Profile: Mead Johnson Nutrition Company (MJN.N)

Mead Johnson Nutrition Company (Mead Johnson), incorporated in August 2008, is a pediatric nutrition company. The Company’s Enfa family of brands, including Enfamil infant formula, is a global brand franchise in pediatric nutrition. Its product portfolio addresses a range of nutritional needs for infants, children and expectant and nursing mothers. Mead Johnson markets its portfolio of more than 70 products to mothers, health care professionals and retailers in more than 50 countries in North America, Europe, Asia and Latin America. The Company’s two segments include North America/Europe and Asia/Latin America, which comprised 52.4% and 47.6%, respectively, of its net sales during the year ended December 31, 2007. The two principal product categories, in which the Company operates, include infant formula and children’s nutrition. In 2008, Mead Johnson launched Nutramigen AA, an amino acid infant formula for infants with severe protein allergies.

Infant Formula

The Company’s infant formula products include formulas for routine feeding and mild intolerance, as well as specialty formula products, including formulas for severe intolerance, formulas for premature and low birth weight infants and medical nutrition products. Mead Johnson designs routine infant formula as a breast milk substitute for healthy, full-term infants without special nutritional needs both for use as the infant’s sole source of nutrition and as a supplement to breastfeeding. The Company also provides products within its routine formula line for healthy full-term infants, who experience common feeding problems with symptoms, such as mild spit-up, fussiness or gas. Infant formula products represented 69.4% of its net sales during 2007.

Mead Johnson’s specialty formulas include formulas for severe intolerance; formulas for premature and low birth weight infants, and medical nutrition products. The Company designs formulas for severe intolerance to be used upon the specific recommendation and under the supervision of a doctor. It specially formulates these products for use by infants displaying symptoms of certain conditions or diagnosed with special medical needs. Nutramigen infant formula includes protein hydrolysate in the United States. The Company also designs products for premature and low birth weight infants to meet the infants’ needs under the supervision of a doctor, most often in the hospital. Mead Johnson also produces medical foods, or foods for special medical purposes, for nutritional management of individuals with rare, inborn errors of metabolism, such as maple syrup urine disease (Mead Johnson BCAD) and phenylketonuria (Mead Johnson Phenyl-Free).

Children’s Nutrition Products

Children’s nutrition products are designed to provide children with nutrition. The Company’s children’s nutrition business is available primarily in Asia, Latin America and Europe. Mead Johnson does not sell children’s nutrition products in the United States. The Company separates its children’s nutrition products into two categories: Enfa branded children’s nutrition products and other children’s nutrition products. Outside of the United States, it markets children’s nutrition products under the Enfa family of brands name. Mead Johnson designs these products to meet the changing nutrition needs of children at different stages of development. The Company offers products at Stages 3, 4 and 5 that are designed for children’s nutritional needs at 1 to 3 years of age, 3 to 5 years of age and beyond five years of age, respectively. Mead Johnson also produces a range of other products, including pre-natal and post-natal nutritional supplements for expectant and nursing mothers, including Expecta LIPIL, EnfaMama A+ and Enfamil Poly-Vi-Sol. Children’s nutrition products represented 27% of its net sales during 2007.