In 1930, Emanuel Stolaroff, started a small company called Natone. Soon, it grew into a larger business, and he started expanding it into retail markets. Stolaroff met Belgian chemist Edmond Fromont in 1954, and acquired the rights to distribute his patented formula of a mild clear soap that cleared the skin, without drying it, in the US. By then Lloyd Cotsen, had entered the Stolaroff family by marrying his daughter Joanne Stolaroff. In 1962 the company name was officially changed to Neutrogena Corporation; Cotsen became president in 1967.
The company listed publicly on the NASDAQ in 1973, with a market value of $11 million. Cotsen started marketing soap through 2 major channels: dermatologists and luxury hotels. Neutrogena managed to stay clear of any major pricing wars, like those of other big corporations of that generation. It launched product lines in acne and anti-ageing areas. In 1982 profits reached US$3 million, and Cotsen was named the CEO.
In 1994 Johnson & Johnson acquired Neutrogena for $924 million, at a price of $35.25 per share. Johnson & Johnson's international network helped Neutrogena boost its sales and enter newer markets including India, South Africa, and China. Priced at a premium, Neutrogena products are distributed in over 70 countries. The company has major subsidiaries in Canada, UK, South Korea and India. |
