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Biotech / Medical : RXSD Rexall Sundown -- Ignore unavailable to you. Want to Upgrade?

To: Dorine Essey who wrote (48)	8/4/1998 5:54:00 PM
From: AlienTech	Read Replies (1) \| Respond to of 327

GENERAL NUTRITION, COMPETITORS SHARES OFF ON PRICING CONCERNS-ANALYST NEW YORK, Aug 4 (Reuters) - Shares of vitamin companies plunged on Tuesday after industry bellwether General Nutrition Cos. Inc. <GNCI.O> said it would slash prices on some products amid increasing price competition. GNC told analysts in a conference call Tuesday it would cut prices on sports nutrition products and widely-sold, single-ingredient vitamins, known as commodity-end vitamins, according to Gregory Miller, a company spokesman. Miller said the company would cut prices of sports nutritional supplements at about 200 stores and prices of commodity-end vitamins at all of its 3,500 stores. He declined to say whether price competition had cut into GNC profit margins in the second quarter or would do so in the third quarter. Analysts said the GNC move was spurring worries about further price cuts in an industry that has already seen several. "People feel that if GNC is selling products at a lower price, others will follow suit," said Laura Huskins, an analyst at Adams Harkness. GNC's rivals have already discounted many products this year, the analyst said. In mid-afternoon trading, GNC shares were off 5-1/4 at 22-3/4 on volume of nearly 10 million shares. Also down sharply were GNC competitors. Rexall Sundown Inc. <RXSD.O> was off 7 at 22-7/8, TwinLab Corp. <TWLB.O> was off 9 at 30-3/8, and NBTY Inc <NBTY.O> was off 4-1/16 at 12-3/16. Late Monday, GNC reported second-quarter earnings of $0.34 a share, in line with the First Call consensus of analysts' estimates. ((--Wall Street desk, 212-859-1730)) -------------------- TAL News Server History: ALERT : 98/08/04 14:20 ALERT : 98/08/04 14:20 ADD TAKE : 98/08/04 14:48