Hello all,
In order that the following press release can be understood in context of MLSC's May 10QSB filing, I am posting both the 10QSB and MLSC's latest press release.
Press Release
Medical Discoveries, Inc. (OTCBB: MLSC)
In response to various rumors and activity in the public markets, Medical Discoveries, Inc. (OTCBB: MLSC) disclosed that the Company has been actively engaged in a series of discussions with several entities including: capital investment; establishment of a joint venture, creation of a new operating division, product development and distribution agreements. In addition, the company disclosed that it has recieved another patent on it's proprietary compound MDI-P.
The Company announced today the it is in the final process of completing the first two stages of a series of strategic development activities, and anticipates making several difinitive announcements through the filing of SEC Form 8K within the next few days.
Medical Discoveries, Inc. is a development stage bio-pharmaceutical company engaged in the research and development of a new generation of liquid chemical Biocides which have anti-bacterial, anti-fungal and anti-viral properties (HIV/AIDS).
For additional information and or to request an investor information package, please contact the Company's Department of Investor Relations at (801) 771-0523.
May 14, 1998
MEDICAL DISCOVERIES INC (MLSC)
Quarterly Report (SEC form 10QSB)
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
The Company is in the process of establishing a "consumer products" division (MDI Healthcare Systems) as part of its strategy of developing certain aspects of its core technologies for commercialization. MDI recorded its first revenues from its consumer products division for the period from April 1, 1998 to May 15, 1998. MDI reduced its year-to-date general and administrative expense to $112,923 from $161,684 in 1Q1998 compared to 1Q1997 by increased efficiencies in its operations. Funding for on-going operations is discussed in the "Additional Funding is Required" section below.
DEVELOPMENT OF NEW/IMPROVED TECHNOLOGY. During the last quarter, the Company has continued to focus its research and development activities to further enhancing its core technologies. Chief among these efforts (which are in the process of patent applications) is the capability of developing a new generation of consumer products utilizing its "electrolyzed saline waters". These variations of the Company's patented core technologies, and resultant commercially viable products, better enable the Company to aggressively pursue new markets outside of its traditional "pharmaceutical research and development operations" with a wide variety of applications. Included among these new target markets are applications in the newly evolving skin care "cosmeceutical" industry, home water purification, and "bottled waters".
These new markets represent significant revenue generating opportunities for the Company in the near term, and the Company is presently developing the appropriate infrastructure to aggressively pursue these markets.
The Company remains committed to the pursuit of establishing MDI-P as an effective liquid chemical sterilant for the sterilization of surgical instruments, and developing MDI-P as an effective anti-bacterial, anti-viral and anti-fungal pharmaceutical.
PLANS TO FORM A NEW CONSUMER PRODUCTS DIVISION. MDI is in the final stages of establislihig a new operating division focused on the commercialization of products targeted at the health and wellness, cosmetic, home water purification systems and "bottled waters" markets. The products to be marketed by this new division will be a combination of proprietary products internally developed as well as unique products sourced from strategic partners located in the United States and certain international markets.
STRATEGIC ALLIANCE. MDI has initiated discussions with a privately held company specializing in the research, development, and commercialization of proprietary products in the health care industry. It is anticipated that these discussions will conclude in the establishment of "joint venture" health care company focused on the identification, exploration, validation, development and commercialization of new innovative solutions to existing and newly emerging health care problems and opportunities.
MANAGENIENT AND SCIENTIFIC BOARD ADDITIONS. William J. Novick, Jr., Ph.D., Chief Technical Officer was promoted to the position of Vice President, and will serve as an Officer of the Corporation.
Osao Sumita, Ph.D., has joined the Company as Sr. Director, Engineering and Technology Development. Dr. Sumita has spent nearly 20 years in research and development in the field of electrolysis and related technologies. Since 1992 he has been president and founder of Coherent Technologies (Tokyo, Japan) a research and development firm specializing in the development of proprietary electrolysis technology systems. Dr. Sumita received his Doctorate from the Tokyo Institute of Technology, Tokyo, Japan, and is the holder of several patents in the field of electrolysis. In this newly created position, Dr. Sumita will be responsible for technology development and related research activities.
Mr. Neal G. Ofiesh has recently joined the company as National Sales Director, Consumer Products. Mr. Ofiesh has been actively engaged in the sales, distribution and management of sales activities for a number of companies in the field of water purification systems, cosmetics and related consumer products. In this newly created position, Mr. Ofiesh will provide the Company with proven expertise in establishing a national distribution network for the Company's consumer products. Prior to joining the Company, Mr. Ofiesh was affiliated with the MeLaLeuca, Natural World and NSA corporations.
PATENT ACTIVITY. The Company was notified by the US Patent Office that another patent for its MDI-P technology was issued. The patent number is titled "Electrically Hydrolyzed Salines as Microbicides" and is for a microbiocidal solution for in vivo and in vitro treatment of microbial infections. This brings to six the current number of patents issued for the Company's core technologies. Additionally, the Company received notice of allowance of another patent from the US Patent Office for the use of MDI-P "Electrically Hydrolyzed Salines as Microbicides".
JAPANESE MARKET OPPORTUNITIES AND ANALYSIS. MDI is continuing discussions regarding licensing and other business development relationships with several Japanese companies. There is strong interest in the medical pharmaceutical market applications of the Company's proprietary compound, MDT-P. MDI is actively discussing potential alliances with several Japanese companies to jointly collaborate in this area using the Company's patented technologies and drawing on its experience in the medical area with its Scientific Advisory Board.
In December of 1997, MDI was invited to present an update of its research activities at the annual Functional Water Society Foundation in Tokyo, Japan. Dr. Novick, the Company's Chief Technical Officer, presented the results of the research work of Aldonna Baltch, MD and her colleagues at the Stratton VA Medical Center, Albany, New York. Dr. Baltch's in-vitro research activities have confirmed the effectiveness of MDI-P as an efficient anti-fungal compound through the complete destruction of the fungus Candida Albicans.
ADDITIONAL FUNDING IS REQUIRED. MDI needs to raise additional capital to fund its FDA and international regulatory approvals process. Additionally, each of the research and testing programs in progress continues to show promise and generate valuable scientific data, and therefore, requires appropriate levels of funding. Management intends to raise substantial additional funds in private stock offerings in the near future in order to meet its near-term funding requirements with a special emphasis in Japan. In the future, management anticipates the need to raise substantial additional funds in public stock offerings as well. As additional funds are raised, the Company intends to commence paying salaries to its officers. The Company also intends at that time to hire additional technical and administrative personnel. The bulk of any additional funding will likely be spent on continued research, testing, and patent protection with respect to MDI-P.
FUNDING. In January 1998, the Company raised $50,000 in exchange for 270,270 shares of common stock at $0.1875 per share and warrants to purchase 540,540 shares of stock at $1.00 per share.
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