Bristol/Novartis deal
This article was originally published in The Tan Sheet
Executive Summary
Bristol-Myers Squibb has completed the sale of its U.S. and Canadian Consumer Medicines business to Novartis AG, the firm announces Aug. 31. The transfer of the rights to Bristol's OTC brands in Latin America, Europe, the Middle East and Africa should be completed by the end of the year, Bristol says. Novartis adds the Excedrin analgesic line, Bufferin aspirin, No-Doz caffeine pills and others to its current U.S. OTC line-up of brands, which include the Theraflu cough/cold line and Maalox antacids. The sale was announced July 14 (1"The Tan Sheet," July 18, 2005, p. 3)...
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Bufferin, Excedrin sale in Asia
Bristol-Myers Squibb plans to sell its Bufferin and Excedrin pain relief brands in Asia (excluding China and Taiwan) and certain Oceanic countries to Japanese firm Lion Corporation for approximately $250 mil. (¥30.4 bil.), BMS announces June 29. Expected to close during the third quarter pending regulatory approvals, the deal will allow BMS to "focus on its strategic priorities in developing its pipeline and new product opportunities in disease areas of significant unmet need," the firm notes. BMS sold its Consumer Medicines businesses, including the Bufferin and Excedrin brands, in the U.S., Canada and other markets to Novartis AG in 2005 (1"The Tan Sheet" Sept. 5, 2005, In Brief). In a separate agreement, BMS and Lion have agreed to the dissolution of the firms' medicines joint venture...
Excedrin sampling
Novartis is linking its Excedrin to the equity of "Go" and its message of "The Pain Stops. You Don't." in its most recent advertising and marketing campaign for the headache reliever, the company states. In addition to launching new print and TV advertising spots, the firm has initiated a sampling program that "engages our target audience at lifestyle-appropriate venues and locations," Novartis states. The firm is targeting consumers that "meet our demographic of active lifestyles" at "on the go" locations venues including cruise ships, health clubs and coffee shops as well as commuter and college sampling. Novartis acquired Excedrin as part of its purchase of Bristol-Myers Squibb's Canadian Consumer Medicines business in September 2005 (1"The Tan Sheet" Sept. 5, 2005, In Brief)...
Novartis sales
Double-digit OTC growth drove Novartis Consumer Health first-quarter sales up 4% to $1.82 bil., the firm reports in an April 24 earnings call. "Strong expansion" in OTCs due to the acquisition of Bristol-Myers Squibb's consumer business was one major factor; the purchase, completed in August 2005, brought in brands such as Excedrin and Bufferin pain relievers (1"The Tan Sheet" Sept. 5, 2005, In Brief). Novartis cited a "good" U.S. cough/cold season as a driver of first-quarter revenue; brands include Theraflu, Comtrex and Triaminic. Higher sales of the analgesic Voltaren (diclofenac) in Europe also contributed. Consumer Health operating income increased 60% to $458 mil., mainly due to a $129 mil. gain from the divestment of the Nutrition & Sante functional food business, completed in February 2006 (2"The Tan Sheet" Dec. 5, 2005 In Brief). Overall net sales were up 13% to $8.3 bil., while net income grew 32% to $1.96 bil....