News Digest

AHP TO DROP PHARMAPRINT: American Home Products (AHP) says it plans to end an agreement within one year through which PharmaPrint (PPRT) makes herbal supplements sold under AHP’s Centrum brand. AHP is PPRT’s only major customer, according to Bloomberg News. Both companies have filed lawsuits against each other. PPRT alleges that AHP conspired to steal trade secrets and has asked a CA court to block AHP from selling products using information PPRT alleges was improperly obtained. AHP has accused PPRT of failing to live up to the terms of its agreement with AHP and says it is being falsely accused of “misappropriating” PPRT’s technology to develop products. PPRT stock plunged on the news to near $1/share from a 52-week high of around $15/share.

NBTY TO ACQUIRE NUTRITION WAREHOUSE, POSTS STRONG 4Q99 RESULTS: Supplements maker NBTY (NBTY) says it has agreed to acquire Long Island, NY-based Nutrition Warehouse and its affiliated companies for $20 million in cash and about 1.1 million shares of NBTY stock. Nutrition Warehouse operates a mail-order vitamins and supplements business, and its affiliated companies operate 15 retail outlets around Long Island. NBTY posted 4Q99 sales of $167.1 million, up 14% from $146.4 million in 4Q98. Net income for 4Q99 was $12.6 million or $.19/diluted share vs. $7.1 million or $.10/diluted share in 4Q98.

CELESTIAL SEASONINGS IN BRAND-NAME

LICENSING DEAL WITH ARIZONA BEVERAGES: Celestial Seasonings (CTEA) has announced a strategic partnership with New Hyde Park, NY-based Arizona Beverages to license CTEA’s brand name for use in its ready-to-drink iced-tea products. Privately held Arizona makes ready-to-drink

flavored teas, juices and coffees. The alliance will create a CTEA line of herbal ready-to-drink iced teas that will be produced and distributed by Arizona Beverages.

KELLOGG AXES ENSEMBLE FUNCTIONAL FOODS LINE: After less than a year on mainstream grocery-store shelves, Kellogg’s (K) Ensemble functional foods line, consisting of nutritionally enhanced cereals, cookies, lasagna and other foods, will be discontinued by the cereal giant. The company also announced it folded the functional foods division responsible for Ensemble. Ensemble is expected to be off store shelves by the end of the year.

NUTRICEUTICALS.COM COMPLETES $12 MILLION IPO: Largo, FL-based online vitamins and supplements seller Nutriceuticals.com completed an IPO of 1.2 million shares of stock at $10/share. The stock will trade on the Nasdaq exchange under the ticker symbol DMAX. Underwriters were led by Kashner Davidson Securities Corp.