.5 c
SECRET
SOUZA CRUZ GROUP
TRANSDERIVIAL NICOTINE
MAY 29th, 1992
Despite technology for transdermal administration
of ethical
I? harmaceuticals having been in use for over ten
years in USAr
it has never been marketed in Brazil. Available
information
about this subject comes from scientific
literature and also
from articles in magazines and newspapers.
Tn December 1991 an article about the subject was
published
in "Veja", the most important magazine in Brazil.
This
article resumed these products and techniques used
in USA as
a way to help smokers to quit the habit. It was
also
mentioned in this article that Ciba Ceig asked
federal
health authorities for authorization to launc a t
ransdermal
icotine patch in Brazil. Until now they were n ot
successful
in obtaining this authorization.
Three. other articles were published in April
1992, in other
magazines and newspapers, mentioning the three
major
companies and products such as Ciba Geigy
(Harbitrol),
Marriew Merren Dow (Nicoderm) and Amer4can Cyanami
(Prostep). All these articles mentioned the size
of the
U.S.A. market and that US analysts believe in 1995
this
market will be around US$ 1.0 billion. With the
information
we have, it seems that from the technical point of
view, mass
production of these products is possible to
support this
v0 lume growth in USA.
IS THE STOWIC PATCH A SIGNIFICANT TECHNICAL
ADVANCE AND IS IT
LIKELY TO BE DEVELOPED INTO A SALABLE PRODUCT FOR
KASS
MARKETS
Scientific publications indicate that in terms of
technology,
the product developed by "Stowic Resources Ltd."
shows a
considerable advance against its c ompetitors, as
nicotine
de4*ver . radual, avoiding the negative effects of
dermal
y is g
irritation, which is very common in other similar
products.
In fact, these products are being clearly
positioned in the
market as "medic ines", which are able to.reduce
the symptoms
of nicotine dependence such as anxiety,
concentration
difficulty and irritability, very commom amongst
people who
are trying to break the smoking habit.
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BATCo document for Province of BritiSh Columbia 26
October 1999


DOES THE PATCH REPRESENT A SIGNIFICANT THREAT TO
THE TOBACCO
INDUSTRY ?
As known, smoking and health controversies are
gFowing
considerably and the number of smokers trying to
gave up
smoking is increasing worldwide. Therefore, this
kind of
product will tend to be tried and depending on its
effectiveness, should become a considerable sized
market.
The tobacco industry should consider these
products as a
threat, as they could help smokers to quit the
habit, but not
as a definitive substitute for cigarette th will
never
offer smokers attributes such as organosl:;tic:T
sensations
and.image support, which are very important in the
individual
decision on smoking.
Even if this market were to grow considerably, we
believe
these type of products are not aviable option to
be exploited
by B.A.T., due to this type of product being
diametrically
o?posed tco.theo Com any's main business focus -
explointing
t e world t acc maNet.
WHAT SHOULD BE THE REACTION, IF ANY, BY B.A.T.
INDUSTRIES ?
In view of the above consideration, the best route
for B.A.T.
to prepare itself to face this type of product and
also new
ones, whichiw4ll probably be introduced in the
future, is by
directing pr orities and incentive towards the
development of
safer cigarettes, e.g. cigarettes which maintain
flavour,
taste, mechanical and visual characteristics of
existing
products, but with benefits to consumers such as
lower
sidestream, less strong smoke aroma and lower
quantities of
controversial substances in the smoke.
MTEHM2
HMA.PE1178
15/05/92
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BATCo document for Province of BritiSh Columbia 26
October 1999