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GSN ephedra insurance

This article was originally published in The Tan Sheet

Executive Summary

Garden State Nutritionals will continue to carry product liability coverage for its ephedra products, contrary to a report in 1"The Tan Sheet" Dec. 23, 2002, In Brief. Although it retains insurance, Health & Nutrition Systems still plans to cease marketing ephedra supplements due to "overwhelming negative press" on herbal ingredient...

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Health & Nutrition Systems

West Palm Beach, Fla.-based firm will discontinue sales of ephedra products because supplier Garden State Nutritionals lost product liability insurance, HNS says Dec. 19. GSN reported in September plans to phase in ephedra-free offerings, but said it still intended to sell the botanical (1"The Tan Sheet" Sept. 9, 2002, p. 4). HNS expects an 18% drop in quarterly sales due to the announcement, noting 19% of 2002 sales came from ephedra-based products, such as Thin Tabs, Fat Cutter Plus. Company retains $10 mil. of liability insurance. Plans to release clinically-tested-for-safety ephedra product with single-dose packaging have been shelved, but firm may launch "after dust settles" on the ingredient...

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