In Brief: Nutrition Medical
This article was originally published in The Tan Sheet
Executive Summary
Nutrition Medical: Seeking corporate partner to complete development of private label versions of Ross Labs' Isomil and Similac infant formulas. The company plans to "significantly" restructure its adult nutrition supplement business by the end of the second quarter either by discontinuing all but the most profitable of accounts, selling or licensing the formulas, or completely phasing out the business, which includes a store brand version of Ross Labs' Ensure. "The adult nutrition business represents a disproportionate burden on corporate resources relative to the returns generated by the product line," the firm says. The division accounted for approximately 35% of the company's total sales in 1997 and about 1.3% of gross profits. "Given our current resources, we believe that a greater emphasis on our clinical nutrition business will increase the likelihood of profitability and help build a stronger base from which to expand future operations," the firm notes...