To: Madeleine Harrison who wrote (715 ) 7/21/1999 10:43:00 AM From: Bo Didley Read Replies (1) | Respond to of 5582
GUMM - their products GUMM is the leader in 'functional chewing gums' meaning gums for special uses. gum-tech.com This last January, they announced a new product called ZICAM -Cold Remedy. zicam.com it is a jointventure, 60% owned by GUMM. This is an amazing product. I've used it and works. Clinicals are being done at two major universities that will back up the findings in the first study. This will allow them to be more specific on the packaging saying it reduces the common cold to 1-3 days. It will be in 35,000-50,000 stores for this cold season. Walmart will have it in 3 sections of the store. The largest grocery store chains in the US have already placed their orders. Here is some math: Zicam wholesales for $7.95 a bottle. After all is said and done, GUMM's net profit is around $1.80. Excellent! $1.80 multiplied by # colds...hmmmm The US OTC cold market is a $3 billion industry. No one can make the claims as ZICAM does on reducing the cold, so it will be a big seller. GUMM has small shares outstanding, so this will really impact the bottom line. Year after year, they will penetrate the $3 billion market further because word will get around that it is the best treatment. They have already had requests to go international but right now all there efforts are US based.biz.yahoo.com When the clinicals are released in a Scientific Journal, I anticipate a large spike upwards. The common cold is ubiquious to everyone. An otc med that reduces it to 1-3 days has appeal. Plus, the product is already on the shelves for people to buy for around $10.50. Another development: Generic Nicorette GUM. This is a big money maker for SmithKline Beecham proprietary product. GUMM has submitted an ANDA to the FDA to produce the generic form and this will be huge. Last quarter, SBH made $183 million off their gum. GUMM will be entering this market. This is not a daytrade, imo. bo