Med Gen Inc. (OTCBB: MGEN) posted its unaudited revenue as of July 21, 2007, yesterday, reporting an 850 percent increase over the same period last year.
Med Gen, manufacturer and marketer of specialty OTC products, reported that its unaudited revenue for the year so far is $1.7 million; monthly unaudited revenue as of July 21, 2007, was up 3,000 percent to $252,658 as compared to last year.
This is good news for any biotech company; according to Paul Kravitz, Med Gen chairman and CEO, most biotech companies aren’t profitable for years.
“We have … tried to explain to people that we’re a biotech company. Most biotech companies don’t usually come to fruition for at least five or six years and some never make it at all,” Kravitz told Market News First.
While Kravitz acknowledged it has taken the company a little longer than usual to generate income, he notes that the company has, and will keep selling its products, and will keep adding new items to its product line as well.
Banking on his previous statements, Kravitz said this could be the golden year for the company.
“This is probably going to be the most important year we have; most biotech companies start seeing major volume and revenue increases after that seventh year in business,” he said. “This is kind of our flagship year.”
Med Gen once had about 70 employees, but recently made the decision to cut down costs and subcontract all the manufacturing and shipping for its two factories. The nine employees in the Boca Raton office comprise the marketing group, which Kravitz said, allows the company to put more focus on its advertising and marketing.
Med Gen product line includes its flagship product, SNORenz, a throat spray used to reduce snoring. The company also manufactures sleep aids, roll-on pain relief medicine, and weight loss programs.