In brief | Dermapharm, Taisho, BioGaia, GSK

21 August 2018 - Deborah Wilkes

Dermapharm, Taisho Pharmaceutical and BioGaia have all recently released financial results, and media reports suggest several companies are interested in acquiring Horlicks and GlaxoSmithKline's other consumer healthcare nutrition products.

Acquisitions drive Dermapharm

Acquiring Strathmann and Trommsdorff helped lift sales at Dermapharm by 19.7% to EUR280 million (USD327 million) in the first half of 2018, according to the German company's preliminary financial figures.

Dermapharm's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) adjusted for one-off costs associated with its recent Initial Public Offering (IPO) were up by 29.9% to EUR70.9 million. The adjusted EBITDA margin was 25.3%.

The company plans to publish final figures for the first half of 2018 on 12 September 2018.

Taisho's Self-Medication sales fall

Taisho Pharmaceutical reported Self-Medication sales down by 5.2% to JPY42.5 billion (USD0.38 billion) in the three months ended 30 June 2018.

Around 80% of Taisho's Self-Medication sales were generated in its home market of Japan, where sales fell by 5.4% to JPY34.0 billion.

The Japanese company's overseas sales dropped by 6.4% to JPY7.75 billion. The overseas OTC drug business, which is being developed mainly in Asia, declined by 18.3% to JPY4.2 billion.

Operating profit at the Self-Medication division was up by 29.6% to JPY7.57 billion.

Taisho expects Self-Medication sales to increase by 1.4% in the 12 months ending 31 March 2019.

BioGaia grows by 29%

BioGaia reported sales up by 29% to SEK201 million in the second quarter of 2018. Excluding the impact of currency translations, sales were up by 26%.

The Paediatrics business of the Swedish probiotics specialist recorded sales up by 28% to SEK169 million, and sales by the Adult Health business were up by 39% to SEK32.1 million.

Operating profit was up by 19% to SEK72.9 million, giving a margin of 35.9%. BioGaia noted its accounting standards had been changed and operating profit would have grown by 30% without the changes.

BioGaia noted that its royalty agreement with Nestlé from the sales of growing up milk with Lactobacillus reuteri for children over one year of age would be terminated at the end of 2018. The Swedish company said Nestlé had communicated that it wanted to limit the scope of the agreement, which would result in significantly lower royalty revenue.

Horlicks attracts interest

Media reports are linking a range of companies with bids for Horlicks and GlaxoSmithKline's other consumer healthcare nutrition products. Coca-Cola, Kellogg, Mondelez, Nestlé, PepsiCo, RB and Unilever are among the companies named in various media reports.

GlaxoSmithKline announced in March 2018 that it was reviewing strategic options, including divestment, for Horlicks and its other consumer healthcare nutrition products (click here to read the News story).

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