Revenue
in the division rose 8 percent in
2007, driven by higher sales of
Advil and ChapStick and growing
sales of its products overseas.
The
local plant "represents a
significant production output for
the consumer health-care
portfolio," said Richard Hayes,
the plant's senior director of
operations.
Yet
the market is challenging, said
Scott Denicourt, the plant's
managing director.
In
the U.S., the over-the-counter health
products market is mature and
saturated with competitors,
including giant Johnson &
Johnson, which had $14.5 billion in
consumer health-care sales in 2007,
and GlaxoSmithKline with sales of
$6.4 billion.
Wyeth
has faced challenges with its
Robitussin and Dimetapp businesses,
which hit a rough patch last year
after the company voluntarily
recalled bottles because their
dosing cups did not mark the
half-teaspoon level recommended for
children ages 2 to 5.
As
a result, the plant rolled out 60
million bottles of the cough
formulas even though it has the
capacity to produce nearly three
times that much.
Wyeth,
which posted $22.4 billion in total
sales last year mostly from its
vaccines and prescription drug
businesses, is awaiting a Food &
Drug Administration ruling on how
the products should be marketed.
"We
have been going slower the first
half of the year until the FDA makes
a decision," Denicourt said.
While
the brands made at the Darbytown
plant -- including Preparation H and
Anbesol -- enjoy high customer
loyalty, the company is constantly
working to develop new versions of
its familiar products.
Much
of that development work on consumer
brands is overseen from the
company's product development site
on
Sherwood Avenue
in
Richmond
.
The
brands made here have long been
associated with former
Richmond-based pharmaceutical
company A.H. Robins Co.
The
local operations became part of
Wyeth, then called American Home
Products Corp., through the
acquisition of bankrupt A.H. Robins
in 1989. American Home Products
changed its name to Wyeth in 2002.
.
. .
Wyeth
is trying to keep production costs
low.
"For
us, it's about innovation,"
Denicourt said. "Our focus is
to use automation to keep us
competitive."
High-speed,
robotic packaging equipment for
ChapStick, for example, was part of
a $30 million factory upgrade that
Wyeth began in 2005.
In
all, the company has put about $115
million into the plant since 1998,
in part to improve production and
also to meet evolving regulatory
requirements. The plant opened in
1980.
With
the upgrades at the plant have come
changes for employees, too.
"The
biggest change is the
automation," said Micky Brown,
an associate director at the plant
and a 22-year veteran of the
company's local operations.
Like
many other manufacturers, the
company's shift to automated systems
requires more skilled labor now than
in the past, and it has put more
resources into training employees to
operate computerized systems.
"It
is quite a different workforce today
than it was seven or eight years
ago, in terms of skills," said
Hayes, the senior operations
director.
"We
have a lot more technical people
these days," he said.
"When I first came here 15
years ago, I was one of the few
engineers. Now, we have dozens
more."
Wyeth's
investment represents the type of
changes that many
U.S.
manufacturers have made to remain
competitive, said Brett Vassey,
president of the Virginia
Manufacturers Association.
"The
pharmaceutical industry is always on
the leading edge in
automation," Vassey said.
The
industry needs to be, he said,
because costs for product
development and regulation tend to
be higher than in other businesses.
So cost controls and efficiency are
all the more important.
"There
is a lot of competition for
over-the-counter products,"
Vassey said. "They are
competing against imports and
private-label [brands], and they
have to look to automation and
innovation."
Counterfeiting
of popular brands also is a problem.
ChapStick,
for example, has dozens, if not
hundreds, of competitors in the lip
balm category. And the brand is not
immune to knock-offs.
"We
actually found some counterfeit
ChapStick locally," Denicourt
said. "It was being
manufactured in Pakistan."
.
. .
Brands
such as ChapStick and Advil also are
undergoing constant revision to keep
and attract customers.
"We
try to have one or two new brands
every year," said Larry Small,
senior vice president for global
product development.
Much
of the research is conducted or
managed at Wyeth's research and
development center on Sherwood
Avenue in North Richmond, where
Small and a staff of about 250 work.
"We
are a central development lab that
supports plants around the
globe," including sites in
Italy, Canada and China, Small said.
International
sales have been a major driver of
growth. Wyeth reported that
international sales of consumer
health-care products rose about 16
percent in 2007.
The
Richmond research center works to
develop the formulas for new
products and comes up with the
processes to mass-produce them.
"Pharmacists
used to make pills 10 at a time.
This group makes them 10 million at
a time," said Small, himself a
pharmacist.
Product
development times vary, but
researchers have to satisfy many
masters, including the company's
marketing representatives and
regulators such as the FDA and
various other public health agencies
around the world.
Even
ChapStick -- a product that is more
than 120 years old -- has to meet
FDA regulatory requirements when a
new product line is introduced.
ChapStick
has more than two dozen varieties,
with more in development.
"I
think probably the best one right
now is orange sherbet," Brown
said. "It tastes like one of
those old-fashioned creamsicles."