Juvenon was every entrepreneur's dream, and every entrepreneur's nightmare.
The Incline Village company was nearly swamped beneath a massive number of orders shortly it began selling direct to consumers five years ago.
Recovered and restocked, it's now working to develop additional sales channels.
Juvenon enjoyed a deluge of national publicity in 2002 when Dr. Bruce Ames released findings from a 15-year research project at University of California, Berkeley, about a combination of chemical compounds that made old rats act young again.
Ames and a colleague had launched Juvenon as a vehicle sell the formula.
Newspapers and magazines trumpeted the findings as an aging breakthrough. Following a story in Reader's Digest, the entire supply of Juvenon sold out, says Nathan Hamilton, who today serves as the company's chief executive officer.
"The company didn't have time to develop a sales plan," says Hamilton. "People just started hitting the press."
That's not uncommon in the nutritional supplements business, a field easily plowed by those with more marketing savvy than biology smarts, says Hamilton.
"Anyone can claim to be a health expert. They may not be good scientists but they're good marketers," he says.
These days, Juvenon is working to become a better marketer by opening retail and direct-mail channels to supplement the on-line sales of its product, which is priced at $34 for a one-month supply.
"We want to grow our brand," said Hamilton, on location filming a television commercial in Hollywood, Fla. In addition to broadcast commercials and print ads, the marketing plan for the next two years includes direct mail pitches to consumers who already order nutritional supplements.
"Juvenon is seeking a partner to go to retail with," Hamilton adds, "Because it's hard to get shelf space with a single product in the food drug and mass channel."
And the company has introduced a product for pets. It will be sold initially through veterinarians and then later, retail.
Hamilton, who became the company's CEO in 2006, holds a physics degree from Berkeley and a master's in business administration from Harvard.
He sold his first biotech company at age 32 and went on to found or buy a company a year on average. He's also CEO of Archangel Bioventures, an angel investment firm.
Hamilton operates out of his home at Incline Village. The location, while a great place to live, poses some challenges for a company, he says. Tahoe's high cost of living makes it difficult to find and hire employees. However, the remote nature of the area builds a loyalty tied to community.
The company has just two fulltime employees.
"A modern business needs few employees," Hamilton says. Contract manufacturers in Los Angeles and Salt Lake City handle production.
Juvenon pays royalties to the University of California, Berkeley, owner of the patent, for which Juvenon holds the exclusive license.
Thirty investors own shares in the company, ranging from a full quarter down to a tiny fraction.
The company debuted debt-free because the $15 million in initial research at Berkeley was funded by a government grant.
"Customers tend to stay on Juvenon for a long time, rather than switch from one trendy product to the next," says Hamilton. "We're really good at keeping the customers."
