"You must have a strong online presence to succeed in today’s marketplace. The consumer continues to trend towards self-care and OTC brands are well positioned in this environment."
What was the motivation for establishing Advantice?
RoundTable Healthcare Partners has been very active in the healthcare space since its conception. The executives and the operating partners all have backgrounds in healthcare. They understand the nuances of the industry and what it takes to drive growth and profitability. They were active in other parts of life sciences such as contract manufacturing and durable medical equipment. Moberg Pharma AB decided to shed their OTC business and focus on developing a prescription drug, which created the acquisition opportunity for RoundTable. It was a perfect opportunity for RoundTable to make the investment in an OTC platform focused on health and wellness brands. Advantice Health was thus formed and we are focused on building the Kerasal®, New-Skin®, Dermoplast® and Domeboro® brands.
Can you give us a run down of your product line and explain the focus?
Our mission statement is to help consumers look and feel better through superior health care solutions. We have well recognized brands that people are familiar with and we believe that, with some innovation, we can expand these brands into other relevant segments. We are looking at them with fresh eyes and studying the marketing opportunities from an innovation perspective. We want to expand these brands organically through increased investment and improved marketing campaigns as well as new product innovation.
Are you looking to diversify the product offering and how do you balance in-house development with brand acquisitions?
First and foremost, we are focused on building the brands we have today. We want to become a world class acquirer and builder of health and wellness brands. We are constantly looking for good add-on acquisitions that would complement our existing portfolio.
Would growing organically require a lot more resources?
Yes, for that reason we are looking for partners in that area. We are talking with existing and potentially new partners that have research capabilities and can us down that organic path. That is why CPhI is so important to us. It brings us closer to potential partnerships. In some of these conferences we are able to meet with new companies that we were not aware of and brainstorm new ideas.
What have been the biggest challenges in terms of starting Advantice Health and becoming successful?
Building the culture of a company into a high-performance team is our biggest priority. We believe that culture drives business results. We are through the integration process with the prior owner and have built systems and processes that we can scale and add on additional brands.
Which brands are the fastest growing at the moment?
Kerasal has been our biggest growth driver over the past year. It is a reflection of the fact that consumers want to look better and take care of themselves. Foot care is an area where there is large potential if consumers are made aware of the offerings. It is a small percentage of household penetration and we know the incidence rates are higher. Also, our incremental investments in New-Skin paid off this past year, growing our share in an establish category.
What is your opinion on why consumers are more involved in choosing OTC products?
It is mainly because consumers are trying to take more charge of their health care decisions. Consumers have information at their fingertips. They are looking for solutions to common problems that they understand. That is one reason why one of our fastest growing segments is online through Amazon. You must have a strong online presence to succeed in today’s marketplace. The consumer continues to trend towards self-care and OTC brands are well positioned in this environment.
What are some goals you would like to achieve at Advantice over the next two years?
One is organizational; we want to put together the best team possible and fill the organization with great people that share our vision. Second, making sure we have a strategy to grow our current brands and find ways to continue to grow market share. Third, we want to consistently bring product innovation to help consumers find better ways to take care of themselves.