Biomerica Inc. is putting health to the test.
The Newport Beach-based company generates about $6 million in yearly sales making and selling diagnostic tests for hospitals, doctors and consumers. It is expanding its product lines trying to carve a niche in the competitive field.
Biomerica’s tests detect a wide range of health concerns such as allergies, diabetes, colon disease, pregnancy and drug usage.
The company’s tests are sold under the EZ Detect and Fortel brands. A good chunk of Biomerica’s business is making diagnostic tests for other companies that then package and sell them as their own.
Biomerica sells its tests through retailers such as Deerfield, Ill.-based Walgreen Co., CVS Corp. of Rhode Island and Pennsylvania’s Rite-Aid Corp. It taps distributors to sell tests to hospitals and clinics such as Newport Beach’s Hoag Memorial Hospital Presbyterian, Huntington Beach Hospital and clinics owned by Mayo Foundation for Medical Education and Research of Rochester, Minn.
Inside Biomerica’s 25,000-square-foot headquarters, the company’s 30 or so workers develop the key components for its tests. The products are assembled and packaged at Biomerica’s 10,000-square-foot factory in Mexicali, Mexico, where it employs about 20 people.
Biomerica stores its tests in Newport Beach and Mexico and uses outside carriers to ship them.
Competition in the diagnostic test business is tough, according to Zackary Irani, Biomerica’s chief executive.
A handful of companies make tests for the medical industry including heavyweights such as Fullerton’s Beckman Coulter Inc. and Abbot Laboratories of Abbot Park, Ill. Biomerica tries to avoid getting slammed by competitors with specialized products such as its food allergy tests and its over-the-counter colon disease tests, Irani said.
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Diagnostic tests: Biomerica Inc. expanding product lines |
“There’s a lot of competition out there, which makes it hard for a smaller company like us. We’re trying to stand out by carving a niche,” Irani said.
Irani’s uncle Joseph Irani and partner Ishkan Sultanian started Biomerica, then Nuclear Medical Systems Inc., in 1971. It changed its name to NMS Pharmaceuticals Inc. in 1983, about the same time Joseph Irani and Sultanian took the company public and started trading shares on the low profile, over the counter Bulletin Board exchange. The company became Biomerica in 1987.
Like most small businesses, Biomerica had to overcome the challenges of limited money and help. The company also has had to shift its focus by narrowing its product line, Zackary Irani said.
“We had too many products when we started. Over the years we’ve really narrowed our focus down and that’s helped us grow,” Irani said.
Zackary Irani first worked in the company’s accounting department and later climbed his way up in the business, he said. After his uncle died about seven years ago, Irani became interim chief executive,a position that later was made permanent.
While Irani worked his way up in the company, he said finding the right workers that will invest that kind of time is a challenge for the company. So far, Biomerica’s been fortunate to find some recruits from UC Irvine.
“It’s always a challenge to find workers and we’re actively looking for scientists,” he said.
While adding scientists will help the company grow, Biomerica also is staying on top of health concerns, Irani said, to push its expansion. The growing awareness of cancerous diseases, allergies, diabetes and other issues are helping Biomerica reach out to consumers seeking the benefits of early detection tests, he said.
To capture new business, Biomerica is creating more products for the over-the-counter consumer market and clinical market, Irani said. Tests that detect bone and mineral loss, allergies and diabetes are in the works.
Biomerica is also planning to move its headquarters, Irani said. The company has outrgrown its Newport Beach location and is looking for a larger building in a nearby, yet more affordable, OC city such as Irvine or Huntington Beach, he said.
“We’re trying to find the right space for us to grow into,” Irani said.
Nifty Neckwear
Fullerton-based Buttercup Creative is targeting more than $1 million in sales next year with its new accessory line, Necklace Necessities.
Necklace Necessities consists of adjustable and non-adjustable extenders that clip onto necklaces to lengthen them. The extenders come in strands with clasps on each end and are made out of rhodium and plastic. The extenders come in three styles: faux gold, silver and pearl.
When clipped onto a necklace they can add 3.5 to 6 inches in length, giving it a different look and feel.
The company also makes hypoallergenic, adhesive strips that stick onto necklaces so that they stay in place.
Buttercup Creative tapped a South Korean factory to make the materials it uses for its extenders. Employees of Goodwill of Orange County then assemble the extenders in Santa Ana. 3M Co. makes Buttercup Creative’s clear adhesive strips.
Necklace Necessities products are packaged in kitschy, pink and black boxes that look like totes and clutches. Anaheim-based Livingston Unlimited Inc. makes the company’s packaging, and warehouses and distributes its products.
Janis Helfman started Buttercup Creative last year with the help of longtime friend, Cheryl Livingston, who runs Livingston Unlimited.
Helfman always liked wearing necklaces and wanted to be able to change the way they look with different outfits. She always used the same necklace extender for years and when it came time to replace it, she had a hard time finding a new one. So Helfman decided to make her own with a trendy twist.
“Necklace extenders aren’t anything new. But we’ve come out with a girly, trendy update on a classic accessory,” Helfman said.
Getting the business started was expensive and rough, Helfman said. It took the company about a year to get their products designed and made the way they wanted, Helfman and Livingston said. The wait was well worth it, they said.
“Taking the business from concept into something physical was hard. It was all about investing and going forward when we realized that there was a point of no return,” Helfman said.
It took a lot of patience and commitment, Livingston said.
Right now, it’s just the two of them running the show. Helfman is chief executive. Livingston is director of distribution.
The two spend a good chunk of their time at trade shows and contacting buyers so that they can get the word out about Necklace Necessities. Somewhere down the line, Helfman said she’d like to hire more workers.
Helfman and Livingston said they see a lot of growth potential for their business, particularly in the plus-size and the bridal and formal accessories market.
So far, Necklace Necessities can be found in 22 stores in 11 states, including Bartholomew & Co. in Fullerton and Cartel Hair Salon in North Tustin, Livingston said. The products are also sold on the company’s Web site.
Buttercup Creative is looking into selling products on QVC and is flirting with the idea of celebrity gifting, Helfman said.
Tech-y Takeout Startup
Darren Testa and Bryan Gadol were tired of waiting in line when they ordered food to go and figured other people might be too. That’s why they started Live On The Go Inc.
The Costa Mesa-based company runs a free Web site called liveonthego.com, where people can place and pay for takeout orders at more than 120 upscale and casual OC restaurants including Irvine’s Tal & #233;o Mexican Grill, Ten Restaurant and Tradition by Pascal, both of Newport Beach.
The company’s goal is to cut wait time and bring accuracy back to the takeout order, according to Testa.
“We’re trying to get people in and out of that restaurant in less than two minutes flat,” Testa said.
On liveonthego.com, customers can search for restaurants based on menu and proximity. They can place their orders for takeout or delivery, depending on the restaurant. All of the restaurants listed on the company’s Web site don’t charge extra fees, Testa said.
The Web site has a memory function that allows customers to look up items that they’ve ordered in the past. It also offers corporate accounts, which help customers arrange luncheons with spending limit options, group and individual payment processes and customized orders through a pre-organized menu.
Testa and Gadol started the company last February. It took them about two years to develop liveonthego.com, Testa said. Both used their own money and turned to family and friends for funding.
Before starting liveonthego.com, Testa was the chief operating officer and chief financial officer for Torrance-based American DataMed, a national document management company. Gadol was and still is a corporate and securities attorney at Greenberg Traurig LLP’s Irvine office.
Testa is president and chief executive. Gadol is chairman.
Liveonthego.com is sort of like a restaurant’s back office. It takes and processes takeout orders for restaurants that don’t have the time to take the orders themselves, Testa said. The company processes and sends their orders directly to the restaurant through fax, e-mail, text message or directly to their point of sale equipment for a fee with every transaction, Testa said.
Testa is mum about how much the company has generated in sales since he and Gadol started the company. He did indicate that liveonthego.com has three full-time workers and about 10 part-time employees.
So far the company’s had interest from outside investors but neither Testa nor Gadol are interested in taking the company to that level just yet, he said.
“Right now we’re just focused on signing up more restaurants so that we can expand in other regions outside of Orange County,” Testa said.
