Acura completes Nexafed transition to MainPointe with new formulation on horizon
PALATINE, Ill. — Acura Pharmaceuticals on Monday reported the completed transition of Nexafed and Nexafed Sinus to MainPointe Pharmaceuticals as that company commences selling activities with a new formulation coming to market soon.
"Consistent with our strategy to secure licensing partners to commercialize our product technologies, in March the company licensed Nexafed and Nexafed Sinus to MainPointe Pharmaceuticals and recorded license fee revenue of $2.5 million," Peter Clemens, SVP and CFO Acura, told analysts earlier this week. "We expect the sales to grow significantly over current levels as MainPointe brings their commercial expertise to bear to penetrate the pharmacy market."
MainPointe will be bringing to market Nexafed 2.0, added Bob Jones, Acura president and CEO. "We have completed manufacturing validation for Nexafed with our [microparticle] 2.0 formulation," he said. "The output from these batches has been transferred to MainPointe and is available for sale. We expect MainPointe will introduce Nexafed 2.0 to the market in this the third quarter."
"Conversion of pseudoephedrine products into methamphetamine remains an acute problem in many communities," John Schutte, MainPointe chairman and CEO, noted earlier this year in acquiring the rights to market Nexafed. "The Nexafed products have proven to be a success in curbing this costly problem and we look forward to driving this business forward."
Kline: Rx-to-OTC switch becoming more selective
PARSIPPANY, N.J. — Companies are being more selective in the Rx-to-OTC switches they pursue, Kline & Company reported in its latest research, the 13th study in its syndicated series, "Rx-to-OTC Switch Forecasts USA: Next Frontier."
According to Kline, future switches will depend on a combination of market-driven forces and safety, as determined by regulators. These switches will be characterized by the sponsor needing to overcome safety concerns with well-designed and well-executed trials that prove consumers can safely use the medication without the intervention of a healthcare professional.
Outlined in the Kline report, some of the categories with the greatest switch potential include benign prostatic hyperplasia, erectile dysfunction, migraine, overactive bladder and sleeping aids.
7 factors changing the OTC e-commerce business
The OTC e-commerce channel is the 900-lb. gorilla in the traditional domestic and global retail worlds. A U.S. brand owner is now confronted with a global pricing discipline challenge. The speed and ubiquity of product pricing and information has forced the issue. To paraphrase Hermione in “Harry Potter,” everything has changed.
In 300 BCE, Greek astronomers proved that the earth was round. This is the old retail world. Today’s digital era has enabled customers and consumers to make it flat again with ongoing implications: “Product” has a broader definition. Speed to market and pricing discipline are not optional.
- Products are sold differently now. Consumers seek health or beauty solutions that combine products, information and tools that solve bigger challenges. Products are increasingly part of a broader solution. This requires internal cooperation and alignment. Selling just a product will inevitably lead to being treated like a commodity.
- Product goes somewhere. U.S. sales organizations inside a company with global aspirations can no longer dump or close out product by shipping it to an unknown destination via a potentially less-than-reputable wholesaler. Price points and expectations are being set in important future markets. This practice can be especially tough to break, as annual plans are set on last year’s numbers. It’s a vicious cycle. When negotiating in Korea or China, e-commerce pricing (and therefore the entire value chain) usually come up in the first 30 minutes. Lowered margins leave no room for formal launch marketing budgets.
- The consumer and customer have leverage. Digital technology enables product research, exploration of alternatives and real-time interaction with similar customers previously not available. The unfettered digital world is real. Chinese consumers get their U.S. product information from Alibaba’s Taobao or TMall.
- Speed (or the lack of it) can kill. Product differentiation and functionality can be copied. New offerings and competitors come to market quicker. When bird flu hit Asian markets, there were 40-50 new instant hand sanitizer brands within weeks.
- Legacy business models are a problem. Existing business models — organization structure, skills, processes and culture — are built for an environment that is disappearing. Delivering superior cross-functional, customer solutions wrapped in customer experience wins, but the functional silo company isn’t wired to deliver that. Brand owners that re-wire themselves by horizontally encouraging and incentivizing cross-functional interaction will survive and thrive. Mindset is everything. Walmart has a strategy to combat Amazon with the Jet platform. Major drug chains like Walgreens and CVS Pharmacy lag in this area.
- New business models are a problem. Amazon Dash has created an automatic replenishment solution for customers requiring little active involvement. This impacts the entire distribution chain: reduced pricing flexibility, distributors and transportation providers cut out and ultimately, retailers eliminated.
- New competitors are born agile. Digital startups do not have legacy systems and are formed around agile passionate cross-functional teams. They are lean, low-cost and productive TODAY. Meanwhile, legacy companies must deal with entrenched organizational interests that resist change, especially when jobs are threatened. They move slowly, extremely slowly if at all. RIP Sears.
Culture is a precursor to digital transformation and requires senior leadership. Everything has indeed changed. Who thought the world could be so flat?
Ed Rowland, is a Drug Store News contributing editor covering global issues. As the principal of Rowland Global, he believes in the promise of global business and supports companies in their strategy, tactics and execution of international growth initiatives. He thanks fellow Executive Forum members Mike Prebenda and Ed Cannon for permitting borrowing from previously co-authored digital articles.