“Perfect Storm” Flattens Perrigo Consumer Sales, Cuts Income 57%
This article was originally published in The Tan Sheet
The harsh winter, weak cough/cold season and poor retail environment created “a difficult quarter for our consumer business,” which reported flat sales, says Perrigo CEO Joseph Papa. The firm also reported a continued delay in re-launching generic versions of the Mucinex expectorant line.
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The private labeler reported $53 million in new product sales for its Q2, but says the return to stores of branded OTCs, which had been recalled due to manufacturing problems, continues to diminish its consumer health product sales growth.
The private labeler’s long-delayed guaifenesin launch now tentatively is set for March, CEO Joseph Papa says. But unclear timelines for other OTC launches caused Perrigo to lower its fiscal year consolidated new product sales outlook to $150 million from an initial projection of more than $190 million.
Martek BioSciences will be the exclusive, worldwide supplier of DHA (docosahexaenoic acid) and ARA (arachidonic acid) to infant formula company Mead Johnson (Enfamil) according to a ten-year supply agreement, the firm announces May 18. The agreement is an expansion and extension of a 25-year license agreement signed in 1992. Martek's blend is the only source of these nutrients currently used in U.S. infant formula. However, Abbott Lab's Ross Products Division's (Similac) tuna oil-derived DHA and fungally-derived ARA was granted Generally Recognized as Safe status for use in infant formula by FDA May 18. Martek does not expect to lose customers to Ross because of the latter's GRAS status, the firm asserts in a same-day release. "The levels of DHA and ARA specified in the notification are significantly lower than levels used in the majority of all term and pre-term infant formula sold in the U.S.," Martek notes...