P&G's acquisition of MDVIP - interesting idea

P&G recently announced acquisition of a stake in MDVIP, in which physicians keep practices small and focus on preventive care for fee-paying patients

Coca-Cola Co. this month bought Fuze Beverage, extending the beverage maker's line of drinks with Fuze juice and tea brands.

Johnson & Johnson Co. has also been active, obtaining cardiac stent maker Conor Medsystems and the consumer health products business of Pfizer Inc. in recent months.

P&G's chief executive explained the rationale for this purchase as giving his company "the time to learn; it gets us in early in the formation of the new category or segment."

At the heart of this interest in health related products and services is simple demographics and economics. More old, more healthcare spend. Simple as that.

MDVIP's founder said that he sees the P&G investment as a catalyst to keep building his business: "We think they are bringing a world of knowledge to us... they are masters of scaling and branding." The trick is applying all this global marketing power and not suffocating the entrepreneurial spirit that created the company in the first place. Dick Stroud