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Leiner OTC Sales Buoy Company Performance As Supplement Market Slows

This article was originally published in The Tan Sheet

Executive Summary

Leiner Health Products is committed to reinvigorating its struggling dietary supplement business despite the sluggish market atmosphere and the recent success of the company's growing OTC portfolio.

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Leiner Health Products' private label OTC drug sales rose 51% to $98.8 mil. in fiscal 2000, boosted by a $33 mil. net sales contribution from the Granutec and Stanley businesses.

PlanetRx

August launch planned for private label OTCs made by Leiner Health Products and priced at 20%-25% below brand name equivalents. Products include aspirin, acetaminophen, ibuprofen, naproxen sodium, cold & allergy tablets and complete allergy minitabs and capsules (Warner-Lambert's Benadryl), decongestant/antihistamine elixir and DM cough & cold elixir (Whitehall-Robins' Dimetapp), day/night cold & allergy liquid caplets (SmithKline Beecham's Contac Day/Night Cold & Flu), as well as antacids and laxatives. The e-tailer already stocks a line of private label supplements (1"The Tan Sheet" April 24, p. 14). Private label OTCs have contributed significantly to Leiner's growth (2see story, p. 14)

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