Pediatric nutrition products provider Mead Johnson Nutrition Company MJN recently launched its Enfinitas premium-priced product line in China. The product line targets rapid expansion in the densely-populated Asian markets. To begin with, the company is slated to roll out the Enfinitas line in the Chinese market in the coming weeks.
The move is consistent with the company’s strategy to further broaden its science-based product portfolio. According to Mead Johnson, over time, the Enfinitas product line will strengthen its competitiveness in infant nutrition – the fastest-growing segment within this category in China.
The launch of Enfinitas is the result of Mead Johnson’s extensive and five-year long global research on human milk. The worldwide multiple authoritative scientific research institutions, which were engaged in this research phase, covered populations from Asia, Europe, North America and South America in their studies.
According to Mead Johnson, Enfinitas contains Lactoferrin and Milk Fat Globule Membrane (MFGM) – which are naturally present in breast milk. These two components are known to provide structural and functional benefits to infants.
Combined with the company’s gold standard level of DHA (docosahexaenoic acid; a long chain polyunsaturated fatty acid known to be good for developing infant brains and hearts), these two critical components are claimed to help support brain development, immune system function and digestive health.
We note that, in the Chinese market, despite the current economic turmoil, Mead Johnson has continued with its investments. These include price promotions for locally manufactured products to protect competitiveness and advertisement and promotional support for the fully imported product line introduced earlier in 2015.
Mead Johnson has already introduced a fully imported range of Enfa branded products in China to complement its locally manufactured range. We believe the strategies implemented by the company will help reap the immense potential embedded in the high-growth emerging markets.
However, at present, Mead Johnson carries a Zacks Rank #4 (Sell).
Key Picks in the Sector
Some better-ranked stocks in the medical sector are Baxter International Inc. BAX, Hill-Rom Holdings, Inc. HRC and OraSure Technologies, Inc. OSUR. All the three stocks sport a Zacks Rank #1 (Strong Buy).
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