Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

STERLING HEALTH OTC BUSINESS IN EUROPE COMBINES SANOFI AND STERLING OPERATIONS INTO "LARGEST" CONSUMER HEALTH PRODUCTS BUSINESS ON CONTINENT

Executive Summary

The proposed strategic alliance of Sterling Drug and Sanofi will merge the two companies' OTC businesses in Europe on a country-by-country basis under Sterling oversight. The combination, called Sterling Health, will create the "largest OTC health products organization in Europe," the companies said Jan. 9. Sanofi OTC products have current European sales of approximately 1 bil. francs, the company says, or roughly $ 500 mil. In 1989, Sanofi reported that sales of its OTCs in Europe totaled 785 mil. francs. The company's OTCs lead the French market with a 7.1% share, are second in Italy with a 5% share, and are "significant" presences in Belgium, the Netherlands, the U.K., and Spain. Sanofi entered the U.K. OTC market in 1989 with the acquisition of International Laboratories, Ltd., and moved into Spain that same year as a majority owner in a joint venture with Prodesfarma. Sanofi markets a number of OTC and consumer healthcare products in Europe. Brandnames include Midy Vitamin C products; Marie Rose shampoo; Algipan analgesic balm; the analgesic Metaspirine; Collyrex, Pullmoll, Cequinyl cough/cold medicines; and Ideolaxyl laxative. Sterling's Lehn & Fink H&BA and household products business (Tussy, Ogilvie; Lysol, etc.) would not be included in the proposed strategic alliance with Sanofi, and, instead, would remain within Kodak. Under the joint venture agreement, announced by the companies in New York City Jan. 9, Sterling would retain all rights to its existing non-European OTC business. In the U.S., Bayer and its line extensions account for more than 36% of Sterling's total sales, the company said. In addition, Sterling markets such well known brands as the Panadol and Midol analgesics, the nearly 120-year-old Phillips' Milk of Magnesia laxative brand, Stri-Dex acne pads, Campho-Phenique, Neo- Synephrine and NaSal nasal sprays and Dairy Ease enzyme tablets. Approximately 55% of Sterling OTC sales are generated outside the U.S. Worldwide, more than half of its OTC sales derive from its analgesic brands, with laxatives and gastrointestinal products generating the second largest revenue share from OTCs, Sterling said. Pain relievers marketed outside the U.S. include the U.K.'s "number one" effervescent analgesic, according to Sterling, as well as the major "market leaders" Sonrisal in Brazil and Mejoral in most of Latin America, and the market leading ibuprofen Actiprofen in Canada. Other Sterling International OTC brands include Cafenol analgesic, Dietoman diet aids, Andrews Liver Salts and Valda cough/cold products.
Advertisement
Advertisement
UsernamePublicRestriction

Register

PS018642

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel