In Brief

Apsen pays Nestle $215M for infant formula market licenses; UAS Labs acquired in private equity deal; health groups urge Sebelius to follow OTC Plan B order; Abbott continues emerging markets push; more news In Brief.

Apsen pays Nestle $215M for formula market licenses

South African generics firm Aspen Pharmacare Holdings Ltd. agrees to pay $215 million to Nestle SA for licenses to sell infant nutrition brands including S26 Gold, S26 and SMA insouthern Africa and Australia.The transaction goes into effect April 28 in Australia, but licenses for South Africa and Namibia are pending. In a statement April 18, Aspen said it will have the exclusive right of use of Nestle’s S26 and SMA product trademarks in the markets for 20 years. The agreement includes a transfer of ownership in the operating businesses from Nestle to Aspen, including employees. Nestle acquired the brands in April 2012 as part of its $11.85 billion acquisition of Pfizer Inc.’s entire international formula business, which also operates in China, India and other markets (Also see "Nestle Pays Nearly $12 Bil. For Desirable Pfizer Nutrition Portfolio" - Pink Sheet, 30 Apr, 2012.).

UAS Labs acquired in private equity deal

Lakeview Equity Partners LLC picks up probiotic supplement firm UAS Laboratories Inc. for an undisclosed amount, promising to boost UAS’ research and development and consumer marketing. In an April 11 release, Milwaukee-based Lakeview said it named Kevin Mehring president of UAS and Greg Leyer chief scientific officer; both previously worked at ingredients firm Danisco, now part of DuPont Nutrition & Health. S.K. Dash founded UAS in 1979 and will stay on as chairman and director of business development. Lakeview focuses on “traditional, Midwest-based, middle market companies,” and UAS appears to mark its first foray into the nutritional products industry. Lakeview Managing Director Joe Cesarz praised the Eden Prairie, Minn., firm’s “30-year history of innovation and quality” and its potential “to capitalize on the rapidly expanding probiotic supplements market both domestically and internationally.” UAS has had some run-ins with FDA, however, including a product seizure in 2011 after the agency found violative health claims online (Also see "Probiotics, Juice Disease Claims Elicit Product Seizure Response From FDA" - Pink Sheet, 13 Jun, 2011.).

Groups urge Sebelius to follow Plan B order

Secretary of Health and Human Services Kathleen Sebelius gets a push from health advocacy organizations to let the recent ruling on OTC emergency contraception stand. In an April 11 letter, 10 groups urge Sebelius to end point-of-sale restrictions for Plan B One-Step (levonorgestrel 1.5 mg) and generic equivalents, “and make this safe product available on store shelves as soon as possible.” The letter signatories point out the proven safety and public health utility of emergency contraceptives, as the federal judge did in his April 4 decision ordering FDA to approve the drugs for universal OTC sale (Also see "Court Ruling Compels Emergency Contraceptives Over The Counter" - Pink Sheet, 8 Apr, 2013.). Groups signing the letter include the American Academy of Pediatrics, National Women’s Health Network and Reproductive Health Technologies Project. The administration has not said whether it plans to file for a stay or appeal the case.

Abbott continues emerging markets push

CEO Miles White says Abbott Laboratories Inc. remains positioned to take advantage of growth in emerging markets, where White said the company generated 45% of its $1.70 billion in total nutrition sales during the first quarter. The Abbott Park, Ill.-based firm expects to double [Abbott Nutrition]’s presence in China by 2015, and will open new nutritional manufacturing facilities in China and India by early 2014 (Also see "In Brief" - Pink Sheet, 28 Jan, 2013.). Abbott April 17 reported nutrition sales up 8.7% in the January-March quarter. Executives during a same-day call said U.S. nutrition growth of 2.1% to $718 million was in line with expectations, with strong sales of PediaSure and Ensure products partially offset by lower category growth and lower volume through the Women, Infants and Children government program. Nutrition is projected to grow high single digits operationally in the second quarter, with the division’s operating margin expected to improve 3 percentage points in the full year. Abbott reported overall net sales of $5.39 billion in the quarter, a 1.8% increase, with net earnings from continuing operations up 19.9% to $554 million.

Arcadia Biosciences, DuPont partner

Arcadia Biosciences Inc. and DuPont April 9 announced a partnership to develop a specialty nutritional oil for the consumer market. Davis, Calif.-based Arcadia said it will receive licenses to DuPont intellectual properties to develop new safflower varieties that will produce arachidonic acid-containing oil in a concentrated, reliable and cost-effective way. Arachidonic acid has been studied for its benefits on muscle growth and neurological development, and is common in bodybuilding supplements. Des Moines, Iowa-based DuPont already produces Plenish high oleic soybean oil with 20% less saturated fat than commodity soy oil.

Drink Chia expands into Whole Foods, Wegmans

Drink Chia LLC, maker of omega-3 superfood drinks, signs distribution deals with United Natural Foods Inc. and KeHE Food Distributors, food distributors in the natural market and supermarket channels. Altamonte Springs, Fla.-based Drink Chia said the agreements will expand its brand footprint throughout Florida, the Northeast and the Midwest. New retail outlets will include 18 Florida Whole Foods Markets and all 81 Wegmans Food Markets in Maryland, Massachusetts, New Jersey, New York, Pennsylvania and Virginia. Drink Chia also will increase its packaging size from 8 oz. to 10 oz. without a price hike.

DianaPlantSciences, agreement with Solabia

DianaPlantSciences supplies vegetal ingredient manufacturer Solabia Group with bilberry extract for cosmetic and nutrition products. Portland, Ore.-based DianaPlantSciences said April 12 that the extract is high in polyphenols, antioxidants that could be indicated for reducing wrinkles by fighting free radicals generated by solar radiation. Solabia Group brings marketing services to the partnership and experience substantiating the benefits of bioactives. The French firm produces active ingredients for the cosmetics, pharmaceutical and nutritional industries. DianaPlantSciences develops phyto-actives and organoleptic and functional solutions for the cosmetics, nutraceutical and nutritional sectors.