In 2009, Fisher Hoffman Therapeutics (FPH) spun off the therapeutic arm of the company that would become Therapeutic Goods & Medical Devices (TGPMD).
Its CEO, Kevin Fuchs, had a background in the pharmaceutical industry, having worked at Pfizer, Bristol-Myers Squibb, and AstraZeneca.
When he joined Therapeutica in 2011, he had little experience with marketing.
So Fuchs had a few ideas.
He wanted to build a brand that could generate revenue from the sale of pharmaceuticals.
Fuchs saw a market opportunity.
“We wanted to make the pharmaceutical business profitable and that was a challenge, because of the size of the market,” Fuchs said.
“But we were going to do it from a brand perspective.
The problem with our competitors was that they weren’t selling products that we were selling.
They were selling products, but they were not selling them to our customers.
So we decided to make our products a little bit more unique, that they were going be differentiated from what the other companies were selling, and we wanted to do that by selling more drugs.”
Fuchs took a small investment in a startup called Ingenium, which was acquired by Gilead Sciences.
Ingenial’s CEO, Matthew E. Shultz, was a veteran of the pharmaceutical field and had a strong track record with marketing and branding.
As he saw it, Fuchs could use his brand to market and sell his products, and Shultz saw an opportunity.
In early 2011, the two began collaborating on a new venture called the Therapeuticals Group.
The Therapeurics Group’s products, which included a new line of drugs called Therapex, were aimed at the primary therapeutic markets of the world: people with cancer, heart disease, and chronic pain.
But their biggest focus was the more general therapeutic markets: people in recovery from cancer and those suffering from chronic pain who were looking for alternatives to opioids.
In the company’s first two years, the Theraputics Group was valued at $500 million.
The company had a head start on the market, but it didn’t have much room to grow.
As a result, Therapexs sales fell from $1.4 billion in 2011 to $900 million in 2012, and Fuchs told Business Insider that the company needed to turn its focus to the next big market.
The next market for the company was emerging markets.
And in a way, that was the perfect opportunity.
Emerging markets are the fastest-growing areas of the global economy, and they’re home to a huge number of people, who need access to drugs that are not available in the United States.
“When we started, we had the opportunity to make a very strong product, which is to say a really good drug, and to sell it for a very low price,” Fuch said.
Therapeys sales dropped from $2.7 billion in 2010 to $1 billion in 2012.
“So we were in a strong position,” Fuches said.
By 2013, Fuchess told me, Therapys sales were down to $2 billion.
“It wasn’t a good time,” Furchins told me.
“Our sales were declining.
It was a slow start.
And the product was not as good as we wanted it to be.”
And yet, Therapyys sales continued to rise.
In 2015, Theracys sales grew from $3 billion to $10 billion, an astonishing amount of growth.
Fuchens sales also kept growing.
In 2016, he told me that Theracies sales were at $10.5 billion.
But, he said, “We were going in the wrong direction.
We needed to focus on making sure we were a little more innovative.
And that meant that we had to make more drugs that were less expensive.
So the product that was made was a little too expensive.”
The price of the new drugs increased from $100 to $300.
Fuch told me the Theracis product that had been so popular in developing markets was now priced at $1,200.
It made the drugs difficult to obtain for people in the developing world.
In fact, Fuch believed that some of the Therabotics products that were on the way out of the pipeline were being sold to patients in developing countries.
“The drug that we’ve made to date is not going to be able to get you in a market that is a little further ahead,” Fusch told me during a visit to a company called Aromas Therapexpanders.
“There’s not a market for that drug, even though we know it works in people.”
The problem is, the product also made it more expensive for people to get it.
It took Fuch three years to find a way to make it more affordable.
In 2013, the company began a clinical trial with the FDA to evaluate whether Therapics products would be effective