Posted on: Thursday, May 31, 2001

New liquid bandage could hit stores in 2002

Associated Press

RALEIGH, N.C. — A liquid bandage for treating minor cuts could be in supermarkets next year following a deal between a North Carolina medical company and Johnson & Johnson.

Closure Medical has agreed to give worldwide distribution and development rights to consumer-products giant Johnson & Johnson for a liquid adhesive that can be applied to small cuts to stop the bleeding and protect them from infection.

Raleigh-based Closure plans to start shipping the product, called Liquiderm, later this year. Johnson & Johnson is expected to start stocking shelves in stores by the beginning of 2002.

Closure introduced a wound-closing adhesive called Dermabond to hospitals two years ago but initially struggled to persuade doctors to switch from sutures to an adhesive. The company expects sales of Dermabond, also distributed by Johnson & Johnson, to jump 35 percent this year.

Although Dermabond wasn't an overnight success, analysts say a liquid bandage might be easier to market to consumers than to hospitals.

"Dermabond is aimed at a totally different market," said Katherine Martinelli, an analyst for Merrill Lynch Global Securities.

Johnson & Johnson is still developing a marketing campaign for the product and hasn't decided yet what to call it.

Closure, which lost $1.5 million last year on sales of $13.1 million, is predicting that revenue will reach $18 million to $20 million this year, boosted by improved Dermabond sales, as well as the start of sales of Liquiderm and Soothe-N-Seal, which is used to treat mouth sores.