Under-fire sugar pill company's profits surge

A health supplement firm warned about claims its products could cure a range of conditions has rapidly increased its profits, with sales topping almost $20 million last year.

Despite health authorities expressing concerns about the marketing of the sugar pills and powders made by Texas-based Mannatech, the company's sales have increased almost five-fold in the past two years.

Company documents say its New Zealand sales have surged from US$2.3 million ($3.4 million) in 2002 to US$12.9 last year.

Mannatech uses a multi-level marketing structure where an army of associates sell the products and sign up new recruits. There are 7000 associates in New Zealand.

Last year Medsafe - the authority that regulates therapeutic products in New Zealand - warned the firm about a number of its associates promoting the dietary supplements as if they were medicines providing a therapeutic benefit, which contravenes the Medicines Act.

The company says it disciplined those associates and educated them on what they could and could not say.

The Herald has found instances where the products are still marketed apparently on the basis that they will cure various conditions.

A website run by an Auckland man has a section showing how Mannatech or "glyconutrients" have been beneficial for people suffering multiple sclerosis, cerebral palsy, diabetes, Down Syndrome, arthritis and ruptured brain aneurism.

There are even questions about the official US website, with the company confirming that information on it contravened NZ regulations.

Mannatech's products are based on sugars which it says aid communication between cells and help the body's immune system.

The Australian-based general manager, George Howden, said he stood by the products.

"I believe in them, I believe they guarantee my body has what my body needs to do its job."