Mylan expands U.S. OTC portfolio with acquisition of venerable cold brand

PITTSBURGH  — Mylan on Monday acquired the cold-fighting Cold-Eeze brand from ProPhase Labs in a deal valued at $50 million.



"The acquisition of Cold-Eeze further builds upon our $1 billion global OTC business and helps us to enhance our presence in the U.S. OTC market," stated Rajiv Malik, Mylan president. "We are excited to add another strong brand to our U.S. portfolio and see potential to build on its success by leveraging our expertise in the respiratory area. We also look forward to continuing to expand our presence in the global OTC market through product acquisitions, marketing and line extensions, and opportunities to leverage our portfolio into new markets."



The 20-year old brand includes a family of leading over-the-counter cold remedies currently sold in the U.S. market, including zinc-based lozenges, gummies, oral sprays, capsules and oral liquid dose forms. Cold-Eeze will become Mylan's largest U.S. OTC brand franchise, the company stated.



Under the terms of the agreement, Mylan, through its U.S. OTC subsidiary, will purchase substantially all of the assets and other rights relating to the Cold-Eeze brand, including all U.S. businesses and U.S. and international trademarks. The closing of the proposed sale, which is currently expected to occur in the first quarter of 2017, is subject to approval of the shareholders of ProPhase Labs and other customary closing conditions.



ProPhase is retaining ownership of its manufacturing facility and manufacturing business in Lebanon, Pa., and its headquarters in Doylestown, Pa., as well as its dietary supplements product lines which are currently under development. As part of the transaction, ProPhase, through its Pharmaloz subsidiary, will enter into a manufacturing and supply agreement with Mylan.



ProPhase was assisted by Bourne Partners, a boutique investment bank focused on the consumer health and pharmaceutical industries, in this transaction and is represented by the Reed Smith law firm.



Mylan's global OTC business includes brands such as Dona, Betadine, Saugella, ArmoLIPID, CB12, Brufen, EndWarts, Froben, Ferrograd, MidNite and Vivarin.