[March 30, 2015] |
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GNC Reaches Agreement with New York Attorney General
GNC Holdings, Inc. (NYSE:GNC), a leading global specialty retailer of
health and wellness products, today announced that it has reached an
agreement with the New York Attorney General regarding the Company's
Herbal Plus® products. The agreement affirms that the relevant GNC
products were in full compliance with the federal Food and Drug
Administration "Current Good Manufacturing Practices" and acknowledges
GNC's full cooperation with the Attorney General's inquiries.
In its response to the NYAG's inquiry, and as highlighted in the
agreement, GNC provided the results of rigorous tests conducted both
internally and by independent third parties. These tests provided
conclusive evidence that GNC's products are safe, pure, properly labeled
and in full compliance with all regulatory requirements. The testing
also demonstrated that the Company's products contain all herbal
extracts listed on their respective labels. In addition, a former senior
FDA GMP expert performed a comprehensive review of GNC's manufacturing
processes for the products at issue and found them to be in compliance
with all applicable requirements. Accordingly, GNC has restored its full
assortment of Herbal Plus® products to all GNC stores in New York State.
As part of its commitment to industry leadership, GNC will expand its
testing processes deeper into its supply chain by leading ongoing
industry efforts to integrate source material traceability standards
including DNA barcoding where appropriate (prior to extraction
processes) and enhance certain other aspects of its operations to
provide cnsumers even greater confidence in its products. The Company
believes that given its position as an industry leader, these measures,
which would not have impacted availability of the products subject to
this review, will result in the adoption of stricter minimum standards
across the broader industry - a win for the industry, the Company and
consumers.
"As our testing demonstrated, and this agreement affirms beyond any
doubt, our products are not only safe and pure but are in full
compliance with all regulatory requirements," said Michael G. Archbold,
Chief Executive Officer of GNC. "A robust testing regime, careful
sourcing regimen and detailed manufacturing specifications have always
been core elements to ensuring that we provide our customers with high
quality products. Our customers trust and value our products, and we are
steadfastly committed to maintaining that trust and confidence. As an
industry leader we have always gone above and beyond the minimum
requirements in pursuing quality for our consumers, and we will continue
to lead the efforts for higher standards. This is good for consumers,
good for the industry, and good for GNC."
GNC has preserved the specific product lots of the five products that
were the subject of this inquiry for use in defending the Company
against the lawsuits that have been filed subsequent to the NYAG's
February 2 letter, despite the fact that there is no prohibition against
the sale of such products. The Company believes these lawsuits are
completely without merit and will defend itself aggressively. Identical
products to those that have been preserved remain available for sale to
consumers at GNC stores in New York State.
About GNC Holdings, Inc.
GNC Holdings, Inc., headquartered in Pittsburgh, PA, is a leading global
specialty retailer of health and wellness products - including vitamins,
minerals, and herbal supplement products, sports nutrition products and
diet products - and trades on the New York Stock Exchange under the
symbol "GNC."
The Company has a diversified, multi-channel business model and derives
revenue from product sales through company-owned retail stores, domestic
and international franchise activities, third party contract
manufacturing, e-commerce and corporate partnerships. GNC's broad and
deep product mix, which is focused on premium, value-added nutritional
products, is sold under GNC proprietary brands, including Mega Men®,
Ultra Mega®, Total Lean™, Pro Performance®, Pro Performance® AMP, Beyond
Raw®, GNC Puredge™, GNC GenetixHD®, Herbal Plus® and under nationally
recognized third party brands. As of December 31, 2014, GNC has more
than 8,900 locations, of which more than 6,600 retail locations are in
the United States (including 1,070 franchise and 2,269 Rite Aid
franchise store-within-a-store locations) and franchise operations in
more than 50 countries (including distribution centers where retail
sales are made).
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