| Securing Contracts for Success |
| Healthcare Products | |
| By Hanna Aronovich | |
| Wednesday, 31 August 2005 | |
 While continuing to focus on its allergy products, HollisterStier is growing. Today, HollisterStier provides a complete range of services to support the pharmaceutical and biopharmaceutical industries. The company is a leading manufacturer of allergenic extracts, targeted primarily at treating allergies and asthma. HollisterStier is also a recognized contract manufacturer of sterile injectable vials and lyophilized products. HollisterStier was founded in 1921 by physician Dr. Robert Stier and biochemist Guy Hollister. CEO Anthony Bonanzino says the two were “innovators in the development of allergy injections.” In the following years, HollisterStier had several changes in ownership. However, in 1999, Bonanzino says, the turning point came. HollisterStier was acquired by a small group of investors, which led to the company's diversification. “The HollisterStier name is an icon in the allergy industry,” Bonanzino explains. “It has been around for so long, and is very well respected. With the 1999 acquisition, we decided it was time to diversify the business. Not only would we continue the allergy product line, but also become a contract manufacturer of sterile, injectable pharmaceuticals. “The company has wonderful competencies and great assets,” he continues. “We felt strongly that we could be successful in the contract manufacturing business.” The contract manufacturing business began to take off in 2001, and Bonanzino says it continues to grow and expand. Although HollisterStier has seen post-acquisition success, redefining the corporate culture was a challenge. Bonanzino says under its previous ownership, HollisterStier was managed by a large, multinational corporation. “It was a very cold environment,” he explains. “People were not at the forefront of the company's priorities, and we had a vision of getting back to some basic practices that make HollisterStier a good place to work.” The company implemented an “ambitious strategy” to engage all employees in the activities and decision-making process, Bonanzino says. He calls it a classic turnaround, with visible results one year later. “After 15 years of being managed exclusively from top-to-bottom, a 'do-as-I-say' approach, we began asking people on the production line, 'What do you think?'” Bonanzino explains. “It was an undertaking, but once a few people started to participate, it was a snowball effect. We successfully changed our culture from an autocratic style to one of respecting each other at every level.” Continuous Innovation At the time of the acquisition, allergy products were 100 percent of HollisterStier's business. Today, allergy products are 40 percent of total revenue. Bonanzino says the allergy market is mature and not high growth. Yet the company sees yearly gains and continued success in this area. Contract manufacturing, however, has “tremendous growth potential,” according to Bonanzino. “We expect the percentage of our revenues from contract manufacturing to shift even higher. But, we still take the allergy business just as seriously, and it continues to be a major part of our focus.” HollisterStier continues to introduce new products for the allergy market. In 2003, after eight years of development, the company rolled out TwinjectTM, an FDA-approved epinephrine, two-dose auto-injector used for the emergency treatment of severe allergic reactions. Verus Pharmaceutical Inc. acquired the rights to the product, as well as complementary and next-generation device designs, and ongoing development programs. “Our expertise is in manufacturing, not sales and marketing,” Bonanzino says. “So we sold the line to Verus, who has done a tremendous job with the prelaunch activities. This is the first innovation in epinephrine in about 20 years. The two-dose feature is a major step. Our only competition is a single-dose syringe manufactured by another company. As part of our deal with Verus, we have a 10-year supply agreement to manufacture Twinject.” The contract manufacturing side is also introducing numerous product innovations. Bonanzino says working with other companies, different products and new themes of drug delivery is exciting. The company focuses on parenteral contract manufacturing services, with capabilities including aseptic processing of lyophilized and liquid dosage forms at commercial and clinical scale. “We work with companies from small biotech startups to major pharmaceutical companies,” Bonanzino says. “We nurture our client relationships at every level. The diversity of products we manufacture is getting extensive – from early-stage clinical development to commercial-scale projects.” Contracts range from short- to long-term. Flexibility and understanding its clients' culture are key components to HollisterStier's success in contract manufacturing. “It's all about relationships, as so many businesses are,” Bonanzino stresses. “So many companies forget about that sometimes. We focus on building close relationships with contract companies. We learn about their culture and fit that into our organization.” Expansion Plans Last year, HollisterStier posted its highest revenues and also set its plans for expansion. Bonanzino says the company has moved into a larger warehouse, and will use the old warehouse space for manufacturing. “We are continuing to spend a high level of capital to continue our growth,” he notes. “About four years ago, we had 240 employees. Today, we're approaching 380. That's a lot of growth in a short period of time.” He says HollisterStier will continue on a steady path in both the allergy and contract manufacturing sides. In the next three to five years, he expects overall production to increase, as well as see staff levels rise up to 450 or 500. “We plan to maximize capacity at our current site, but we're already looking at additional facilities,” Bonanzino says. “We're discussing the possibility of constructing a small office building with administrative and quality assurance laboratories. “We're looking at what we see as a bright future,” he continues. “The people that we have here are the ones that make this successful. It's a good place to be when you're surrounded by people like the ones we have here.” |
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