Whitehall Adding Nutritional To OTC/Vitamin Portfolio With AMBI's Cardia
This article was originally published in The Tan Sheet
Executive Summary
Whitehall-Robins plans to move its OTC drug/vitamin business into the functional nutritionals area with the acquisition of U.S. retail marketing rights to AMBI's Cardia salt alternative.
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Whitehall-Robins plans to move its OTC drug/vitamin business into the functional nutritionals area with the acquisition of U.S. retail marketing rights to AMBI's Cardia salt alternative. Under a Sept. 18-announced agreement with Tarrytown, N.Y.-based AMBI, Whitehall will obtain exclusive rights to market Cardia through its well-established food, drug and mass market channels, substantially broadening the product's limited retail availability in pharmacies and supermarkets. With 54% less sodium than table salt, Cardia is marketed for the dietary management of hypertension, representing a new category for Whitehall. The product contains 135 mg sodium, along with 90 mg potassium and 7 mg magnesium. Cardia was launched in early 1997 ("The Tan Sheet" Jan. 20, 1997, In Brief). The deal also provides Whitehall with a first negotiation option for exclusive rights to additional AMBI nutritional products that may be developed. Cardia is the only retail product sold by AMBI; the firm also operates an ingredients business, acquired with the purchase of Nutrition 21 ("The Tan Sheet" June 16, p. 28). In return for the marketing rights, Whitehall has agreed to an upfront payment of $1 mil. and a $4 mil. investment in newly-issued AMBI common stock. AMBI will retain rights to market its products through direct response and in ingredient channels. The deal is representative of Whitehall's continuing evolution from its traditional OTC/vitamin focus. It follows the completion in July of the company's acquisition of Solgar, which markets more than 400 vitamins, nutritional supplements and herbs through health food stores ("The Tan Sheet" June 22, p. 1). In the pending merger of American Home Products with Monsanto, Whitehall's business will be combined with Monsanto's nutrition (NutraSweet, Equal) and food ingredients operations under the direction of Searle chief Richard de Schutter ("The Tan Sheet" June 8, p. 3). Whitehall also plans to extend its Centrum vitamin brand into herbal supplements through a product development agreement with Irvine, Calif.-based PharmaPrint. The products will be introduced in the fourth quarter. |