Novartis announced its intention to acquire the brands, trademarks, patents and intellectual property assets of Mead Johnson & Company's global adult medical nutrition business in a US $385 million cash transaction. Mead Johnson & Company, a subsidiary of Bristol-Myers Squibb Company, is a leader in sales and marketing of adult medical nutrition products.

Successful completion of the transaction will offer Novartis Medical Nutrition a strong presence in the fast-growing US retail channel for medical nutrition products, expand its existing institutional medical nutrition business and enhance its access to the Japanese market.

"The acquisition of Mead Johnson & Company's adult medical nutrition business re-confirms our commitment to delivering high-quality products that help people maintain good health, recover from illnesses more quickly, and build the strength and vitality to combat disease," said Michel Gardet, global head of Novartis Medical Nutrition. "Enhancing our medical nutrition portfolio will allow us to better serve the needs of the growing outpatient and ageing populations."

The percentage of the US population over 65 is expected to grow from 17 per cent to 25 per cent between 2005 and 2020.

Mead Johnson's principal adult medical nutrition brand Boost is a complete oral nutritional liquid product designed to meet the caloric and nutritional requirements of the adult population. Other key products include Isocal, an isotonic tube-feeding formula used to help patients manage inadequate voluntary oral intake due to conditions including cancer, anorexia and stroke; and Ultracal, a general tube-feeding formula for patients who require dietary fiber to help normalize bowel functions.

Headquartered in Evansville, Indiana, USA, Mead Johnson & Company will continue to manufacture and supply the majority of the acquired products for Novartis on an ongoing basis. Sales of the acquired products exceeded US $220 million in 2002.

Novartis Medical Nutrition, with global sales of US $711 million in 2002, offers a complete range of enteral and oral nutrition products and devices tailored to the varying needs of patients and healthcare professionals. The product range includes supplements, which are taken orally, as well as other products administered through tube feeds and specific medical devices. Its key brands include Isosource, Novasource, Resource, Impact and Compat.