2 November 2021 - Deborah Wilkes
Medlab Clinical has sold its Australian nutraceuticals business to PharmaCare and Reckitt has sold its stake in Mead Johnson Nutrition Argentina.
Medlab’s deal with PharmaCare
Medlab Clinical has sold its Australian nutraceuticals business to Australian health and wellness company PharmaCare.
Australian biotechnology company Medlab said it was keeping its nutraceuticals rights for the rest of the world and was “actively pursuing significant opportunities”.
Giving its reasons for selling the Australian-only nutraceuticals business, Medlab said the cost of distribution in this competitive space was high and critical mass was essential to cover the cost of distribution.
PharmaCare’s Glenn Cochran said: “The acquisition of Medlab’s nutraceuticals business is a welcome addition of 29 new products to PharmaCare’s comprehensive portfolio of health and wellness brands.”
PharmaCare has paid AUD1.6 million (USD1.2 million) in cash and has agreed a two year earnout for the greater of AUD0.25 million or 5% of net sales per year during the first and second year.
The change in ownership took effect on 1 November 2021.
Reckitt sells stake in Mead Johnson Nutrition Argentina
Roemmers Group has acquired Mead Johnson Nutrition Argentina from Reckitt and Argentinian cooperative SanCor for an undisclosed sum.
The deal includes the SanCor Bebé and SanCor Bebé Premium brands in Argentina, Bolivia, Paraguay and Uruguay as well as the commercialisation of the EnfaBebé, Nutramigen and Enfamil brands in those markets for 10 years.
Reckitt said the cash impact of the transaction was “immaterial to Reckitt”.
Commenting on the deal, Reckitt said nutrition remained a core part of its strategy.
In June 2021, Reckitt announced that it was divesting its Infant Formula and Child Nutrition (IFCN) business in China to private-equity firm Primavera Capital Group in a transaction valuing the business at USD2.2 billion (click here to read the News story).
The deal followed a strategic review of IFCN China that was announced in February 2021.