Hi Dan
I have received a copy of the Dairy Foods Magazine article about Basics Plus. I will post it here for you.
KEFIR and COLOSTRUM BEVERAGE
This past December, a small Chicago-area dairy specializing in the manufacture of kefir for national and international distribution, together with a biopharmacuetical company with roots in the Minneapolis-based cooperative Land O'Lakes, introduced the first U.S. milk-based, refrigerated dietary supplement: Basics Plus(tm). Lifeway Foods, Skokie, Ill., and GalaGen Inc., Arden Hills, Minn., had agreed only seven months earlier to co-develop and promote this creamy, smooth, fruit-flavored and slightly effervescent drink. The companies were committed to this venture, and dedicated substantial efforts to get the product to grocers' refrigerated dairy cases by the end of the year.
As America's leading supplier of the fermented dairy beverage kefir, and with strong beliefs in the probiotic benefits of active kefir culture, Lifeway's Pres. and CEO Michael Smolyansky recognized this opportunity with GalaGen and took it. "Research indicated that kefir worked symbiotically with the colostrum antibodies GalaGen isolates from dairy cows. We wanted to develop a drink to pass these benefits on to consumers," he says.
"Basics Plus is intended to support the body's natural microflora and to maintain gastrointestinal health, thus supporting the immune system. This product is targeted to all health-conscious consumers, especially those with weakened immune systems," Smolyansky says.
Robert Hoerr, Pres. and CEO, GalaGen, says, "Basics Plus is the first mainstream product to contain natural components prepared from the colostrum of dairy cows. It's also the first dietary supplement to be sold in grocers' refrigerated dairy cases.
This type of business partnership, between dairy and biopharmaceutical company, is unique and may represent the wave of the future. "We feel this is a revolutionary product that is going to pave the way for other unique dietary supplements, which we are currently developing," says Smolyansky.
GalaGen's primary business is focused on developing anti-infective drugs for intestinal diseases. The company uses a proprietary process to isolate poyclonal antibodies from bovine colostrum,the milk collected from a dairy cow in the first few days after its calf is born. GalaGen currently has access to about 250,000 dairy cows at more than 4,000 Grade A dairy farms in the LOL cooperative system.
When polyclonal antibodies are administered orally to humans, they can provide passive immunity within the gastrointestinal tract. Because the antibodies are derived from cows milk, they do not represent new chemical compounds with uncertain toxicity, rather they are components found in widely consumed dairy foods.
The antibody components used in the manufacture of Basics Plus have been branded with the name Proventra(tm). Basics Plus, along with all other future dietary supplements and nutritional products formulated with Proventra, will sport the logo.
Lifeway is responsible for manufacturing and marketing Basics Plus and GalaGen provides the technical support for claims, which the product is able to make on its label because it is classified as a dietary supplement.
As a dietary supplement, Basics Plus is regulated by the Dietary Supplement Health and Education Act (DSHEA). Dietary supplements are categorized as providing nutritional support for the structure and function of the human body.
Basics Plus' back label states its recommended use is as a dietary supplement. A one-cup serving contains 140 calories and no fat.
That's the article, it also has a picture of two bottles of Basics Plus, they have nice looking labels.
It is interesting that GGEN is trading at its cash level. I don't know what their cash burn rate is going forward but for the first 9 months of 1997 they used up $1.75 million. GGEN doesn't have any revenues either. However that should change now that Basics Plus is on the market. A test market that is, so I don't expect much impact on revenues for a while. I wish I knew when the clinical products are going to be launched. Do you have any info on that?
From their 3Q 10Q it says the following:
As
discussed above, the Company expects the research and development expenses to
increase for the three month periods ended December 31, 1997 and March 31,
1998 due to the expenses associated with increasing enrollment and data
analysis associated with the Diffistat-G clinical trial and nutritional
product development, and thereafter the expenses for the three month periods
ended June 30, 1998 and September 30, 1998 are expected to decrease to levels
experienced for the three month period ended September 30, 1997.
I take that to mean that they expect the modified clinical trials on the functional foods to be finished sometime in the 2nd quarter 1998. So hopefully that means the new clinical products with Lifeway will be released sometime before the end of the 2nd quarter.
With their drugs being several years away from a possible FDA approval, it would seem that the medical foods and supplements they are developing are what will get this company going over the next few years. The $1.5 million they raised in Nov. is primarily for these products. If you hear any news about the co-developed products I'd appreciate it if you'd let me know.
Mark |
