Prestige sales fall due to recall, diversion
“During Q2, we uncovered diversion behavior by a small number of our international customers,” reported Mark Pettie, Prestige chairman and chief executive officer. “We immediately stopped sales to these customers and took other steps that make us confident that we have eradicated this behavior. However, the short-term result of this necessary action was an 18 percent decline in Q2 in international revenues versus [the year-ago period].”
Prestige also reviewed its pricing lists to help prevent the cost differentials between markets that entice diverters. “We reviewed our price list across our entire customer base to make sure that there were no longer opportunities out there for this situation to present itself in other parts of the geography. It was isolated primarily to the Caribbean.”
Pettie said that despite this setback, the company would still focus on international growth opportunities.
Prestige’s net revenues for the second fiscal quarter ended Sept. 30 were $87.3 million, 3 percent higher than net revenues in the prior year comparable period. Net revenues for the quarter would have been 4 percent higher, and organic sales for the quarter would have been 2 percent higher than the prior-year quarter were it not for the industry-wide voluntary withdrawal of infant cough-cold products, in which the company participated. Accordingly, Prestige increased its allowance for estimated returns by $1.1 million and its allowance for obsolescence by $0.8 million to reflect the two withdrawn items.
However, the recall of cough-cold products for toddlers under age 2 has not impacted the overall kids cough-cold market, Pettie said. “No. Absolutely not. Consumption of [other Little Remedies] products is staying exactly where we projected it at this point,” he said. “We will continue to monitor that as this unfolds. You can expect that media coverage of this will ebb and flow as the FDA goes through its longer-term deliberations.”
The discussion for the FDA now will focus on what happens with medicines marketed to children between the ages of 2 and 6, Pettie said. “If [the FDA] continues to allow [the industry] to market products to that segment, [Prestige] is ramped up and ready to go with our re-entry strategy. But it is probably going to be after this year’s cough-cold season before that ruling comes down.”
Prestige also reported that retailers have been slow to build inventory entering the cough-cold season. “After two consecutive soft cough-cold seasons, many of our retailers appear to be shifting toward a more consumption-based ordering pattern,” Pettie said. “We welcome that in some regards because it helps our supply chain as well.”
Looking forward, Prestige plans to grow its Chloraseptic brand beyond sore throat indications. “There is ample consumer evidence that we can push out beyond those [indications], so we are focusing on [new] items that would move Chloraseptic beyond its core heritage and at the same time build scale behind that very important brand.”
Stick Me Designs adds style to glucose meter bags
VIRGINIA BEACH, Va. Stick Me Designs, an emerging accessory designer of diabetes glucose carrying cases for women, teens and children, announced the launch of their glucose meter bag collection Friday.
“While the medical supply industry is busy working on adding color, convenience and function to their meters, they’ve forgotten the most important aspect of their portability—the carrying case,” stated Rickina Velte, founder of Stick Me Designs. “We’ve taken on the task of infusing design, style and function that adds personality to an everyday necessity for people with diabetes.”
The new diabetes bags offer choices in color, fabrics, design and functionality.
The first collection features four contemporary designs created for the One Touch Ultra glucose meter and other more traditional larger-style testing meters. The bags have elastic placeholders for lancet devices, testing strips and glucose tabs or candy. They also feature interior open and zippered pockets for such everyday essentials as credit cards, identification, money, sanitizing wipes and an outside zipper pocket for other essentials.
Stick Me Designs’ introductory collection also features hand-selected faux suedes, designer upholsteries and cotton fabrics in retro and contemporary styles and colors.
Suggested retail prices will range from $32.99 to $45.99, the company reported.
Continucare opens first clinic at Navarro
MIAMI Continucare Corp. has announced the opening of its first ValuClinic in-store health clinic within a Navarro Discount Pharmacy in Hollywood, Fla.
Similar to many other retail-based clinic models, the walk-in clinic will treat acute conditions and will be staffed by nurse practitioners and physician assistants.
According to Gabe Navarro, chief executive officer of the Miami-based pharmacy chain, Continucare was on the verge of opening a few locations in the recently acquired Sedano’s stores, so Navarro proceeded with the openings.
In October, it was announced that Navarro Discount Pharmacy would merge its operations with Sedano’s Pharmacy & Discount Store. Sedano’s is a Hispanic drug retail company with 11 pharmacies in the southern Florida market. Combined, the entity has more than 30 stores with annual revenues of more than $350 million. All of the stores are operating under the Navarro banner in the southern Florida market.
According to Navarro, plans call for Continucare to have three ValuClinics open in Navarro stores by the end of the year. It expects to have a total of 15 clinics in operation in 2008.
In late 2006 it was announced that Navarro had partnered with Express Clinics to introduce in-store health clinics to the southern Florida market; however, it is possible that partnership will come to an end.
“It is uncertain whether Express Clinics will continue to operate clinics in our stores,” Navarro told Drug Store News. “[We] should know more in the coming weeks.”