October 24, 2017
The Company sources and distributes clinical trial, biologic and specialty drugs to pharmaceutical and biotech companies. Its customer base consists of about 285 major companies in the U.S. and abroad in the branded, generic, biotech and pharmaceutical industries. Customers include virtually all major generic drug manufacturers.
The Company has a distinct competitive advantage in a segment where customer confidentiality is key and multiple lots with different expiration dates are required to successfully perform clinical trials. Its 15 vendors have access to manifold suppliers of their own, including distributors, specialty pharmacy relationships and wholesalers. The supply chain can source as far down as the retail level, with access to almost 500 drug depots/pharmacies if necessary.
This is a remarkably efficient and lean operation with only 11 employees in addition to the two active partners. Both partners are amenable to continue working at the Company indefinitely, or as long as necessary to ensure a smooth transition and transfer of know-how.
Average top-line revenue from 2007 through 2016 totaled approximately $34 million. Management has made the choice to selectively accept very large orders in order to comfortably operate within its existing line-of-credit. Management believes that with a larger credit line the Company could generate over $30 million-$40 million annually in additional sales by bidding on more large orders.