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Zila Pharmaceuticals: Products
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Gross margins for Zila Pharmaceuticals increased to 47% in the first quarter of fiscal 2006 from 39% in the first quarter of fiscal 2005, due to improvements in gross margin across all product lines. Gross margin for the core Pharmaceutical business, excluding IST, was 62%.
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As it looks to shift its focus to oral cancer screening, Zila Pharmaceuticals (Phoenix, AZ) has completed its $34 million acquisition of Professional Dental Technologies (Pro-Dentec; Batesville, AK), a privately held designer, manufacturer, and marketer of dental products. Zila recently sold its Nutraceuticals business for $37.5 million as part of its plan to concentrate on the cancer screening market.
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Zila ... acquired Peridex from Proctor & Gamble in November 1997. Peridex, first introduced by P & G in 1987, was a prescription antibacterial oral rinse used for treating gingivitis and reducing plaque. It was the first such rinse to receive the American Dental Association seal of approval for its use. Although terms of the sale were not disclosed, P & G decided to sell off the successful product in order to focus the dental product segment of its business on toothpaste.
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Zila Nutraceuticals Group: Revenues, which include sales of its Ester-C ingredient, increased 37.4 percent to a record $6.5 million in the first quarter of fiscal 2003, compared with $4.7 million in the year-earlier quarter. Sales of Ester-C products alone increased 48.7 percent, due in large part to a single sale to a major customer. Sales and marketing expenses increased $206,000 vs. last year's quarter. Gross margin for the group was 66.8 percent for the quarter versus 60.9 percent in the first quarter last year.
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At that time, Zila was still a developer and marketer, not a manufacturer. It had only nine full-time employees. A California company actually made its products. It was ... a small operation, selling only about $3 million in ointments in the fiscal year that ended on July 31. It was also just treading water, having logged losses over the previous five years. Its estimates were that it had gained only a 4 percent share of the oral hygiene market by 1989.
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Zila, Inc., headquartered in Phoenix, Arizona, is an international provider of healthcare and biotechnology products for dental/medical professionals and consumers. Zila has three business units: Zila Pharmaceuticals, marketer of Zilactin® oral healthcare products, Peridex® prescription mouthrinse and ViziLite® oral examination kits, and manufacturer of patented swabs at Innovative Swab Technologies; Zila Nutraceuticals (Inter-Cal Nutraceuticals), manufacturer of patented Ester-C® branded products and Palmettx® Saw Palmetto; and, Zila BioTechnology, developer of OraTest® oral cancer detection products and Zila® Tolonium Chloride technologies for cancer and pre-cancer detection and treatment. For more information, visit www.zila.com.
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