Rubber glove and condom maker Ansell will use its expertise in protection to safeguard profits from its “natural feeling” SKYN brand condoms, which are at risk from a competitor product made by larger rival Durex.
In a claim filed in the Federal Court, Ansell has argued that global consumer goods maker Reckitt Benckiser, which makes Durex condoms as well as other well known brands such as Nurofen, Dettol and Mortein, has breached the patent behind its innovative prophylactic.
Ansell has argued that global consumer goods maker Reckitt Benckiser, which makes Durex condoms, has breached the patent behind its innovative prophylactic. Photo: Nic Kocher
Ansell released its SKYN range in 2008, hailing it as the world’s first ever polyisoprene, non-latex condom. The key selling point is the product has a thinner, more natural feel than its latex rivals, which make up the bulk of the global $6 billion condom market.
In 2009, the healthcare company applied for a patent that detailed the qualities of its new synthetic material. The patent was granted in September 2012 and outlined claims including that condoms made from the material could stretch to just over 9-times their original length before breaking.
Ansell released its SKYN range in 2008, hailing it as the world’s first ever polyisoprene, non-latex condom. In 2009, the healthcare company applied for a patent that detailed the qualities of its new synthetic material. The patent was granted in September 2012.
Ansell argued that a “a competitive, non-latex condom” launched in 2013 under the RealFeel brand by Reckitt Benckiser, which now calls itself RB, breached a number of the claims in the patent.
The case could have implications for Ansell’s competitive position. Although its Lifestyles branded condoms are strong sellers in Australia, around the world it is a smaller player in comparison to Durex. RB sells many more products to supermarkets which can help it to lock in more shelf space than Ansell, which just sells condoms and dishwashing gloves to consumers.
The sexual wellness division is Ansell’s worst performer when compared to its business units that supply protective equipment to businesses. Management is often grilled about options for selling the sexual wellness business, but SKYN could finally deliver some pleasure for investors. While revenue for the division fell 7.4 per cent to $US213 million in financial 2014, SKYN sales rose 22 per cent.
The $3.3 billion company said SKYN had sold strongly in Australia, New Zealand, Brazil, Poland, France and the UK. Earnings before interest and tax got a $5 million boost from the high margin product, CLSA analyst Zara Lyons said in a note, however this was offset by destocking of other branded goods in Europe and poor tender sales for 2014-15. Ms Lyons estimated that SKYN represents 3 per cent of Ansell’s $1.7 billion in annual revenue and is one of its top six major branded ranges.
In a statement the general manager of Ansell’s sexual wellness unit, Jeyan Heper, said the company was prepared to defend its innovation. “The company has made significant R&D [research and development] investments in this technology and related patents and this lawsuit seeks to protect these investments,” he said.
Ansell is seeking damages for lost profits and also wants the court to order RB to stop selling Durex RealFeel condoms in Australia and destroy its stocks.
RB declined to comment while the case is ongoing.