CPM: What was your career path in the pharmaceutical industry?
MACKAY: I landed my first job in the industry right after graduating from university. I started as a medical representative for Parke-Davis in Montreal. I was there for about four years before I moved to Winley-Morris, where I was originally Sales Manager and then, after about four years or so, Vice-President and Director. When Winley-Morris was bought by ICN in 1972, I became Executive Vice-President and Director of that company. Four years later, the Stiefel chapter of my life began.
CPM: How did you get involved with Stiefel?
MACKAY: I started dealing with Stiefel when I was with Winley-Morris. Winley-Morris acted as Stiefel's agent in Canada, so I had dealt extensively with the Stiefel family during that period. I knew the family quite well by the time they decided to open a Canadian division and they knew me well enough to offer me equity and the presidency of the new operation. I jumped at the chance to get so deeply involved in a name-brand company.
CPM: Tell us a little about Stiefel's corporate profile.
MACKAY: Stiefel is an international company, with its headquarters in Coral Gables, Florida, specializing in dermatologic products. The business is headed up by two brothers who are descendants of the man who founded the company 150 years ago in Germany. Werner Stiefel is Chairman of the U.S. operations and Herbert Stiefel is President, International. Werner's son, Charles Stiefel, is President.
Stiefel employs 1,400 people worldwide. The company is geographically divided into six separate areas: the United States and five international areas.
Area one is Canada; area 2 consists of Spain, Portugal and Latin America; area 3 encompasses the United Kingdom, France, Germany and Italy; area 4 covers the rest of Europe, the Middle East and most of Africa; area 5 covers the Far East, Southeast Asia, Australia and South Africa.
Stiefel operates in 33 countries directly and 68 more through agents or distributors. Stiefel has three research facilities: one in Oak Hill, New York, one in the U.K., and one in Brazil. Manufacturing is carried out at six different sites worldwide. In Canada, most of Stiefel's products are manufactured locally on a contract basis.
CPM: What types of dermatologic products does Stiefel produce?
MACKAY: Stiefel Canada covers the entire spectrum of topical dermatologic products. Stiefel products are used in the treatment of acne, seborrhea, psoriasis, warts, decubitus ulcers and sensitive-and dry-skin conditions.
In acne, Stiefel Canada controls more than a third of the market in that ethical therapeutic area. Stiefel has introduced three new products in the fastest growing acne treatment category: the topical tretinoin/isotretinoin market. Stievamycin® gel is a combination antibiotic/tretinoin, Retisol-A® cream is a tretinoin with a sunscreen in a moisturizing base and Isotrex® gel is a topical isotretinoin. Altogether, Stiefel has a 65% share of the tretinoin/isotretinoin market.
In the more traditional acne market, Stiefel still controls about 40% of the benzoyl peroxide market. Solugel® is Stiefel's leader in this category; its pharmacologic makeup ensures that the benzoyl peroxide crystals dissolve completely on application.
CPM: How did the acquisition of the ethical division of Trans CanaDerm (TCD) affect your company's product portfolio?
MACKAY: Stiefel and TCD had combined resources in the past when an event called for support that neither company was able to produce alone. So Stiefel had a close working relationship already in place.
Interestingly enough, although both companies had a very broad range of dermatologic products, there was very little duplication. So when the opportunity to acquire TCD arose in May 1996, Stiefel didn't hesitate. The two companies were a perfect fit.
The products that were acquired from TCD include Buro-Sol, Cuplex, Dehydral, Doak Oil, Emo-Cort, Formula 405, Petro-Phylic, Pretect, Prevex, Tar Doak, TersAc, Tersa-Tar, Tersaseptic, Uremol and Versel. Stiefel is now marketing these products under its own corporate banner.
CPM: Apart from picking up TCD's existing products, what opportunities and challenges has the acquisition presented for Stiefel?
MACKAY: These acquisitions give the company the critical mass to expand its physician coverage to a wider audience — not only to dermatologists, but to general practitioners and others with an interest in skin conditions.
The additional sales volume will be employed to help fuel future growth and development in the area Stiefel knows best: dermatology.
In addition, significant funding will be designated for pure research and development, which will ultimately result in bringing new products to market.
Stiefel will always be open to new opportunities — such as the acquisition of products or suitable companies — and will continue to actively seek other means of maintaining its growth curve through strategic alliances or licensing.
Stiefel is anticipating a new venture in the consumer arena with Duofilm®, a wart treatment, and a revamped PanOxyl® (benzoyl peroxide) line for acne.
CPM: Tell us about the strides Stiefel is taking in the field of topical corticosteroids.
MACKAY: Stiefel has recently strengthened its presence in the corticosteriod field. Two highly respected topical agents were acquired from Wyeth-Ayerst in February, 1995. Cyclocort®, for moderate to severe dermatoses and Aristocort®.
These two products were added to Stiefel's existing corticosteroid line, which includes Nerisone®, Nerisalic® oily cream, Sarna-P® lotion and Sarna HC®.
CPM: In what types of public-service ventures is Stiefel Canada involved?
MACKAY: Every year, Stiefel awards the Year Book of Dermatology to residents at all universities across Canada who successfully complete their studies in dermatology.
Stiefel also gives an annual award in dermopharmacy at the University of Montreal and in dermatology at the University of Saskatchewan.
Grants are also made to various professional organizations from time to time in support of continuing medical education or for such items as textbooks or laboratory equipment.
CPM: Stiefel Canada has come a long way in just 20 years. To what do you attribute this success?
MACKAY: Stiefel has made dermatology its one and only focus. The company's mission statement is to maintain its position as number one in dermatology.
As part of Stiefel's commitment to dermatology, the company is very involved in the Canadian Dermatology Foundation (which raises funds distributed as Research Grants) and also in supporting the activities of the Canadian Dermatology Association.
At Stiefel, we pride ourselves on being attuned to the needs of dermatologists and customers, and to developing strong personal relationships at all levels. The corporate commitment is to excellence from start to finish: the products, physician support and education, communications, personnel and customer service. Stiefel Canada has a special corporate culture that reflects this philosophy.
CPM: What are your views on the widespread corporate consolidation we've seen in the pharmaceutical industry in the past five to ten years?
MACKAY: The mergers, acquisitions and downsizing of the past five years have resulted in a myriad of opportunities for mid-sized, niche-market companies like Stiefel.
A well known Wall Street stockbroker has a vision of merged mega-pharmaceutical companies. Because of a limited potential worldwide, dermatologic products will be a low priority for the leviathans of the pharmaceutical industry. Stiefel Canada can certainly benefit from this situation. For example, in the next few years, we can anticipate being in the enviable position of taking its pick of some high-quality divested product lines.
It is important that we maintain our preparedness to respond to the changing conditions of the market. Stiefel's focus on dermatologic research and development is fundamental to the company's strategic plan; it establishes the base for bringing to market innovative products designed to meet the needs of the practicing dermatologists.
Dermatology is Stiefel's past, present and future.
Canadian Pharmaceutical Marketing is STA Communications Inc. publication.
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