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Columbia Labs

This article was originally published in The Tan Sheet

Executive Summary

Approximately 50-65 sales reps to be hired within next six months to detail vaginal pH reducer Miphil, Advantage-S spermicide to OB/GYNS. OTC products will be renamed, repositioned to professional audiences, firm says during analysts' call Aug. 9. Columbia hopes to finalize agreement "with a consumer products company which will assist in marketing these products in the OTC arena" within next few months. Q2 net revenues fell 84% to $427,554, with firm attributing decrease partly to "absence of revenues" from OTC brands sold to Lil' Drugstore Products last year (1"The Tan Sheet" April 24, 2000, In Brief)

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Company moves forward in its attempt to shed its OTC marketing presence by signing an agreement with Lil' Drugstore Products. Under the deal, Lil' Drugstore is purchasing the Replens and Diasorb brands and acquiring the U.S. licensing and trademark rights to Legatrin and Vaporizer in a Bottle for "$4.5 mil. plus existing inventory on closing, a royalty stream in excess of $1 mil. annually," Columbia announces April 20. Lil' Drugstore will have the option to buy full rights to the latter two brands for "several million dollars." Proceeds from the sales will be used to focus on Columbia's Rx offerings. The firm is retaining the OTC Advantage-S spermicide as well as its vaginal pH reducer Miphil

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