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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: DanZ who wrote (2714)	8/1/1999 8:44:00 PM
From: Druss	Read Replies (2) \| Respond to of 10293

Dan--<<GumTech's entry into the nicotine gum market is one of their top priorities. Smith-Kline Beecham dominates this market but their patent ran out a couple of months ago. GumTech is in the process of submitting an ANDA to the FDA so they can make a generic form of nicotine gum for the domestic market. They are also in discussions to make nicotine gum for foreign distribution, and this does not require an FDA approved ANDA. The nicotine gum market is estimated at about $800 million and grew at a rate of roughly 65% in the first quarter of 1999.>> This particular aspect of GUMM may be a weak sister at best. Historically when a patent expires the generic companies do not reap large profits at all. The competition moves in with a vengence and I would expect this to happen in this case. For example Rite Aid (previously Thrifty Drug store) in the West offers in house generic versions of many drugs. Nicotine based gum seems a natural for them and other large pharmacies. The total value of the market for nicotine based gum may actually shrink as competition forces down the price. I would expect GUMM to run into significant competition and even lower priced competition from in house brands stocked right next to them in larger pharmacies. Margins may be very small and market entry may be tough. All the Best Druss