Madison — In August, Madison-based Cypress Pharmaceutical was awarded the Cardinal Health Supplier Quality Award for the sixth time, becoming only one of nine companies in the nation’s pharmaceutical industry to have achieved the prestigious award as many times.
On the heels of that success, in September, the company established a specialty sales force in its branded division, Hawthorne Pharmaceuticals, which will market eight products to dermatologists, oncologists and neurologists, beginning in the first quarter of 2005.
The expansion requires the hiring of 25 sales representatives to add to the company’s staff of 120, of which two-thirds are on the sales force. The company’s generic line includes approximately 200 products while its branded division promotes approximately 15 products. The company also has on file with the Food and Drug Administration’s (FDA) Abbreviated New Drug Applications (ANDA) for six products.
“The company has been built on the high level of customer service the company provides its customers, physicians, pharmacists and patients,” said Jason Sanderson, who joined the company as CFO in 2000. “The tone at the top that permeates the entire company is the commitment to providing perfect customer service on a daily basis. The company’s goal of shipping 100% of its customer orders complete, without errors, the day the order is received, has resulted in a consistent rate of 99.9% achievement for 11 years. The company’s consistent focus on meeting the needs of its customers has resulted in secure, stable, long-term relationships with all of the national drugstore chains and national drug wholesalers.”
After working in the pharmaceutical industry for several years and recognizing the need and opportunity for a generic drug company that focused on quality, integrity and service, Max Draughn established Cypress Pharmaceutical Inc. in July 1983 with one cough/cold product. Since then, it has earned a reputation as one of the most respected pharmaceutical companies in the U.S. that develops, markets and distributes generic prescription and over-the-counter pharmaceutical products to the leading national pharmaceutical wholesalers, chain drug stores, distributors and other retail merchandisers. Last year, it was named the second fastest growing privately held company in Mississippi.
Cypress Pharmaceutical offers generic and specialty products in a wide variety of therapeutic categories, including respiratory/cough-cold, nutritional/prenatal vitamins, fluorides/dental health, women’s health and pediatrics, urinary tract, gastrointestinal, analgesics, dermatological and long-term care. Its product line is available in a variety of dosage strengths, with formulations such as controlled-release, soft gels and taste masking, and product forms such as liquid, topical and solid. The company outsources the manufacturing of its products to approximately 25 contract manufacturers throughout the U.S. and Canada.
“Sales continue to grow rapidly,” said Sanderson. “The company’s CAGR (compounded annual growth rate) for the past 10 years is 60.5%, with growth in 2003 of 48%, 2002 of 84% and 2001 of 93%. The company expects to report gross sales of approximately $90 million in 2004.”
The company completed its third expansion in July, adding 25,000 square feet of warehouse space. Approximately 5,000 square feet of office space was added during the first expansion in June 2000. The second expansion, in June 2002, tacked on another 14,000 square feet of warehouse space. The Madison facility now includes more than 51,000 square feet of warehouse space and 8,000 square feet of office space.
“Attracting and retaining good people and allowing them to do their job…allows us to be more nimble and quick than many of our competitors and, in our opinion, gives us a competitive advantage,” said Sanderson.
Draughn, a Southern Miss alum, serves on the University of Southern Mississippi Foundation board of directors, is active in his church, Broadmoor Baptist Church, and contributes to numerous philanthropic organizations. He was named to the Mississippi Business Journal’s Top 40 Under 40 in 2001. The University of Southern Mississippi’s College of Business and Economic Development recently presented him with the 2004 Distinguished Entrepreneur Award. He and his wife, the former Susan Owen, have three young sons, Owen, Case and Stephen.
Contact MBJ contributing writer Lynne W. Jeter at firstname.lastname@example.org.