Arthur D. Little Forms Alliance to Help Improve the Flavor of Over-the-Counter Drugs.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--May 9, 2001

-- ADL teams with leading OTC information firm Nicholas Hall & Company to assist pharmaceutical industry with flavor challenges

-- First joint project will compare flavor quality of leading brands of cough, cold and flu products

Arthur D. Little, Inc., the world's premier consulting firm that set the standard for sensory analysis, has formed an alliance with the over-the-counter (OTC) drug information specialist Nicholas Hall & Company (NHC) to help the pharmaceutical industry measure, monitor and improve the flavor quality of popular OTCs.

"Flavor quality is one of the most important determinants in ensuring a product's market success, particularly as physicians, patients, and consumers are given more choices in new branded, generic and private label products. If it doesn't taste good, consumers won't buy it," said Jeff Worthington, a vice president and director in Arthur D. Little's food, health & nutrition business who will lead the team conducting the studies. He said flavor quality is also a key factor in helping ensure good patient compliance, which is particularly challenging with children's formulations.

The first initiative of the alliance with NHC will be a multi-client benchmarking study comparing the flavor, aroma, texture, and mouth-feel of 65 U.S. cough, cold and flu products, including Dimetapp, Motrin, Nyquil/Dayquil, PediaCare, Robitussin, Sudafed, Triaminic, Tylenol, and Vicks. This information will be particularly useful as some pharmaceutical companies reformulate their products in light of a recent ban by the Food and Drug Administration on the active ingredient phenylpropanolamine (PPA) due to safety concerns.

According to Elizabeth Beezer, regional vice president for North America, NHC, the $1.5 billion market for systemic cough and cold products fell by 3 percent in 2000, largely because of the FDA ban. The subsequent removal of well-established brands from store shelves has impacted seriously the market shares of leading players, especially in the pediatric segment.

As a result of this upheaval, a large part of the study will focus on pediatric products, which present a particular challenge to pharmaceutical companies because of children's well-documented aversion to distasteful medication. Future benchmarking studies will concentrate on U.S. antacids and analgesics, followed by similar reports in Europe.

Under the terms of the agreement, Arthur D. Little will conduct the studies, which will then be marketed and sold to clients by NHC, headquartered in Guernsey, British Channel Islands.

"This alliance with Arthur D. Little will help us provide manufacturers with the most accurate information on the flavor changes that will most quickly and effectively increase product appeal and sales," said Beezer.

Arthur D. Little has extensive experience conducting sensory analyses and formulation development for clients in both the prescription and OTC pharmaceutical markets to improve the palatability and consumer acceptability of their products. ADL has previously worked on 18 of the top 25 OTCs sold in North America. The company is also currently engaged in developing palatable oral dosage forms for a wide variety of drugs in clinical development ranging from HIV therapies to antibiotics.

About Arthur D. Little

Arthur D. Little, Inc. is the world's premier consulting firm working at the interface of business and the technologies that drive innovation and growth. Its scientists, engineers, and management experts work to advance technology, develop novel products, direct strategy decisions backed by technical know-how, and leverage intellectual property for business gain. The company is ISO 9001 certified and has more than 70 research and development laboratories. Arthur D. Little has been a pioneer in sensory science since the 1920s. Applying its Flavor Leadership Criteria, the company has helped create successful new products in nearly every category of consumer packaged goods: food, beverage, nutrition, personal care, and pharmaceuticals (Rx and OTC). www.adltechnology.com.

About Nicholas Hall & Co.

Founded by Nicholas Hall more than 20 years ago, NHC is considered the leading source of information on the global OTC market. NHC provides clients with accurate, timely and consistent market research. The company's services include four monthly publications covering various OTC markets around the work, a portfolio of syndicated reports on a range of OTC-related topics, ad-hoc consultancy projects, and a global database tracking OTC sales by brand in more than 80 countries.