Bird Flu Creates “Opportunity” For AirShield In Immune Category, Leiner Says
This article was originally published in The Tan Sheet
Executive Summary
The avian flu scare has created an "opportunity" for Leiner's immune system supplement AirShield, the firm said during a second-quarter 2006 earnings call
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The avian flu scare has created an "opportunity" for Leiner's immune system supplement AirShield , the firm said during a second-quarter 2006 earnings call. "One of the new opportunity buzzes we are receiving in the business is the avian flu, or the bird flu, issue," Leiner CEO Bob Kaminski said Nov. 3. The company recently launched its effervescent "immune boosting formula" AirShield as part of a move into the immune category, Kaminski said. Launched in the last few months, AirShield is similar to Knight-McDowell Labs' AirBorne dietary supplement. "Our initial results of AirShield at CVS have been fantastic," Kaminski said. "We have several of our Big Three customers now looking at AirShield in trying to move into the whole immune/personal protection category." The firm expects to have more resources to spend on new product development in the coming fiscal year since completing its September acquisition of Pharmaceutical Formulations, Inc. (PFI) (1 'The Tan Sheet' Oct. 3, 2005, In Brief). The firm is currently eying glucosamine and chondroitin research for opportunities to boost sales in the joint care division. Leiner reviewed initial abstracts from the NIH's Glucosamine/Chondroitin Arthritis Intervention Trial (GAIT) study and found the data "encouraging." "The fact that this is a five-year NIH initiative is significant," Kaminski noted. The full study will be released in December. Net sales for the quarter increased 2.4% to $168.9 mil, according to CEO Rob Reynolds. In the VMS (vitamins, minerals and supplements) category, sales were up 8.1% to $8.2 mil. Meanwhile, OTC sales dropped 9.2% to $47.1 mil, which Leiner attributed to a price decrease in the loratadine product line. The firm upgraded its projected sales for the year from $200 mil. during Q1 2006 to $250 mil. (2 (Also see "Leiner Looks For Ibuprofen Growth Following “Negative Mix Impact”" - Pink Sheet, 15 Aug, 2005.), p. 7). - Melina Vissat |