Market Analysis

General:
Total home health kit sales have reached an estimated $680 million dollars in 1994. This represents an increase of approximately 52% in sales from 1991. Blood glucose meters and test strips alone make up more than 50% of expenditures in the home health test kit market.


% Market Share For Glucose Test Strips(United States)

According to Towne-Oller & Associates the best selling test strip in 1994 was Lifescan's Lifescan Brand (One Touch) with 39.7% market share. The second largest share belongs Boehringer Manheimer's (Chemstrip) with 14.9%, followed by Miles laboratories (Glucofilm) with 9.6% market share. These figures come from distribution center figures among Towne-Oller reporting retailers.

Source: Chain Drug Review, November 21, 1994 prx20


Specific Companies:

Medisense Inc. (makers of ExacTech) pioneered biosensor technology in blood-glucose monitoring, making units that were faster and smaller than was previously possible. The company, founded in 1981, earns most of its revenue from the disposable test strips needed for the meters. In addition to home glucose meters, Medisense also produces units for hospital use. Based in Boston, the company also markets test units outside the U.S.
Headquarters: 266 Second Ave., Waltham, MA 02154
Phone: 617-895-6000
Fax: 617-895-6161
URL: http://process.ocm.com/selfcare/medisens.htm

Company Officers
Chairman: Richard C. E. Morgan, age 50
President and CEO: Robert L. Coleman, age 49, $426,603 pay
EVP and COO: James W. Duncan, age 54
Corporate VP and CFO: John H. Chiricotti, age 47, $276,122 pay
Corporate VP Sales and Marketing: George O. Joseph, age 56, $273,137 pay
Corporate VP Operations: Geoffrey H. Jenkins, age 43, $249,909 pay
Corporate VP Research and Development: Donald L. Pieper, age 53, $107,963 pay
Corporate Controller and Treasurer: Gerald J. Bojas, age 58
Director Human Resources: Larraine L. Levine
Auditors: Arthur Andersen & Co, SC Operations

Products
Companion 2 (in-home blood-glucose monitoring system)
ExacTech (in-home blood-glucose monitoring system)
Precision Q I D (blood-glucose monitoring meter)
satellite G (portable blood-glucose monitoring system)
SensorLink (portable data retrieval system)

LifeScan (makers of One Touch) was purchased by Johnson & Johnson in 1986. Johnson & Johnson consists of more than 160 companies, marketing health care products in more than 175 countries. Company products range from baby care, first aid and hospital products to prescription pharmaceuticals, diagnostics and products relating to family planning, dermatology and feminine hygiene. New products launched in 1995 included LifeScanĘs palm-sized ONE TOUCH PROFILE System, which functions as an automatic log book, reducing the need for users to manually record information about their blood glucose readings.

Financial information for the company from 1994 appear below:
SalesOperating Income
$ mil. % of total $ mil. % of total
US 7,812 50 1,534 52
Europe 4,504 28 1,050 35
Africa & Asia/Pacific 1,907 12 198 7
Canada & Latin America 1,511 10 173 6
Adjustments - - (274) -
Total 15,734 100 2,681 100

Headquarters: One Johnson & Johnson Plaza, New Brunswick, NJ 08933
Phone: 908-524-0400
Fax: 908-214-0332
URL: http://www.jnj.com
Company Officers

Chairman and CEO: Ralph S. Larsen, age 56, $1,506,714 pay
VC: Robert N. Wilson, age 54, $1,178,967 pay
Corporate VP: Frank H. Barker
Chairman, Pharmaceutical and Diagnostics Group: Ronald G. Gelbman, age 47
VP Finance and CFO: Clark H. Johnson, age 59, $642,087 pay
VP Science and Technology: Robert Z. Gussin
VP and General Counsel: George S. Frazza, age 61
VP Administration (Personnel): Roger S. Fine, age 52
Auditors: Coopers & Lybrand L.L.P.
The above information was obtained from company Web sites, product information inserts, and the Wall Street Journal's web site.

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