First and foremost: Adhesive patches: LecTec Corp. (H&BA Vendor Outlook 2002).

MINNETONKA, Minn. -- If there is one word that best characterizes LecTec Corp. it is innovation. The company was founded as a manufacturer of surgical tape, sheet hydrogels, and medical electrodes.

In 1996 LecTec began developing topical delivery patch products. Over the last two years, however, it has exited the tape and hydrogel businesses in order to concentrate on the field it entered in 1998: manufacturing topical adhesive patches.

Although patch therapy had been widely used in Asia for many years, it was largely unknown to Americans when LecTec entered the field four years ago. But that situation has changed dramatically. "In 1998 there were 10 patch products doing about $7.1 million in sales," recalls Tim Quinn, manager of consumer brands. "Today there are about 59 patch products generating about $47.5 million in sales--a 590% increase."

With 25 of the 59 products now on the market, LecTec can reasonably claim to be the North American patch therapy expert. That does not mean, however, that the company views its position with complacency. On the contrary, it has aggressively taken on the role of pioneer in introducing patch technology into a succession of product categories.

LecTec's TheraPatch brand first debuted in the external analgesic segment with the TheraPatch Cool and TheraPatch Warm products and in the cough/ cold segment with TheraPatch Vapor products. It then introduced patch therapy to the anti-itch category with TheraPatch Anti-Itch for Kids and TheraPatch Anti-Itch Outdoors. Versions that target the effects of psoriasis, cold sores and fever blisters, and headache and fever then followed.

Last month the supplier debuted an aromatherapy product, TheraPatch Sinus & Allergy. It targets the 54 million allergy and sinus sufferers in the United States by offering a drug-free alternative that contains aromatic vapors and natural oils that promote easier breathing and reduce nasal discomfort, including eucalyptus oil, peppermint, sweet basil and rosemary.

The product is well positioned to tap into the aromatherapy market, which is projected to reach $800 million by 2003 and is growing at an annual clip of 13.5%. TheraPatch Sinus & Allergy also appeals to those Americans who prefer to try alternative therapies--a group that grew from 33% of the population ...