Wyeth’s International OTC Growth Offsets Drop In U.S. Robitussin Sales
This article was originally published in The Tan Sheet
Executive Summary
Sales of Wyeth's OTC products increased 10.4 percent worldwide in its fiscal 2008 first quarter despite a 14.2 percent drop in sales of its Robitussin cough/cold products, the firm says
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Sales of Wyeth's OTC products increased 10.4 percent worldwide in its fiscal 2008 first quarter despite a 14.2 percent drop in sales of its Robitussin cough/cold products, the firm says. Sales of Caltrate calcium products and Centrum vitamins led Wyeth's Consumer Healthcare segment in the January-March period. Caltrate sales grew 18.6 percent to $56.9 million and Centrum sales increased 18.1 percent to $187.9 million, according to the firm's April 22 earnings release. Madison, N.J.-based Wyeth's overall OTC sales for the quarter reached $675.2 million, with the segment's 20.3 percent growth to $291.3 million in international sales offset by flat sales of $324.7 million in the U.S. "International consumer revenue growth was very strong in the quarter ... and we continue to expect high single-digit growth in our consumer business for the year," Wyeth Chief Financial Officer and Senior VP Gregory Norden said in a same-day earnings call. International sales of Wyeth's Chapstick products prevented the overall numbers from slipping more than 4.3 percent. While U.S. Chapstick sales fell 8.9 percent to $17.5 million, international sales were up 18.9 percent to $11.1 million, according to the release. Overall sales of Robitussin products decreased to $41.9 million. International sales grew 11.4 percent to $15.4 million, but U.S. sales declined by 24.4 percent to $26.5 million, the firm says. Wyeth's total sales for the quarter increased 6 percent to $5.7 billion, the firm says. The dip in Robitussin sales came after the decision in October 2007 by Wyeth and other firms marketing products in the U.S. to voluntarily withdraw OTC oral cough/cold drugs for children under 2 due to concerns of misuse (1 (Also see "Infant Cold Products Pulled; Waxman Looks For More OTC Risks" - Pink Sheet, 15 Oct, 2007.), p. 6). Wyeth's U.S. OTC sales also likely were affected by its decision in October to voluntarily recall and replace Children's Dimetapp Cold & Chest Congestion products and multiple Robitussin products because the dosing cups were not marked with half-teaspoon units, the recommended dose for children ages 2 to 6 (2 (Also see "Wyeth Replaces Dosing Measure For Pediatric Dimetapp, Robitussin Products" - Pink Sheet, 5 Nov, 2007.), p. 8). - Malcolm Spicer ([email protected]) |