May 28, 2007
Furry pharma | On the heels of giants like Pfizer and Merck, Jean Hoffman launches a generic pharmaceuticals business aimed at pets
By Sara Donnelly
The robust American pet products industry includes a growing market for pet medications ˆ those life-lengthening pills that keep man's best friend healthy and happy. The popularity of the pet pharmaceutical market is undeniable: According to the international research firm Ipsos, Americans spend $3 billion annually on medicine for pets. And pet medicine profits are up more than 50% over the past five years, according to Business Week magazine. Major human pharma companies like Pfizer, Merck & Co. and Eli Lilly & Co. have heeled lately to the pet pharma whistle, launching medications for animals suffering from everything from depression to diabetes and, in the case of Eli Lilly, even a separate pet health unit.
Sadly, as we humans have long known, health doesn't come cheap. For example, Pfizer's obesity drug, Slentrol, costs owners roughly as much as two dollars a day, and most pet owners don't have health insurance for their animals.
That's why Jean Hoffman plans to base her business on pet generics.
In March 2006, Hoffman launched Putney Vet, a pharmaceutical company that will serve the roughly 17,000 companion-animal-exclusive veterinarians (those who treat only dogs, cats and horses) in the United States. Putney Vet, based in Portland's Old Port, will develop generic pet prescription meds, priced at what Hoffman says will be "considerably less" than the going rate for brand-name prescriptions.
In March, Putney launched its first pet drug, a generic version of the antibiotic Cefpodoxime Proxetil. But that's just the beginning: Hoffman says Putney's expansion will be "rapid," and that the company will introduce three or four new generic drugs to the market over the next year, and more than a dozen drugs before 2012.
Hoffman, a 20-year pharmaceutical industry veteran, is guarded when it comes to details about Putney. But she will talk about her five-year plan, which includes expanding her current staff of five to up to 10 employees by the end of 2007, and to around 50 full-timers by 2012. She expects Putney will generate sales of about $100 million over the next five years. The company is based in Portland because Hoffman and her two children live on nearby Peaks Island, but Hoffman plans to open a second office within the year in New Jersey, which has the country's highest concentration of pharmaceutical companies.
Of course, Hoffman won't say exactly where this New Jersey office will be located, or when exactly its doors will open, but she does concede attracting experienced pharma folks to Portland may be one of her biggest obstacles. "I knew in founding this company that it would be challenging to get the kind of people we need from the pharmaceutical industry to Maine," says Hoffman. "So we're focusing on building a great working environment."
Hoffman says her work with companies like Switzerland's Zuellig Group and her own Q Street Advisors, a consulting firm for the pharmaceutical market, has allowed her to develop relationships with major pharmaceutical developers, distributors and manufacturers around the world, connections she plans to use to her advantage as Putney grows. Putney Vet's primary focus is to develop generic alternatives to major brand-name medicines ˆ the largest market, Hoffman says, is in flea and tick prevention ˆ and then contract with a manufacturer to make the drug. Putney will then market and distribute its generics directly to veterinarians because vets, unlike human doctors, both prescribe and sell medications.
"We feel that generics offer veterinarians the opportunity to lower their costs, get the same if not higher quality product, and also offer lower cost drugs to pet owners who don't have insurance," Hoffman says.
Sadly, as we humans have long known, health doesn't come cheap. For example, Pfizer's obesity drug, Slentrol, costs owners roughly as much as two dollars a day, and most pet owners don't have health insurance for their animals.
That's why Jean Hoffman plans to base her business on pet generics.
In March 2006, Hoffman launched Putney Vet, a pharmaceutical company that will serve the roughly 17,000 companion-animal-exclusive veterinarians (those who treat only dogs, cats and horses) in the United States. Putney Vet, based in Portland's Old Port, will develop generic pet prescription meds, priced at what Hoffman says will be "considerably less" than the going rate for brand-name prescriptions.
In March, Putney launched its first pet drug, a generic version of the antibiotic Cefpodoxime Proxetil. But that's just the beginning: Hoffman says Putney's expansion will be "rapid," and that the company will introduce three or four new generic drugs to the market over the next year, and more than a dozen drugs before 2012.
Hoffman, a 20-year pharmaceutical industry veteran, is guarded when it comes to details about Putney. But she will talk about her five-year plan, which includes expanding her current staff of five to up to 10 employees by the end of 2007, and to around 50 full-timers by 2012. She expects Putney will generate sales of about $100 million over the next five years. The company is based in Portland because Hoffman and her two children live on nearby Peaks Island, but Hoffman plans to open a second office within the year in New Jersey, which has the country's highest concentration of pharmaceutical companies.
Of course, Hoffman won't say exactly where this New Jersey office will be located, or when exactly its doors will open, but she does concede attracting experienced pharma folks to Portland may be one of her biggest obstacles. "I knew in founding this company that it would be challenging to get the kind of people we need from the pharmaceutical industry to Maine," says Hoffman. "So we're focusing on building a great working environment."
Hoffman says her work with companies like Switzerland's Zuellig Group and her own Q Street Advisors, a consulting firm for the pharmaceutical market, has allowed her to develop relationships with major pharmaceutical developers, distributors and manufacturers around the world, connections she plans to use to her advantage as Putney grows. Putney Vet's primary focus is to develop generic alternatives to major brand-name medicines ˆ the largest market, Hoffman says, is in flea and tick prevention ˆ and then contract with a manufacturer to make the drug. Putney will then market and distribute its generics directly to veterinarians because vets, unlike human doctors, both prescribe and sell medications.
"We feel that generics offer veterinarians the opportunity to lower their costs, get the same if not higher quality product, and also offer lower cost drugs to pet owners who don't have insurance," Hoffman says.
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