Purchase
of Lafayette Pharmacal By Alcon Laboratories
A Marketing Assessment
report of Pantopaque sales 1976-1977 conducted by Alcon Laboratories
had sales of Pantopaque accounting for 82% of Lafayette product
sales. Phone interviews conducted with radiologists confirmed
that Pantopaque was the only contrast medium currently being used
for myelography. (46)
Two radiologist
interviewees mentioned a new aqueous preparation on the horizon
that was under investigation but that had yet to be released by
the FDA.
In terms of amount
of Pantopaque used for myelography, the 3 cc ampules had been
losing sales ground to the more recently introduced 6 cc and 12
cc ampules.
Sales by Lafayette
Pharmacal were to the major distributors such as Picker, G.E.,
Litton and are 50% of the list price. According to Mr. Griggs
of Lafayette, Picker sales accounted for 50% of the product sales.
Using extrapolation, Picker had purchased $1,750,000 of Pantopaque
which it would have sold for $3,500,000.
Since Lafayette
personnel did not actively sell Pantopaque to radiologists, a
gradual approach to phasing out Pantopaque distributors could
potentially permit Alcon to convert most of the business to direct
sales through LPI within 2 years. There was also a statement that
there appears to be a certain amount of receptivity medically
to an aqueous product which is still under investigation.
Regarding the
assessment of the potential impact of the availability of water
soluble contrast medium:
“It may
never be approved by FDA but, if it is, it could nibble into our
100% marketplace position.”
The assessment
concluded:
"On balance....no
marketing considerations have presented themselves to preclude
our moving forward on the acquisition. We will not double sales
in one year by cutting out distributors quickly, but we do have
much room to maneuver company sales to a substantially higher
level within 2-3 years.”
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