| Synova buys the Today
Sponge's producer - Company in Media plans big marketing campaign
A popular over-the-counter contraceptive that inspired a
Seinfeld episode about "sponge-worthy" men has a
new owner with plans for a renewed marketing push.
The Today Sponge, a favorite nonprescription birth-control
product for women before it was withdrawn from the market
in 1995, has been acquired by Synova Healthcare Group Inc.,
of Media.
Synova said yesterday that it had bought Allendale Pharmaceuticals
Inc. in an all-stock transaction valued at more than $16 million.
Allendale bought the rights to the Today Sponge in 1998 from
American Home Products Corp., which is now Wyeth.
Between 1983 and 1995 -- when the Today Sponge was taken
off the market because of deficiencies at the manufacturing
plant -- about 250 million sponges were sold.
Wyeth quit making the sponge in late 1994 rather than upgrade
a manufacturing plant in Hammonton, N.J., that made a variety
of the company's products. The Food and Drug Administration
had cited the plant for water and bacterial contamination,
but never questioned the sponge's safety.
In 1995, the disappearing sponge was depicted on the television
comedy Seinfeld, when the character Elaine scoured stores
for her favorite birth control, and stretched her supply by
setting "sponge-worthy" standards for dates.
After Allendale, of Allendale, N.J., secured FDA approval
to get it back on the market, the sponge had been sold since
2003 in Canada and since late 2005 by U.S. retailers, including
CVS, Walgreens, Rite Aid, Target, Pathmark and Wal-Mart, and
online at Amazon.com and Drugstore.com. It retails for about
$7.99 for a three-pack, Synova said.
While the pill and sterilization have long been the top choices
of women who use contraception, the sponge was popular among
women who had problems with prescribed hormonal contraceptives
or difficulty with more complex inserted devices. The sponge,
which contains a spermicide, was easy to use and did not require
a doctor's visit.
Synova Healthcare plans to aggressively advertise and market
the sponge, chairman and chief executive officer Stephen E.
King said. "We are working on a three-phase campaign
that says 'the sponge is back.' Initially, for the first 120
days, we plan a very aggressive public relations and Internet
advertising campaign. That will be followed up around the
first week of May with a broad-reaching multimedia campaign
incorporating TV, radio and print."
At the same time, the company will reach out to the medical
community. "There is a big group, the OB-GYN community,
that is unaware this product is back," King said.
King, who worked previously at Wyeth and GlaxoSmithKline
P.L.C., was a founder of Synova in 2003 to sell women's health-care
products, including over-the-counter diagnostic tests.
"This was a great product. Revenues in 1995 exceeded
$15 million a year," King said. The sponge was used by
an estimated 6.5 million women between 1983 and 1995.
King would not disclose the 2006 sales of the Today Sponge.
"We believe this product enjoys a loyal customer base,
which, when combined with our broad retail distribution and
our core competency of developing women's health brands, should
provide our company with a positive opportunity for long-term
business growth," King said.
Synova Healthcare has 12 employees and sells two licensed
over-the-counter diagnostic tests to help women detect menopause
and vaginal infections. The company has licensed a third product,
a treatment for hemorrhoids.
Allendale will operate as a wholly owned subsidiary of Synova,
which had $200,000 in net revenue in 2005, but is not yet
profitable.
Shares of Synova closed yesterday up 18.5 percent, or 19.5
cents, at $1.25.
The Today Sponge of Yesteryear and Now
1983: The Today contraceptive sponge is approved by the Food
and Drug Administration.
January 1995: Whitehall-Robins Healthcare withdraws the sponge
after the FDA discovers high rates of bacteria at its Hammonton,
N.J., plant.
December 1995: "Seinfeld" episode airs in which
the Elaine Benes character debates whether her current boyfriend
is "sponge-worthy" after learning that the birth
control method is in short supply.
1998: Allendale Pharmaceuticals Inc. buys the rights to the
Today Sponge from American Home Products Corp., the parent
of Whitehall-Robins.
2003: Allendale reintroduces the sponge in Canada.
2005: The FDA approves the product for sale in the United
States.
Yesterday: Synova Healthcare Group Inc. buys Allendale and
promises to ramp up marketing of
the sponge.
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