Bayer's Healthcare Consumer Care Division expects to expand its global OTC calcium market offerings through its planned acquisition of Mission Pharmacal's Citracal brand, according to company executives who also say the move will help the firm continue diversifying its nutritional product portfolio.

"This acquisition further affirms our strategy and commitment to grow our consumer health segments," Bayer Healthcare Chairman Arthur Higgins says in an Aug. 30 release announcing the agreement.

Higgins said the transaction will help solidify the firm's No. 2 position in the global OTC calcium market, which Bayer estimates at $1.23 billion annually with a growth rate of about 6 percent.

Total calcium product sales in U.S. supermarkets, drugstores and among mass merchandisers for 2007 through Aug. 12 was $260 million, a 4 percent increase in unit sales and 0.1 percent increase in dollar sales from the same point in 2006, according to Information Resources Inc. data.

A spokesperson for Morristown, N.J.-based Bayer Consumer Care said the firm already markets calcium supplements outside the U.S., but sought Citracal to enhance its offerings.

Since Bayer does not currently market calcium products in the U.S., the acquisition would "add to our portfolio," the spokesperson told "The Tan Sheet."

The firms' exclusive supply agreement provides Bayer with the Citracal trademark and global marketing rights to Mission's complete line of calcium supplement products, according to the firms.

While Bayer will acquire the Citracal brand, Mission will manufacture products in the line for Bayer.

The Citracal line includes Citracal Petites with Vitamin D, Citracal Caplets +D, Citracal Plus with Magnesium and other products, according to San Antonio-based Mission.

Financial terms of the agreement were not disclosed. The firms say they expect to close the deal during the fourth quarter of 2007, pending Federal Trade Commission approval.

Bayer Consumer Care President Gary Balkeman says the Citracal brand offers "very attractive growth potential both in the U.S. market and for our nutritional portfolio, which is a key driver for us now and in the future."

Bayer approached Mission about acquiring trademark rights to the supplement line before months of talks led to the agreement, Mission attorney Lee Kissenberry said.

"The presence of Bayer Healthcare in the U.S. is growing and they were looking for a calcium supplement to add to their line of products," Kissenberry told "The Tan Sheet."

"They approached us about adding Citracal as a trademark to their grouping of dietary supplements and nutritionals. We spoke about it over a long period of time and finally came to an agreement that was good for both Mission and Bayer," he added.

Meanwhile, Mission says it will focus on other OTC and prescription products it plans to continue to develop and market.

One of Mission's other products, the OTC analgesic cream Thera-Gesic , already is in national distribution, according to the firm.

"We think there is a lot of room and potential for that product as well," Kissenberry said.

He added the firms have also discussed adding Mission to Bayer's product manufacturing group. The agreement would position Mission to "make other vitamins and dietary supplements" for Bayer.

However, Bayer and Mission have not finalized the terms and conditions of how such an agreement would work.

Mission says it is looking for agreements with other drug firms to manufacture products at its facilities in Boerne, Texas, as well as San Antonio.

- Robert W. Mitchell (r.mitchell@elsevier.com)

Citracal Deal Will Move Bayer Into U.S. Calcium Market, Expand Portfolio

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