In Brief

Novartis narrows consumer decline in Q4; Abbott sanguine on China market; FDA warns Food for Health International; Suspect studies taint Bio-Strath claims, NAD says; NACDS debuts Total Store Expo; more news In Brief.

Novartis narrows consumer decline

Net sales by Novartis Consumer Health Inc.dropped 19.3% in 2012 to $3.74 billion, though the decline was less severe in the fourth quarter, when sales were down 10.9% year-over-year to $961 million. Basel, Switzerland-based Novartis AG spent virtually all of 2012 striving to restore recalled OTCs including Excedrin and Lamisil to market after its Lincoln, Neb., manufacturing plant went offline for quality control remediation (Also see "In Brief" - Pink Sheet, 14 Jan, 2013.). In the firm’s Jan. 23 earnings call, executives said the loss of output from Lincoln, the impact of generic competition in pharma and higher quality costs in the Sandoz International GMBHbusiness led to overall flat sales and net income down a reported 5% to $12.81 billion in 2012. Novartis expects Lincoln to restart production of some OTCs in the first half of 2013, and projects consumer health sales to rebound with high single-digit growth in the full year.

Separately, Novartis said Jan. 23 that Chairman Daniel Vasella will step down. Current Bayer HealthCare AG Board of Management Chairman Jörg Reinhardt has been nominated to succeed Vasella in August (see People In Brief, p. 16).

Abbott sanguine on China market

Abbott Laboratories Inc. CEO Miles White says [Abbott Nutrition] and the firm’s other businesses are accelerating expansion in China, despite the slowing economy there. Abbott Jan. 23 reported fourth-quarter nutritionals sales up 10.2% to $1.72 billion, with international pediatric nutrition sales 15% higher at $581 million. In contrast, competitor Mead Johnson Nutrition Co. stumbled in China in 2012 (Also see "In Brief" - Pink Sheet, 17 Sep, 2012.). For the full year, Abbott Nutrition recorded sales of $6.47 billion, with the U.S. up 9.5% and international growth reported at 6.3%. The strong U.S. performance “may moderate a little bit” in 2013 as the domestic infant formula market flattens out, said Head of Investor Relations Brian Yoor. But adult product launches, including Ensure Complete shakes, buttress the U.S. business. The Abbott Park, Ill., health care firm reported overall fourth-quarter net sales of $10.84 billion, a 4.4% increase, with net earnings off 34.9% to $1.05 billion partly due to a loss on extinguishment of debt and costs related to spinning off AbbVie Inc.

FDA warns Food for Health International

FDA warns Food for Health International LLC about good manufacturing practice violations, adulterated supplements and marketing statements that make products unapproved drugs. FDA inspected the Provo, Utah, firm in April 2012 and found it promoting Activz Control for hypertension, cholesterol and hypoglycemia, causing it to be an unapproved new drug. FDA also noted GMP violations including missing component specifications and only one identity test on raw materials and microbial and heavy metal testing for finished products. FHI failed to prepare a master manufacturing record, and quality control operations for product complaints did not include how to address complaints.

Suspect studies taint Bio-Strath claims – NAD

Nature’s Answer LLC should scrub its website of most claims for Bio-Strath Whole Food Supplements, according to the National Advertising Division, which found the supplement firm citing poorly designed studies as scientific support. NAD’s case report was published Jan. 22 and spurred by a Council for Responsible Nutrition challenge, which took issue with Bio-Strath’s claims of increasing concentration in school-aged children, improving memory and immune health in adults and aiding convalescence after surgery or illness. Among the evidence that did not reach the level of being competent and reliable was a study of Bio-Strath’s effects on cold/flu resistance, which “suffered from several significant methodological flaws” because it was neither randomized nor blind and lacked a statistical plan, NAD said. Hauppauge, N.Y.-based Nature’s Answer agreed in total with the recommendations.

NACDS debuts Total Store Expo

The National Association of Chain Drug Stores hosts Total Store Expo Aug. 10-13 in Las Vegas at the Sands Expo and Convention Center, unifying three of its previous conferences. Total Store Expo will combine NACDS’ Supply Chain & Logistics Conference, Marketplace Conference and Pharmacy & Technology Conference to “enable strategic, cross-departmental meetings across the industry at this groundbreaking four-day event,” says Jim Whitman, senior VP, member programs and services. "The evolutionary new NACDS Total Store Expo will bring together drug, food, mass, club and value segments together into one trade show complete with high-caliber educational programming and top-notch business opportunities,” Whitman adds. Total Store Expo will feature an exhibit hall, product showcase and “Meet the Market” and “Meet the Retailer” sessions. Information and registration forms are available at tse.nacds.org.

BASF acquires Pronova

BASF SE’s proposal to pay $905.6 million (4.996 billion Norwegian kroner) for Pronova BioPharma ASA is accepted by 97% of Pronova shareholders, the Ludwigshafen, Germany-based firm said Jan. 21. This was the second proposal and was 7% higher than BASF’s offer in November for the omega-3 pharmaceutical and supplement developer. According to media reports, the higher price marked an attempt to win over Norwegian fund Odin Forvaltning, owner of 4.7% of Pronova. BASF expects to finalize the offer Feb. 4.