NBTY Destroys $2.7 Million in Product

WASHINGTON--NBTY Inc. voluntarily destroyed approximately 90,000 units of Royal Tongan Limu, a supplement distributed through a subsidiary, Dynamic Essentials Inc., located in Lake Mary, Fla. The products--which were worth $2.7 million--were destroyed by being buried in a landfill with the Food and Drug Administration (FDA) bearing witness. The supplements contained fucoidan, a polysaccharide, and were promoted to treat diseases such as cancer and arthritis.

Dynamic Essentials first received an FDA cyber warning letter in 2002, informing the company that claims on its Web site were unsubstantiated and unlawful. Among the claims included statements that the product could "make cancer cells pop" and "lubricates joints to make them more flexible."

As reported in the Aug. 18 issue of INSIDER, Dynamic Essentials closed operations in July, shortly after an FDA follow-up visit. In a letter to the company's distributors, Gary Raser, president, wrote commissions and bonuses earned through the date of termination would be paid.

The news apparently didn't affect NBTY's stock. When the market closed, the company (NASDAQ:NTY) was up half a percent to $25.60.