorable foreign exchange of 1%. Organic sales grew 3%.
 
Diluted net earnings per share were 88 cents, an increase of 7% versus the prior year period. Excluding noncore charges of 11 cents per share in the current year, core earnings per share were 99 cents, an increase of 5% versus the prior year period.

Net sales decreased 2% in hair care and skin care in a period of heavy competitive product and promotional activity. Meanwhile, blades and razors net sales increased versus the prior year driven primarily by innovation in the United States and pricing and product mix improvement in developing regions, P&G stated. Oral Care net sales also grew in developed and developing markets due to innovation and portfolio expansion.

 

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Hospira looks to U.S. as it marks European biosimilar milestone

BY Alaric DeArment

CHICAGO — Generic drug maker Hospira marked its fifth year marketing knock-off versions of biotech drugs in Europe Wednesday as it presented at the 2013 Biotechnology Industry Organization International Convention this week.

The drug maker said it delivered more than 5 million doses of biosimilar medicines to patients in Europe and Australia. The convention includes multiple sessions devoted to such topics as biosimilar regulatory approval, manufacturing and market formation, the company said.

"Bringing biosimilars to the United States is the next major step toward reducing costs for the U.S. healthcare system," Hospira president Thomas Moore said. "As the first U.S. company to market biosimilars globally, Hospira will build on our track record of success to introduce biosimilars in the United States and increase access for Americans to high-quality, biologic medications that treat severe and life-threatening diseases."

The company said its products entered the European and Australian markets after "robust" regulatory approval processes and that they had been subject to extensive post-marketing studies to test their effectiveness and safety. By contrast, the Patient Protection and Affordable Care Act of 2010 contained provisions for an abbreviated biosimilar approval pathway in the United States, similar to the one for generic pharmaceutical drugs, but the Food and Drug Administration has yet to finalize and implement regulations.

Nevertheless, biotechnology companies in particular point out the fundamental difference between biosimilars and generic pharmaceuticals. Generic pharmaceuticals are made under the same process as their brand-name counterparts, but biotech drugs are made by manipulating the DNA of cells so that they churn out medicinal compounds. The sticking point is that because the cell line used by the maker of a brand-name biotech drug and that used by a biosimilar manufacturer would be different, there is the possibility that the original product and the biosimilar could differ in terms of safety and efficacy. As such, the regulatory pathway for biosimilars will require some clinical trials before the FDA can approve them, a process not required for generic pharmaceuticals.

At the same time, many states have sought to pass laws that would allow physicians to bar pharmacists from supplying biosimilars. Gov. Bob McDonnell of Virginia recently signed such a bill into law, and Florida’s state legislature has advanced a similar law, but the laws contain sunset provisions, meaning they would likely expire before any biosimilars came to market.

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C.WIBLE says:
Aug-01-2013 06:36 am

5 million doses sounds to be quite large in amount for Europe and Australia, as per australian law is it allow to use so many medicines doses to patients.

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