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Novartis Consumer Health Reshuffled, Functional Foods On Sales Block

This article was originally published in The Tan Sheet

Executive Summary

Novartis is reorganizing its consumer health division by grouping together three businesses - OTC drugs, infant and baby and medical nutrition - and operating animal health and Ciba Vision as separate units, the firm stated during a year-end analysts call Feb. 7

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Ovaltine sale overseas

UK-based Associated British Foods picks up rights to malt-based product line worldwide, except for U.S. and Puerto Rico, with acquisition of Novartis' Food & Beverage business for about $267.5 mil. ($1=€1.02), firms announce Oct. 8. Himmel Nutrition has held U.S. licensing rights to Ovaltine since 1992, according to Novartis. Divested F&B business generated approximately $239.5 mil. in 2001 sales, constituting 43% of Health & Functional Food division's revenue; Novartis announced plans to divest the division in February (1"The Tan Sheet" Feb. 11, 2002, p. 12). Negotiations to sell other H&FF businesses, including Sports Nutrition division, "are proceeding," firm says. Benefiber, Resource Wellness supplement lines are housed in Novartis' Medical Nutrition unit, which is not for sale...

Sales & Earnings In Brief

Wyeth: Domestic Centrum sales rose 6% to $93.7 mil. in Q2, making it the only consumer brand of seven broken out by Wyeth to post positive U.S. results in the period. Brand revenue may have been helped by launch of Centrum Performance energy nutrition bars, in stores now (1"The Tan Sheet" May 6, 2002, p. 9). Advil sales fell 11.1% to $93.2 mil. in the U.S., while domestic Caltrate sales were off 10.6% at $15.2 mil. Similar to other cough/cold product manufacturers, Wyeth's financials were negatively impacted by a mild U.S., winter, with both Robitussin (down 9.7%) and Dimetapp (off 8.1%) feeling the effects. Consumer healthcare sales dropped 4% in U.S. to $308.4 mil. and were flat worldwide at $493.1 mil., Wyeth says in 2July 23 earnings release...

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