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nole92

05/21/10 9:28 AM

#3330 RE: eddiebali #3329

It appears that XCHO has learned a few things from the Sunpill.

PROS: Xenacare was successful in getting the Sunpill into the major retailers and did spend several millions on advertising.

CONS: There was a lack of demand for the product and XCHO did a poor job of negotiating the deal. They did not have high enough margins to make a profit on the deal. Eventually they ran out of money to continue the advertising campaign and the product wasn't selling on it's own.

They have done a much better job with the Cobroxin deal. Their margins are around 70% on a higher end product. Operating costs are low, and they made a profit in their first full quarter of sales.