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CEOCFO CEOCFO Monthly Analyst |
Meeting
ALL
the needs in the pharmaceutical industry.
Healthcare
Jugal K. Taneja,
Chairman/CEO William L. LaGamba,
President /COO Ceocfo Interviewer: Bio of Chairman & CEO, Mr. Jugal K. Taneja serves as Chairman of the Board and since
October 2000 has served as Chief Executive Officer. He also served as Chief Executive
Officer from inception through April 1995, and again from January 1996 until August 1999.
Further, he served at various times over the years as President and Secretary. In addition
to his service to DrugMax, Mr. Taneja operates several other companies. He is presently
the Chairman of the Board of Dynamic Health Products, Inc., a position he has held since
Dynamic’s inception in 1991. Through its wholly owned subsidiaries, which include
Go2Pharmacy, Inc. (formerly known as Innovative Health Products, Inc.), Dynamic
manufactures and distributes nutritional and health products. Mr. Taneja also serves as a
director of Go2Pharmacy. Mr. Taneja holds degrees in Petroleum Engineering, Mechanical
Engineering, and a Masters in Business Administration from Rutgers University. Mr.
William L. LaGamba is a member of the board of directors and has served as
President and Chief Operating Officer since October 2000. From March 2000 to October 2000,
he served as Chief Executive Officer. From November 1999 to October 2000, he also served
as Secretary and Treasurer. From November 1999 to March 2000, he served as Chief Operating
Officer and Vice President. From June 1998 until joining DrugMax in November 1999, Mr.
LaGamba had served as Chief Executive Officer of Dynamic. He was also a founder and
President of Becan from its inception in January 1997 until Becan was acquired by Dynamic
in June 1998. For 14 years prior to January 1997, Mr. LaGamba served in various capacities
for McKesson Drug Company, a large distributor of pharmaceuticals; health and beauty care
products and services, and FoxMeyer Drug Company. Ceocfointerviews:
Please explain to my readers what your company is all about and what your purpose is. Mr. LaGamba: We sell pharmaceuticals, health and
beauty aids and nutritional supplements to the pharmacy community. The pharmacy community being, independent
pharmacies, regional chains, national chains and BCS counters. That is our customer base. We provide them with the top marquee items, fast
moving products, as well as generic products or vitamins that have specialties associated
with them. Again, we sell them to the
pharmacy trade class. The reason we changed
our name from DrugMax.com is that, initially, we set out as a business-to-business
platform via the Internet and we learned, as we have evolved over the past year and a
half, DrugMax traditional infrastructure was driving our revenues. Our inside sales force and our outside sales force
have been very instrumental in our growth. We
thought it was prudent to drop the “dot-com” from our name. As a name, DrugMax is a better reflection of our
corporate capabilities as a full-line pharmaceutical wholesaler. Mr. Taneja: Actually,
we are very pleased with our e-commerce operations.
About one fourth of our business is done through online transactions and the
rest comes through traditional means like inside and outside sales. We still use the Internet to attract and retain
more customers. It also increases
DrugMax presence nationwide, so no community pharmacy is out of our reach. There are DrugMax members in 49 states. We are using the Internet the way it should be
used, to compliment your business efforts. Ceocfointerviews:
So, you are like the middle company between the drug companies and the pharmaceutical
companies, is that correct? Mr. Taneja: We
are not the middle-man. DrugMax takes
possession of the product. We own it and
resell it to the pharmacies. Mr. LaGamba: In the pharmaceutical industry, most of the
major pharmaceutical companies will not sell directly to a pharmacy. They utilize a pharmaceutical wholesaler, an
authorized distributor if you will. We are
one of those authorized distributors. We
actually, as Jay has mentioned, we take possession of the product and we inventory and
then sell the product. Ceocfointerviews:
You’re not just a distributor of pharmaceutical products; you sell pet products and
batteries as well. Mr. LaGamba: We
carry 20,000 stock keeping units in our inventory at any given time. So everything that you can imagine when you
walk into a pharmacy, DrugMax can supply. It's
the suntan lotion, or anything they have on display.
It's the sunglasses on the counter and it's the Prozac and Prilosec they
have behind the counter and everything in between. Ceocfointerviews:
So, it is more than just drugs. Mr. LaGamba: That
is correct. We supply everything pharmacies
carry with the exception of tobacco, candy and greeting cards. Ceocfointerviews:
So, how did you get your name? To receive a complete copy of this interview call: 570-839-0236 |
