Company news: GSK; J&J; CementBloc
GlaxoSmithKline is getting rid of more of its OTC brands, this time in Europe. The company said it's selling Lactacyd, Abtei, Solpadeine, Zantac, Nytol and Beconase to Omega Pharma for €470 million (around $614 million). Those brands pulled in £185 million ($290 million) last year. Conspicuously absent from the list was GSK's OTC weight loss treatment Alli, the sale of which, Reuters reported, has been put on hold pending resolution of an interruption in the supply of a critical ingredient manufactured by Roche. The company last year sold a tranche of US OTC drugs to Prestige Brand Holdings for £426 million ($667 million, at today's rate of exchange).
Johnson & Johnson CEO William Weldon will be leaving his corner office with heavy pockets. The company's latest SEC filing shows that despite a running list of product recalls and lawsuits, Weldon hit key performance metrics and will leave with his full annual performance bonus and long-term incentive grants that total $18.4 million dollars. His total compensation was $26.8 million last year, a slight drop from 2010's $28.7 million. The SEC filing notes that the success metrics include the CEO's annual financial and strategic goals, and that J&J saw sales grow 5.6% last year, maintained its AAA credit rating and exceeded the S&P 500 and Dow Jones Index shareholder returns. The company acknowledged the product mishaps, saying “continued focus is needed to address critical product supply and quality issues that impact our responsibility of being able to deliver products to patients and customers who need them.” It also notes that Weldon cultivated “excellent candidates for CEO succession,” and “successfully managed our company through a challenging environment in 2011.”Bloomberg pegs Weldon's retirement pension at $48.4 million.
Agency The CementBloc announced a corporate partnership with Rutgers Business School's Market Research Insights and Analytics Flex MBA program for the 2012-2013 academic year. The agency will be one of several companies supporting the program with advice guest lecturers and industry perspectives, and the only ad agency.