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Pathways: Winter 2005<br />

continued from page 1<br />

handful of pharmaceutical companies,<br />

including Johnson & Johnson.<br />

COSMECEUTICALS IN<br />

THE OFFICE SETTING<br />

Dr. Mary Lupo, a New Orleans<br />

dermatologist who has her own line of<br />

skin care products, said she first considered<br />

embarking on the project in<br />

1989.“I liked [alphahydroxy acids] and<br />

couldn’t get information from companies<br />

on acid concentrations, etc.,” said<br />

Lupo, a clinical assistant professor of<br />

dermatology at Tulane University<br />

Medical School. “It took me until<br />

1994 to find a biochemist I thought I<br />

could work with.” Her product line<br />

came out the next year and now<br />

includes 10 items.<br />

Lupo displays her skin care products<br />

in a pedestal case that takes up<br />

“no more [space] than a chair.” She<br />

also has another case where patients<br />

check out of the office, from which<br />

staff can retrieve products. “<strong>The</strong> case<br />

has storage underneath, and we have<br />

more products down in our laser<br />

area,” she said.<br />

Lupo estimates that dispensing<br />

products takes “a few hours” a month to<br />

educate patients, monitor inventory,<br />

and otherwise handle the items. In<br />

addition to her own line, Lupo dispenses<br />

two others, Procyte and Kinerase,<br />

and will soon carry a third, Prevage.<br />

How does she choose which<br />

products to offer? “<strong>The</strong> most important<br />

element in deciding is to believe<br />

in the products you sell and understand<br />

how to recommend them to<br />

patients. It should not be about<br />

money but rather good patient care. If<br />

they are doing well and like their<br />

existing products, I don’t push mine<br />

just to make a sale.”<br />

Dr. Patricia Farris, a clinical assistant<br />

professor of dermatology at<br />

Tulane University Medical Center, in<br />

New Orleans, said she uses herself as<br />

her own guinea pig.“I never buy anything<br />

that I don’t try myself. Personally,<br />

I can’t sell anything I don’t love.<br />

My motto is ‘great products at a great<br />

price point.’”<br />

Farris said most of the fun dispensing<br />

products comes when she<br />

talks with patients about what works<br />

and what doesn’t, “and saving them<br />

money on expensive brands that are<br />

not worth the money” is also pretty<br />

enjoyable. “Patients really appreciate<br />

this and find it a value-added service.”<br />

As for the business end, how<br />

much doctors make depends on how<br />

committed they are to dispensing, she<br />

said. Many dermatologists sell products<br />

in the office. Fewer take the time<br />

to talk with patients about what they<br />

should be using. More often, those<br />

recommendations come from office<br />

staff instead of the physicians themselves,<br />

a practice that should be<br />

reversed, she said.<br />

What happens if a product doctors<br />

sell is no longer produced or for some<br />

reason loses luster—leaving patients on<br />

a limb? That’s a risk, admits Farris.“We<br />

have had problems with products that<br />

are discontinued, but I try to find<br />

something to replace it with that is<br />

comparable.”<br />

While a growing<br />

number of<br />

dermatologists<br />

dispense<br />

cosmeceuticals,<br />

they’re now<br />

competing, often<br />

unsuccessfully,<br />

with the Internet.<br />

Dr. Mark Nestor, director of the<br />

Center for Cosmetic Enhancement, in<br />

Aventura, FL, sells his own line of cosmetic<br />

products, as well as selects others<br />

that he likes.<br />

“If you dispense appropriately and<br />

ethically, we’re essentially giving benefit<br />

to patients that they don’t have otherwise,”<br />

said Nestor, who is also an<br />

associate professor of dermatology and<br />

cutaneous surgery at the University of<br />

Miami School of Medicine.“You can’t<br />

get these cosmeceuticals most are dispensing<br />

elsewhere.”<br />

Nestor’s practice has offered<br />

patients several product lines in recent<br />

years. He also has developed a touchscreen<br />

computer system, called Dermassist,<br />

that guides patients to the<br />

products right for their particular skin<br />

types. Patients who want to buy<br />

something are given a one-month<br />

supply of the item, which they must<br />

pay for out of pocket, since health<br />

insurance doesn’t cover the items. If<br />

the product doesn’t help, Nestor<br />

added, he will work with the patient<br />

to find something better.<br />

While a growing number of dermatologists<br />

dispense cosmeceuticals—<br />

surveys show about 40 percent, Nestor<br />

said—they’re now competing, often<br />

unsuccessfully, with the Internet.<br />

“Some companies and doctors are<br />

looking at this as a quick revenue<br />

source, and that undercuts doctors<br />

who sell them in the office” where<br />

overhead is higher than in cyberspace.<br />

“Patients are coming in saying,<br />

‘You charge me more than what I can<br />

get on the Internet.’”That’s friction no<br />

one wants, he said. As a result, doctors<br />

are increasingly turning to proprietary<br />

product lines that offer brand distinction.<br />

“<strong>The</strong>y make sure it’s a private<br />

label,” he said.<br />

Dr. Kenneth Beer, founder of<br />

Palm Beach Esthetic Center, in West<br />

Palm Beach, FL, has been selling his<br />

own label of skin care products for a<br />

decade. But the label has changed several<br />

times over the years, as Beer struggled<br />

to find a producer with which he<br />

felt comfortable. Usually, the rifts that<br />

forced breakups involved poor packaging<br />

or, more often, weak product and<br />

sales support.“If a company sells you a<br />

product and that’s the last time you<br />

hear from them, and they never come<br />

in to see how things are going, you sit<br />

with inventory, your staff doesn’t want<br />

to sell it, and patients don’t want to<br />

buy it,” he said.<br />

Beer has been buying his current<br />

product line, Palm Beach Esthetic,<br />

from the same New York-based supplier<br />

for the last five years, a relationship<br />

he considers successful. However,<br />

he is about to make a significant shift<br />

away from office-based dispensing by<br />

opening a day spa dedicated to skin<br />

care procedures. <strong>The</strong> move will free<br />

up his office staff members, who<br />

already are swamped with cosmetic<br />

patients and “don’t have the time or<br />

the desire to deal with products,” he<br />

PAGE 2

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