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This article was originally published in The Tan Sheet

Executive Summary

DENTO-MED DEVELOPING OTC DRUG APPLICATIONS FOR HYDRON DELIVERY SYSTEM focusing on topical forms of hydrocortisone, tolnaftate and salicylic acid, the firm said in a June 2 release. Dento-Med said it is "actively" communicating with drug companies that manufacture topical analgesics, acne medications, anti- inflammatory and antifungal products regarding royalty-based licensing agreements. The Hydron technology is essentially based on hydrophilic polymers that have been "the technological basis for soft contact lenses" for the last 30 years, the firm explained. Dento-Med said it subsequently developed a Hydron emulsification process that allows the incorporation of hydrophilic polymers in topical creams and lotions. Dento-Med's 1992 annual report explains that the company "does not have the financial resources to sustain a national advertising campaign to market its products" and "has chosen to enter into marketing, licensing and distribution agreements with third parties which have greater financial resources and can enhance Dento-Med's product introductions with appropriate national marketing support programs." Currently based in Boca Raton, Fla., Dento-Med was founded in 1948 in New York. In 1992, the company reported sales of $ 168,833 and a net loss of $ 1.34 mil. The company has not been profitable in recent years and its operations currently are being funded from a number of financial transactions that have raised over $ 4 mil. since 1991. In 1991, the company raised over $ 2.5 mil. from a private placement stock offering and another $ 738,000 raised from the sale of National Patent Development Corp. stock. Since then, Dento-Med has raised another $ 830,000 from three additional stock deals. In addition to seeking strategic partners for the Hydron delivery system, Dento-Med also has a line of H&BA products in various stages of development that are based on the Hydron technology. Products already developed, but not yet marketed, include a plaque-inhibiting mouthwash, a denture adhesive, a denture freshener spray, and an "environmentally friendly" insect repellent, the company said. Further back in the development process is an antiperspirant, acid-resistant baby lotion, and a lip balm. Dento-Med said it would make these products available for licensing but also is thinking about marketing the OTCs on its own. The company is preparing for an October launch of its Hydron Plus skin care line, the first consumer products to be nationally marketed by Dento-Med. The line consists of: Waterproof Sportscreen SPF 30; Streak- Free Sunless Bronzer with moisturizers and UV protectants in "normal" and "dark tan" formulas; Moisture Balancing Facial Cleanser; Micro-Exfoliating Facial Scrub; Botanical Toner & Refreshening Hydro-Gel; Best Defense Activating Hand and Body Moisturizer; Environmental Protection Moisturizer Daytime Facial Formula with SPF 15; Natural Moisture Balance Restorative Nighttime Facial Formula; and Tender Eye Lift. One product in the line, the Best Defense Hand and Body Moisturizer, has already been marketed alone on the QVC network and, according to the firm, sold out during its first appearance on the channel one month ago. The moisturizer is slated for a second QVC appearance on June 16-17. In February, Dento-Med began test marketing Best Defense in 100-200 chain drug stores nationwide at a suggested retail price of $ 8-9 for an 8 ounce bottle. However, the test marketing was suspended after QVC agreed to showcase the product, Dento-Med said. Reflecting the company's increasing focus on consumer products based on the Hydron technology, Dento-Med's board of directors adopted a resolution to change the name of the firm to Hydron Technologies. The name is subject to shareholder approval at Dento-Med's annual meeting on July 29. Aside from its consumer products activities, Dento-Med also sells professional denture materials to the dental community. Under a royalty-based agreement, National Patent Development Corp. is developing products for internal use that are based on Hydron polymers, such as drug delivery implants and other prescription drugs. Dento-Med and National Patent share ownership of patents covering the Hydron technology following a 1989 settlement of a lawsuit.

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