Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Pfizer Inc. (PFE), Bristol Myers Squibb Co. (BMY), and Alzheimer’s Milkshakes: The Growth of Medical Nutrition

Page 1 of 2

3 Drug Launches You Need to Know in 2013: Pfizer, NPS Pharma, Ariad PharmaA milkshake is not foremost on most people’s list of treatments for the neurological disorder Alzheimer’s. But a milkshake is indeed one treatment for those with early-stage Alzheimer’s disease, thanks to the recent United Kingdom release of Souvenaid. This milkshake and similar products are some of the many treatment options in an emerging hybridization of food and medicine.

Defining a Milkshake By “milkshake” I of course do not mean a dessert item purchased at a fast food drive-thru window. This milkshake is part of a product category commonly referred to as ‘medical nutrition,’ and includes liquid drinks, powdered substances, frozen fruit desserts, gelatin snacks and solid food items.

Blurring the lines between food and medicine, medical nutrition products are specially formulated to treat the many chronic diseases becoming increasingly prevalent worldwide, something that is making medical nutrition a sneaky, under-the-radar, growth opportunity.

The Players Involved

Although medical nutrition is a product category that combines food and medicine, the field is quietly becoming dominated mostly by the world’s largest food processing companies. Initially involved in the product category, the major pharmaceutical companies have decided to leave the market, conceding medical nutrition to those who have an expertise in selling and marketing food products directly to consumers (as opposed to big pharma’s expertise of marketing blockbuster drugs to health professionals).

Last year the Swiss food giant Nestle acquired the baby formula and medical nutrition division of Pfizer Inc. (NYSE:PFE). In 2009 Bristol Myers Squibb Co. (NYSE:BMY) spun-off its baby formula and pediatric medical nutrition division into the stand-alone company Mead Johnson Nutrition CO (NYSE:MJN). And in 2007 the French yogurt company Groupe Danone acquired the Dutch baby food, nutrition, and pharmaceutical company Numico. These three food companies, along with the recently demerged health care company Abbott Laboratories (NYSE:ABT), make up the major international players in the medical nutrition market. Each of these companies treat a variety of disease types and consumer demographics; with age groups spanning from unborn children to the elderly, and disease types ranging from malnutrition and diabetes to heart and liver disease.

Groupe Danone’s medical nutrition division, the maker of the previously mentioned Souvenaid Alzheimer’s treatment, currently comprised about 6% of the yogurt company’s net sales. Although 6% now, it is a fast growing segment for the company in emerging markets (China, Brazil and Turkey in particular), and should continue to grow in more developed markets once Souvenaid is available in more countries than just the United Kingdom.

Nestle’s nutrition division makes up about 7.8% of the company’s sales. Nestle has been on a bit of a shopping spree in recent years, expanding its presence in this huge growth area. In addition to the purchase of Pfizer Inc. (NYSE:PFE)’s medical nutrition division last year, Nestle also purchased Prometheus Laboratories in 2011 for the company’s cancer and gastrointestinal illness treatment products, Acera in 2012 for its Alzheimer treatments products, and purchased Pamlab just two months ago for that company’s diabetes medical nutrition products.

Mead Johnson Nutrition, the world’s largest baby formula maker, also specializes in a number of infant formula and supplement products for babies with severe intolerance and premature babies, as well as other medical nutrition products. These products comprise about 8% sales last fiscal year and have a huge presence in China, the company’s largest market.

Last but not least is Abbott Laboratories (NYSE:ABT). Since spinning off its pharmaceutical division into a separate company called AbbVie Inc (NYSE:ABBV), the newly demerged health care company’s nutrition division now accounts for more than 30% of sales (the company’s single largest division post-split). That number, though, does not separate out traditional baby formula sales from medical nutrition product sales (as the other three company’s sales do exclude traditional baby formula). Even still, Abbott Laboratories (NYSE:ABT) is a very large player in medical nutrition, with well-known brands such as Similac, Pediasure and Ensure.

Page 1 of 2
Loading Comments...