PSI Sets Pace for Animal Health Industry

In just over a decade, Phoenix Scientific, Inc. (PSI), has become the United States' leader in differentiated generic animal health pharmaceutical products. Strategically located in the center of the United States in St. Joseph, Missouri, PSI's primary 110,000-square-foot, state-of-the-art federally regulated cGMP (Current Good Manufacturing Practices) pharmaceutical plant also houses the company's corporate offices.

PSI continues to develop facilities on its 127acre campus, which includes the company's new manufacturing facility dedicated to the production of non-licensed, veterinary sterile rehydration/specialty fluids, such as dextrose, sterile water, and saline solution. The St. Joseph site is also home to PSI's 20,000-squarefoot product development facility, and a 50,000-square-foot controlled environment warehouse with a recent addition/completion of a 104,000-square-foot packaging and labeling facility. The company recently expanded its production capabilities with the acquisition and conversion of an existing pharmaceutical plant into a dedicated 65,000-square-foot penicillin plant in Fort Dodge, Iowa.

From PSI's inception, the company's goal has been to provide veterinarians and producers with the highest quality products at the least cost. Since its first FDA approval of the Abbreviated New Animal Drug Application (ANADA) Ketamine in 1994, PSI has averaged one new approval approximately every 60 days. PSI markets these generic drugs under more than 10 private label or co-label identities. These include virtually every major animal health distributor network, both prescription and over-the-counter, in the United States.

PSI president Kevin Schinze co-founded the company in 1990, after 11 years in the pharmaceutical industry. Schinze had worked with PSI's sister company, Phoenix Pharmaceutical, Inc. when PSI was only a dream. Another one of the company's founders approached him one summer afternoon to ask if he would be interested in building a pharmaceutical plant. He was. Schinze became the primary force behind the design, planning and building all of Phoenix Scientific, Inc.'s facilities, policies and procedures.

A microbiology graduate of Kansas State University, Schinze's management style has proved one of the most efficient in the animal health industry; the company has never laid-off a single employee. In fact, during Schinze's tenure at Phoenix Scientific, Inc., he has built the company from a staff of less than 10 to its current staff of 325 employees. Under his direction, sales have grown to $150 million per annum and, in the last several years, the company has grown by more than 20 percent.

PSI's vice presidents have equally substantial industry experience. Arnold Baker, PSI's vice president of marketing and sales has 26 years of experience in the animal health industry, including 10 years with Boehringer Ingelheim and nine years with Fermenta Animal Health. John Carpenter, PSI's vice president of manufacturing operations, has been in the animal health industry for over 20 years. Phil Garcia, Jr., PSI's vice president of sterile liquids joined the company in 1990, after 22 years of industry experience with companies such as American Veterinary Products, Boehringer Ingelheim Animal Health, and Baxter-Travenol. Robert Gunderson, vice president of regulatory affairs, has had a career spanning 32 years, 10 of them at PSI. Jack Shugart, vice president of product development at PSI, began his career at the USDA, before moving to Ralston Purina and then to the veterinary pharmaceutical industry, where he was involved with product development for 18 years before joining PSI.

The company has a full-time staff of technical service veterinarians who see their primary responsibility as educating consumers about the correct and safe use of the company's products. As veterinarians themselves, they also feel a responsibility to help consumers look out for the welfare and safety of livestock and pets. They investigate product complaints, such as perceived lack of drug efficacy or adverse reactions in animals after administering a drug.

Schinze predicts that the animal health industry will continue to consolidate. The costs associated with drug development and uncertain regulatory outcomes will result in fewer new products. "PSI is well-positioned to take advantage of this trend," Schinze said. "We anticipate being competitive in the arenas of generics and innovative new products. PSI is evolving into a hybrid company that provides innovative solutions for animal health and highest quality products at the best value" •