AM I NEXT? IS THE HANDWRITING ON THE WALL AT NESTLE SKIN HEALTH

Following a comprehensive strategic review which is scheduled to be completed in mid-2019, Zurich, Switzerland-based Nestle has decided to increase the company’s attention on their traditional core products in the foods, drinks, and nutritional health sectors.

It appears that Nestle will be exploring “strategic options” for its Skin Health business which includes the well-known face care products Cetaphil and Proactiv. It is believed that the decision was driven in part by activist hedge fund investor Dan Loeb who runs Third Point and who appeared to have recommended the sale. The division, with sales of approximately $2.8 billion in 2017 could go for an estimated $8+ billion.

The handwriting is clearly on the wall. Employees should be prepared for job cuts as the unit is prepared for sale and then additional cuts after any acquisition or merger as duplicative functions are eliminated and the firm is integrated into a new business framework.

Are you wondering, Am I Next?

AM I NEXT? NO LOVE AT DaVITA RX

The restructuring of the pharmaceutical supply chain, from researchers to retail appears to be continuing unabated.  

Denver, Colorado-based DaVita RX, the pharmacy subsidiary of the kidney dialysis giant DaVita is being sold to retailer Walgreens. This will result in major layoffs throughout the operation including 869 employees in the Coppell, Texas and 109 employees at a pharmaceutical distribution facility which it plans to close in Orlando, Florida. Some employees will be offered the opportunity to transition to Walgreen retail stores or central distribution facilities. 

A statement from a Walgreen’s spokesperson noted, “On July 25, we reached an agreement with DaVita Rx, a pharmacy owned by DaVita Inc. to service patients with kidney disease, to purchase DaVita’s non-dialysis related prescription files that are billed as a pharmacy benefit, mostly under Medicare Part D,” a Walgreens spokesperson said in an emailed statement. “This prescription file-transfer sale is anticipated to close in September and when the anticipated deal closes, patients who use DaVita Rx’s pharmacy mail services will have the opportunity to transition to become Walgreens retail pharmacy patients.” 

Are you wondering, Am I Next?