Baby Formula Makers Eyed by Antitrust

Osem-Nestle with its Materna brand; Promedico, maker of Similac; Medici Medical, with its Optimal; and Teva Pharmaceuticals, with Nutrilon share a NIS 500 million market, but Materna and Similac control 97% of it.

Gabriella Davidovich-Weisberg
Gabriella Davidovich-Weisberg

One step before declaring the baby formula industry an oligopoly, Antitrust Commissioner David Gilo has isummoned the four leading companies to a hearing.

Osem-Nestle with its Materna brand; Promedico, maker of Similac; Medici Medical, with its Optimal; and Teva Pharmaceuticals, with Nutrilon share a NIS 500 million market, but Materna and Similac control 97% of it.

Israeli parents paid 18% more than their peers in the United States and 64% more than in Britain for equivalent products, a study conducted for the nonprofit Public Trust organization found. The Israeli companies were estimated to earn a 40% profit margin.

Baby formula

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