New Nutrition Business, March 2003

The consolidation of its Scandinavian joint venture with Nycomed lifted sales by 223% in 2002 for weight-loss science specialist Nutri Pharma. This offset an 18% decline in sales of its soy-based weight-loss products in GNC in the U.S. The Oslo stock-exchange quoted company said in its 2002 results statement that Nutrition Partners, the company’s 50/50 JV with Nycomed to market Nutrilett brand weight-loss products in Scandinavia, earned revenues of NOK 77.8 million (€10.3 million), compared to NOK 43 million (€5.7 million) the previous year.

However, royalty revenues generated from its licensing agreement with GNC in the North American market fell as a result of lower sales for Scan Diet - the brand under which GNC sells Nutripharma’s ingredients - and the weakening of the American dollar.

GNC’s sales of Scan Diet slid 18% from $13.7 million in 2001 to $11.2 million in 2002. The fall comes after two years of steady growth for Scan Diet, which at its launch was described by GNC as its “most successful new product launch ever”. GNC offers a full range of Scan Diet products including powdered drinks and RTD beverages and bars.

Nutri Pharma attributes Scan Diet’s problems in 2002 to GNC’s restructurings and internal marketing restrictions.

2002 saw the Nutri Pharma range launched in Australia and New Zealand through Mayne Health (formerly Faulding Healthcare), under the Nutriplan brand, supported by significant TV campaigns.

Nutri Pharma’s IP position internationally is founded on 12 patent families with approximately 1,000 patent claims. The patents protect Nutri Pharma’s patented soy technologies combining soy proteins, phospholipids and fibers to treat and prevent diseases associated with the metabolic syndrome, as well as composition and process patent applications. The company’s IP is backed by more than 40 clinical and pre-clinical trials.

In the company’s NPD pipeline is its ingredient Abacor, which Nutri Pharma says has been documented as being the most effective soy composition to lower cholesterol and Nutri Pharma is looking at expanding its Abacor brand into areas where soy has other proven health benefits, including female health, heart health, type 2 diabetes and sports nutrition.

During 2002 Nutri Pharma says that it also developed prototype savoury, bar and ready to drink products incorporating the Abacor blend, in collaboration with companies such as Tetra Pak, which will be used to demonstrate the potential for the Abacor to potential partners.