JONES MEDICAL MARKETING FOCUS ON THROMBINAR
JONES MEDICAL MARKETING FOCUS ON THROMBINAR: a topical thrombin product acquired last September from Rorer. St. Louis-based Jones paid $3.4 mil. in cash and $2.5 mil. in a five-year promissory note for Thrombinar, which is used to stop surgical bleeding. In the first quarter, Jones reported a nearly 63% jump in sales to $4.4 mil., of which Thrombinar generated approximately $1.4 mil., or 82% of the increase. To support product sales, Jones Medical has created its own hospital sales and marketing staff for Thrombinar comprising half the company's 16-person total sales force. Due to Thrombinar, which is still produced for the company by Rorer's Armour Pharmaceuticals unit, Jones Medical's first-quarter selling expenses increased 74% due to the Thrombinar launch, the firm noted in a June 15 SEC filing -- covering a 900,000 share offering. Thrombinar spray, set for a fall launch, should provide a competitive edge for the product's use in stopping surgical bleeding over competitors Thrombogen from J&J and Thrombostat from Parke-Davis, Jones Medical indicated. The acquisition of Thrombinar helped Jones Medical to achieve fourth-quarter sales of $4.5 mil., a 50% jump from the fourth-quarter of 1988. Fourth quarter net income increased 102% to$700,000, from $347,000 in the prior fourth quarter. The company said profits and revenues from the fourth quarter of 1989 may have been affected favorably "by a shortage in the availability" of competitive products, Thrombogen and Thrombostat. In addition, staffing expenses were modified because the hospital marketing group was not fully staffed until the beginning of the second quarter of 1990. However, the company says that Thrombinar sales are now slowing. The SEC filing outlines a July 19 offering by Jones Medical of 900,000 shares of common stock at $12.75 per share, of which 750,000 shares are being offered by the company; the remainder are being sold by stockholders. The offering is expected to raise$9.6 mil. in gross proceeds. The "red herring" prospectus on the offering says proceeds will be used for working capital for general corporate purposes, and for possible acquisitions, the company's main growth vehicle. Approximately $2 mil. of the offering will be allocated to pay bank debts incurred in 1989, in part from the acquisition of Thrombinar. Of the $4.4 mil. total in first quarter revenues, $3.1 mil. came from branded products ($2.1 mil. in pharmaceuticals and$953,000 in vitamins), representing an 88% increase from the first quarter a year ago; $1.4 mil. was from contract products ($406,000 in pharmaceuticals and $957,000 in vitamins), a 32% increase. The company's MD Pharmaceutical Vitamins accounted for 26% of unit volume sales of vitamins in military commisaries during 1989, according to Jones. The acquisition of Thrombinar indicates Jones Medical's shifting emphasis toward branded products. Branded drugs and vitamins generated 65% of the $13.3 mil. in total 1989 sales, compared to 55% in 1988. Last year, Jones sold $5.1 mil. in branded pharmaceuticals and $3.6 mil. in branded vitamins, a total of $8.7 mil. in the branded product market. The company generated revenues of $4.6 mil. from contract manufacturers with $1.4 mil. from pharmaceuticals and $3.2 mil. from vitamins.
You may also be interested in...
Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011
FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials
Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth