Ferndale firm rides homeopathic wave
Botanical Laboratories becomes major player

by Christopher Key

 

Homeopathic remedies have enjoyed a tsunami of popularity over the past 30 years and Botanical Laboratories in Ferndale is confidently riding that swell. The popularity of homeopathic remedies stems from a number of factors. First is the growing acceptance of what is now called complementary medicine. Second is the widespread popularity of holistic approaches to treatment; that is, treating the whole person. Third is the skyrocketing cost of standard pharmaceuticals. Finally, there is a broader awareness of undesirable side effects and interactions among the standard pharmacoepia.

The theory behind homeopathic remedies is that very small amounts of naturally occurring substances in solution can activate a person’s immune system, thus causing the body to heal itself. Homeopathic medicine is not without controversy, but an increasing amount of research shows that there is validity in this approach.

“Homeopathic remedies are similar to vaccines,” said Botanical Laboratories CEO Jim Coyne. “You take minute amounts of an allergen, for example, which helps the body build defenses.”

Botanical Laboratories traces its lineage back to 1979 when it was a very small manufacturer of homeopathic remedies. The firm was purchased by a California business and moved to that state. The California company, in turn, was swallowed up by a much larger pharmaceutical manufacturer. Soon, that corporation found that there was duplication among its product lines and began selling off divisions in order to get back to its core products.

Coyne, who had been involved with Botanical Laboratories since 1984, repurchased the firm and moved it back to Ferndale in 1988. He reapplied for licenses from the Food and Drug Administration, the Washington State Board of Pharmacy and the US Department of Agriculture. The latter certification is required for shipping botanical products offshore.

“These agencies inspect us regularly,” Coyne said. “After hundreds of inspections, we’ve never been negatively cited for the way we operate.”

Over the years, the company has gradually built its infrastructure.

‘We’ve worked to attract business in contract manufacturing,” Coyne said, “while building up our own brands with improved distribution and representation. This required developing process controls or standard operating procedures.”

There are a number of advantages to being located in the northwest.

“It’s relatively easy for us to attract personnel in key jobs,” Coyne said, “laboratory technicians, quality control, research and development. The inventory of talent in this area is very good for us.”

Much of that is attributable to the presence of Western Washington University. One employee, Nicole Slater, started with Botanical Laboratories as an intern while studying at WWU. She worked her way up from receptionist to customer service. Now that she has her degree, she works full time in marketing.

“We have 14 graduate chemists on staff,” Coyne said, “and employ nearly 135 people during our peak season.”

Many of the company’s products are homeopathic remedies for colds, flu, allergies and related complaints. That focus, to a certain extent, results in seasonal fluctuations.

“When we have to ramp up,” Coyne said, “we rely on help from Express Personnel. Our human resources department works with them when we need extra help in production and shipping.”

Full time employees tend to stick around, in part due to a generous benefit package that was just increased by 30 percent.

“Many of our employees in production, middle and upper management have been with us for a long time,” Coyne said. “There are four mechanics on hand at all times just to maintain all our equipment.”

Coyne believes that employees need a certain amount of structure and order along with a healthy dose of empowerment.

“We have a full staff meeting every Monday morning at 9 a.m.,” Coyne said, “to discuss challenges from the previous week. It’s an open forum where departments can talk to each other and cross-pollinate. We discuss the schedule and how to keep it flowing. We identify areas where one department needs help from another and look ahead to the next four weeks. What kind of lead-time do we need for pending purchase orders? What raw materials do we need to procure?”

Each department meets briefly every day as needed. Then, there are monthly lunch meetings to foster company-wide communications, welcome new employees and present safety awards.

“I firmly believe in empowering the managers,” Coyne said. “It results in a strong esprit de corps and enthusiasm for what we do. They’re the ones who really run the company.”

Coyne employs the SWOT (strengths, weaknesses, opportunities, threats) approach to keep the company on track.

“Our basic philosophy is ‘We can do that,’” Coyne said. “We want to be the nation’s premier manufacturer of homeopathic remedies and dietary supplements.”

While homeopathic remedies represent about 30 percent of the company’s business, Botanical Laboratories also produces a wide range of over-the-counter drugs. These lines include Herbs for Kids formulas designed especially for children, and ZAND Herbal Formulas. Focusing on remedies that are both alcohol free and taste good, Herbs for Kids has captured a 53 percent market share against 24 competing brands. The ZAND line includes the original Echinacea/Goldenseal formula that has become the top selling herbal product in the country; Herbalozenges for cough and sore throat relief; a three-part detoxification system; and a group of products aimed specifically at women.

Botanical Laboratories homeopathic lines include bioAllers, for treatment of allergic symptoms, and NatraBio medicated creams for the relief of muscle pain.

NatraBio also produces a two-step stop-smoking program called Nico-Rx that involves a chewing gum to counter nicotine cravings and detoxifying tablets to help reduce irritability.

The Ferndale company manufactures nasal gel swabs for Matrixx. This product puts zinc glutinate in the nasal passages. Recently completed clinical trials at UCLA demonstrated that this treatment substantially reduces the duration of colds.

“The blend of contract production and our branded products,” Coyne said, “is an excellent business model. Eventually, we will be able to stabilize the staffing level rather than having it go up and down.”

One of the company’s specialties is liquid delivery systems.

“There are very few companies that do liquids well,” Coyne said. “It involves a lot of challenges: solubility, taste, visual appeal, chemical interaction and instability. The delivery system has to test out to the expiration date. The advantage is, of course, that liquid is absorbed into the system much faster. People often prefer liquids if they’re taking a lot of different medicines. It’s a lot easier to swallow than tablets.”

It also requires a very complex and expensive water purification system.

The contract production side of the business relies heavily on word-of-mouth advertising.

“We’re the manufacturer of choice for GNC (General Nutrition Centers), one of the largest companies of its kind,” Coyne said. “We also work with Costco, which features our products and conducts in-store demos.”

The company is very selective about both its products and its vendors.

“We do not use ephedra, for example, even in our decongestant products,” Coyne said. “We steadfastly turn down business if it’s not good for us.”

Ephedra, also known as ma huang, is increasingly controversial due to a rash of side effects associated with its use as a weigh-loss or performance-enhancing drug.

The impact of Botanical Laboratories on the local economy is extensive. Their vendor list runs to well over 150 firms in Washington alone.

“Sometimes we buy in bulk from someone else that does tablet compression and capsulizing according to our specifications,” Coyne said, “then we do value-added work here. All of our microbial assay work is done by Avocet in Bellingham. Everything is tested constantly by us or by an outside party. We like to do business locally. Our vendors have to show consistency in quality and supply. Once they’ve qualified, we tend to stick with them.”

Botanical Laboratories brings a lot more than dollars to the community. The company fields a team for Ski to Sea and has received a number of commendations for encouraging employees to participate in blood drives on company time. Residue from the company’s raw materials is recycled as mulch.

From the original 13,000 square foot facility, Botanical Laboratories now occupies three buildings at its main site on Smith Road totaling 45,000 square feet. Two off-site facilities add another 20,000 square feet. The company owns five acres adjacent to the Smith Road site and hopes to add another 40,000 square foot building in the near future.

Not bad for a small town firm that maintains a determinedly low profile. Botanical Laboratories’ impact on the local economy is anything but low.