Business & Finance In Brief: GSK | MJN | Actavis | ScripsAmerica

GSK spotlights oral care; Mead Johnson weighs China pricing effects; USANA builds on Asia enthusiasm; FMC lands omega-3 firm Epax; Actavis eyes additional M&A activity; ScripsAmerica grows OTC and Rx distribution.

GSK spotlights oral care

Sales of GlaxoSmithKline PLC’s oral care brand Sensodyne lead Consumer Healthcare sales with 2% growth in the second quarter to $1.99 billion. The company reported July 24 that oral care sales were up 8% to $736.6 million, with sales of the Sensodyne Sensitivity and Acid Erosion up 19% in the April-June period. This was offset by a 9% decline in sales of Aquafresh. Consumer Healthcare overall sales grew 5% in the first half of 2013, excluding non-core OTC brands that in the first half of 2012. The firm also sold off 19 international brands to Aspen Pharmacare Holdings Ltd. in 2012 for $263 million (Also see "Only Alli Remains After Glaxo’s OTC Transaction With Aspen" - Pink Sheet, 23 Apr, 2012.).

Mead Johnson weighs China pricing effects

Market analysts criticize Mead Johnson Nutrition Co.executives on the firm’s July 25 second-quarter earnings call for leaving little time to discuss the outlook in China, where Mead Johnson has lowered the price of its infant formula products by as much as 15% in response to a government antitrust review (Also see "In Brief" - Pink Sheet, 15 Jul, 2013.). The firm expects a loss of $55 million to $65 million in annual sales revenue in China, though CEO Peter Kasper Jakobsen said the lower pricing could in turn reduce Mead Johnson’s need to spend on short-term promotional activity in China. The Glenview, Ill., company’s second-quarter net sales increased 4.2% to $1.06 billion, with the Asia/Latin America segment up 7.9% and North America/Europe down 4%. The stable U.S. birth rate continues to drag on Mead Johnson’s domestic sales, offset by a growth in sales to customers not using the federal Women, Infants and Children supplemental nutrition program. Mead Johnson’s net income was 4.4% lower at $163.6 million for the April-June period.  

USANA builds on Asia enthusiasm

USANA Health Sciences Inc. says it outperformed expectations in Asia, especially Greater China, following its Asia Pacific convention in the first quarter. The multilevel marketer of nutritional and personal care products said July 23 that an international convention to be held in its hometown of Salt Lake City in August will feature new company announcements for its independent distributors. USANA’s second-quarter net sales in Asia Pacific grew 24.3% to $122.4 million, while overall sales increased 17.5% to $189.1 million. Net income jumped 44.6% to $24.2 million in the quarter ended June 29, while earnings per diluted share rose to $1.72 from $1.11. The firm grew its active associate ranks by 19,000 to close the quarter with 254,000 worldwide. Separately, USANA executives declined to comment on a Securities and Exchange Commission investigation into stock trading by the firm’s directors.

FMC lands omega-3 firm Epax

Chemical and ingredient company FMC Corp.acquiresNorwegian omega-3 ingredient supplier [Epax AS] for approximately $345 million. Philadelphia-based FMC said July 24 the deal shows its commitment to expanding its health and nutrition platform through an increased presence in nutraceuticals and other fast-growing categories; FMC also supplies chemicals to OTC drug manufacturers, as well as the agricultural, environmental and industrial sectors. Epax since 2010 was held by Trygg Pharma Group AS, itself owned jointly by Aker BioMarine ASA and private equity firm Lindsay Goldberg (Also see "EPAX changes hands again" - Pink Sheet, 6 Sep, 2010.). As part of the acquisition, FMC entered into an agreement with Trygg to supply omega-3 fish oil concentrate as an active pharmaceutical ingredient.

Actavis eyes additional M&A activity

Allergan PLC is “actively” looking for deals across its networks and in multiple geographies, even as it waits to close its $8.5 billion acquisition of Warner Chilcott PLC, likely to take place in October, pending Federal Trade Commission approval, CEO Paul Bisaro told analysts on a July 25 half-year earnings call (Also see "Actavis’ Warner Chilcott Buy Brings Switch Options In Diversified Portfolio" - Pink Sheet, 27 May, 2013.). The company is investing in its generics and specialty branded pharmaceuticals businesses, targeting high-growth areas. For Actavis Pharma, the generics business generating more than 80% of the firm’s revenues, Central and Eastern Europe, Russia, Southeast Asia, and also Australia, and Japan offer potential opportunities. Bisaro noted the company looks at the pharma space “holistically,” including OTCs, branded drugs and generics, depending on market need.

Half year and quarterly numbers for both Actavis and Warner Chilcott, which reported the same day, were mostly in line with analysts’ expectations. Actavis net revenue climbed 46.8% to $1.99 billion in the second quarter, while an asset restructuring charge and impairment to goodwill led to a net loss of $564.8 million, compared to a loss of $62.2 million in the year-ago period.

ScripsAmerica grows OTC and Rx distribution

Pharmaceutical supplier ScripsAmerica Inc. expands its OTC and Rx product distribution in the U.S. and China through 35 to 50 independent pharmacies with group purchasing organizations under an agreement with a network buying group. The Longhorne, Pa., firm said July 16 it also plans to expand into Asia by introducing its RapiMed orally dissolving products to China either through license or joint venture, according to a June 24 release. The firm launched RapiMed analgesics in the U.S. in 2012 (Also see "ScripsAmerica Launches RapiMed To Beat Tylenol Meltaways" - Pink Sheet, 27 Aug, 2012.).