Selling into any market with a large bureaucracy is a daunting and sometime frustrating task. Regulations and approvals seem to be waiting at every turn as a product wends its way through the process. If, however, a company can make it through the morass, a very shiny pot of gold can be waiting on the other side. Finding a company that has made it to the other side is a sure way to make a tidy profit.
Derma Sciences Inc., a fully integrated manufacturer, marketer and supplier of wound and burn care products, works to develop and market products that are a “next step” in wound and burn care treatment. The company has been having great success of late with the signing of several large-scale supply agreements.
Announced July 28, 2008, the company has entered into a two-year distribution agreement with Novation, a leading health care contracting company, for its MEDIHONEY product line. In and of itself, a distribution agreement in the health care field is a great accomplishment for a medical products manufacturer. An agreement with a company that serves VHA Inc. –a 2,500 member group – and the College University Healthcare Consortium – 13,000 members- is another success story all to itself. Add to this agreement two other similar agreements, and the company has a solid base for its leading MEDIHONEY care product. Although it is not known whether the company’s other products are connected with the MEDIHONEY (Novation) agreement, their association with the company can only be considered a positive.
The company has been following a solid business development plan over the last seven years or so. It understands the requirements of selling into the $4.3-billion worth of targeted markets it has targeted. In this regard, it has moved high volume product manufacturing to China and continues to search for acquisitions that will support its core mission.
The company is all too aware that providing a superior product to its markets is only half the process. Costs and inventory control require constant supervision if the company is to grow its already solid customer base. The company follows a strategy to address these issues and applies the same rigor to its overall operations. As the medical establishment continues to seek ways of making itself more economically viable, Derma Sciences is there to provide assistance while profiting along the way.
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