Swiss Medica to launch new US distribution channel

Canadian firm Swiss Medica says that it will launch a new distribution strategy in the USA focused on direct-to-consumer selling and distribution via medical professionals. In addition, Swiss Medica has decided to strategically exit the working capital-intensive USA national pharmacy channel that caused the bulk of the firm's recent operational and financial difficulties.

Swiss Medica launched O24 Pain Neutralizer and O24 Fibromyalgia in 2005 in national pharmacy chains in the USA, after a similar successful introduction in Canada. The firm made a large investment in upfront inventory for the retailers in advance of the launch, spent several millions dollars on radio and other mainstream marketing in the USA and carried receivables from pharmacies for six months plus in most cases. Swiss Medica says its unsuccessful experience with US retailers was due to:

- mainstream short-form radio marketing that could not differentiate O24's superior efficacy and science from its competitors;