OTC Pharmaceutical Company, 80%+ Profit Margin

Price: $3,000,000

Annual Revenue: $750,000

Net Cash Flow: $600,000

Industry: Health Care, Pharmaceutical

Location: NYC, NY

This Company develops, markets and distributes a unique line of non-prescription pharmaceutical products sold over-the-counter and online to patients suffering from a chronic and debilitating condition. This particular illness is one of the most prevalent disorders in the world and studies have estimated that 4%-6% of people suffer from it. The Company‘s products have been developed through the work of a New York City-based physician who is one of the world’s leading authorities on the treatment of this particular disorder. 

The Company’s products are very profitable with an average net margin per unit of approximately 900%. Its highest margin product has a markup of 1,560%. As a result, the Company enjoys cash flow margins of 80%. Approximately 60%-70% of the Company’s business is generated from repeat customers with the average customer using the products an average of 5+ years. The Company occupies a 600 SFT office space and manufactures its products utilizing third-party facilities. A buyer could relocate the business without much difficulty as the business can be run virtually and the location does not currently accept “walk-in” retail business.

Growth Opportunity:
Management believes that the company can significantly expand the volume of products it sells by executing a coordinated marketing plan for promoting its products to consumers and OTC sales through retail outlets and online and to physicians. A highly-targeted online marketing campaign can produce immediate and substantial results. The Company is currently working with an Amazon expert on listing and fulfilling its products on Amazon.com. In addition, a sales team can be developed to target distribution outlets, including retail pharmacies, health food/nutrition stores, retail chain stores, and physician networks. The Company has developed a business plan where sales and net profit can reach $76 million and $48 million, respectively within 5 years.