Value Drugs intends to enter the market for discount pharmaceutical products by manufacturing stomach-relief and cough syrup products.

The company has acquired a prospective customer base through industry contacts.  These initial customers will be retailers in the Massive City area.  The founder of the company met the vice president of the acquisitions department of a local discount chain store at a social gathering, and he urged Joe Formulary to go into business.  That individual also provided him with the names of several purchasing agents for independent area supermarkets and drug stores.  Many of these individuals have expressed a desire to do business with a regional discount pharmaceutical manufacturer.

Based on the demand for these products, he has a reliable foundation for immediate sales and, as such, expects gross sales to exceed $5,000,000.00 in his first year of operation.  Supplemental efforts at expansion will occur through aggressive advertising and direct sales over time and as deemed necessary by demand conditions in the broader market.

Value Drugs expects the sales of stomach-relief products to be fairly consistent in terms of monthly sales, with peak sales being realized during the summer months.  However, the company anticipates greater fluctuation in it’s cough syrup production plans.  Winter months typically produce the largest sales volume for this product, and summer the lowest.  Nonetheless, the product mix has been chosen, in part, to maintain revenues throughout the seasonal fluctuation relating to each of these products.