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Alda Soars on 2010 Olympic Contract as J&J Withdraws (Update2)
By Doug Alexander

Nov. 11 (Bloomberg) -- When Johnson & Johnson, maker of the Purell hand sanitizer, ended its run as a worldwide Olympic sponsor a year ago, Alda Pharmaceuticals Corp. saw a chance to fill the void.

Alda, with 10 employees in the Vancouver suburb of New Westminster, signed a contract in July to be the official supplier of hand sanitizers for the 2010 Winter Olympics. The stock has soared.

“That really gave us instant credibility,” Alda Chief Executive Officer Terrance Owen, 63, said in an interview. “That’s how the whole thing took off, and it’s snowballed from there.”
Alda more than doubled since July 15 and surged almost sixfold since the start of the year when the company traded at 11 cents. Alda fell 2 cents to 65 cents at the close of trading today on the TSX Venture Exchange in Toronto.
The T36 Antiseptic Hand Sanitizer was developed as a spinoff from the company’s disinfectants in April, when an outbreak of swine flu emerged in Mexico and the U.S. and started spreading. The H1N1 influenza has since become a global pandemic, creating a surge in demand for flu-prevention goods such as hand sanitizers.

Alda, a 13-year-old company that first sold shares to the public in 2003, has seen demand “increase dramatically” for its newest product, according to Owen. It signed a supply deal with Loblaw Cos.’s Asian grocery chain T&T Supermarket last month, and is seeking to put it in drug stores across Canada.

Doubled Staff

The company doubled its staff from a year ago, hiring three salespeople, a manager and administrative assistant. Alda is also seeking approval to sell the product outside Canada, in countries including Australia, the U.K. and the U.S.
Sales of hand sanitizers in the U.S. for the year ended Oct. 3 jumped 23 percent to $180 million from a year earlier, according to The Nielsen Co., which tracks consumer markets. In Canada, where hand sanitizers are a C$25 million ($23.7 million) business, sales are up 44 percent from a year ago, Nielsen said.

Messages left with Johnson & Johnson spokesman Marc Boston weren’t returned.

Alda, whose disinfectants were originally developed for hospitals, dental clinics and medical labs, is anticipating a “substantial” order tied to the Winter Olympics, held in Vancouver and Whistler starting Feb. 12. Games organizers may buy dispensers and bags, and “tens of thousands” of 60- milliliter (two-ounce) bottles to give away in gift packs for athletes, volunteers and the media, Owen said.

Canadian Roots

Alda’s British Columbia roots may have helped it win over Games organizers in getting the contract, he said. Alda makes its hand sanitizer at a plant in Surrey, which has ramped up production.

“The fact that we are local and small and use local suppliers and are nimble on our feet certainly was in our favor,” Owen said.

Alda aims to use that Olympic exposure, combined with the swine flu pandemic, to turn the money-losing business with a market value of C$33 million into a profitable company. Alda had a loss of C$1.18 million on revenue of C$282,261 for the year ended June 30, according to regulatory filings.
“We’re in the middle of a perfect storm here,” Owen said. “We just have to get our product out there and get it into as many hands as possible.”

To contact the reporter on this story: Doug Alexander in Toronto at [e-mail]
Last Updated: November 11, 2009 16:26 EST


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