Mission Pharmacal buys Dr. Smith's Diaper Ointment
San Antonio-based Mission Pharmacal acquired the brand from Beta Dermaceuticals Inc., a privately held company also based in San Antonio. Dr. Forrest Smith developed the diaper ointment in partnership with two pharmacists, Marty Rubin and Erv Batha, and sold the product for almost 30 years through Royal Pharmacy.
The three then formed Esrubar LP to sell Dr. Smith’s Diaper Ointment nationally, and Beta Dermaceuticals has marketed the product since the early 1990’s. Esrubar’s agreement with Mission Pharmacal also includes the rights to Dr. Smith’s Rash-n-All Ointment, another treatment for skin rashes.
“We are proud of having grown the Dr. Smith’s brand from its infancy and building distribution to the national level,” John Rangel, chief executive officer of Beta Dermaceuticals, said in a company release. “With its strong brand-building heritage and San Antonio roots, Mission Pharmacal provides a solid home for Dr. Smith’s next phase of growth.”
Mission Pharmacal develops and manufactures a range of prescription and over-the-counter treatments, primarily geared toward the female market. Its portfolio includes prenatal vitamin CitraNatal Assure, anemia treatment Ferralet 90, and bacterial vaginosis and STD treatment Tindamax.
Walsdorf said that Beta Dermaceuticals did a good job of making Dr. Smith’s Diaper Ointment as a multi-regional item, and now Mission Pharmacal’s focus is on taking the brand national.
“This is a really linear acquisition, so it’s not much of a challenge,” he said. “We’re noted in women’s health care and we’re big in prenatal and postnatal, so this fits beautifully into our portfolio.”
Walsdorf said that Mission Pharmacal markets primarily to health care professionals, who in turn spread the message to consumers.
“We’re going to beef up our ability to reach health care professionals, pharmacists and pediatricians, and we will be beefing up our sales force and marketing activities,” he said, adding that a direct-to-consumer effort may also be in the works.
He added that the company’s marketing is created through a combination of in-house and external collaboration, and said that there’s “no such thing as a bad idea.”
“We have some very strong marketers in the company as well as a lot of partners. As we need help, assistance or a bright idea, we’re not too proud to accept it,” Walsdorf said.
Mission Pharmacal will be growing both organically and through acquisitions, Walsdorf said.
“We’re like a miniature (Eli) Lilly or Merck. We might not be as big, but we certainly have our strengths and a fully vertical system to move forward organically,” he said. “We have a lot of patents on molecules and delivery systems, and we might be able to bring out some very clever line extenders and other things in the future.”
Walsdorf told WinmoEdge that Mission Pharmacal works with Dallas-based Moroch for some of its marketing needs.
Walsdorf is an energetic and friendly executive who said that the company welcomes great ideas, and strategic partnerships geared toward a female audience – particularly new or expectant mothers – may be of interest to the company. He said that his administrative assistant Barbara Keelan is his “right hand” and fields most of his e-mails, so it may be prudent to make introductions to the executive office gatekeeper.