Advanced Plant Pharmaceutical (OTCBB: APPI) www.advancedplantpharm.com
Current Quote (as of 12/12/03): Bid .025 -- Ask .026
Target Price in Twelve Months $0.19
Average Daily Trading Volume 5,694,909
Market Capitalization $12.4 million
Investment Highlights
Very modest market capitalization of $12.4 million for a company with proprietary technology, patented products and the first aggressive marketing campaign in the company's history ---in a rapidly growing industry.
Managment expects to see earnings of .015/share for fiscal year 2004
If APPI reached a market capitalization of $89 million, assuming the same number of shares outstanding, APPI stock would be valued at $.19 per share.(See Market Cap Comparison below). As the planned aggressive marketing campaign of Lo-Chol (TM) converts to projected rapidly increasing sales, along with an aggressive rollout of Sinusol during this winter's flu season, this target valuation could prove very conservative as investors begin to become aware of the new APPI
APPI's cholesterol-lowering nutraceutical, Lo-Chol(TM), is to be sold soon in a national TV infomercial/ad campaign, hosted by veteran television personality and spokesman, Mr. Ed McMahon and a radio marketing campaign run by Nutralife Pharmaceuticals (NP). The marketing agreement specifies that NP will produce and air a radio commercial for Lo-Chol(TM) and will produce and air a Lo-Chol(TM) TV infomercial --with ALL marketing expenses borne by Nutralife Pharmaceuticals
Due to clinical studies conducted with Lo-Chol(TM), the marketing campaign, which will highlight these clinical results, is expected to result in a rapid growth in sales and profits (see below)
Sales momentum has already begun with European distributors for Spain, Portugal, Germany and Greece signed up and a US Internet distributor representing initial orders for a total of 25,000 bottles of Lo-Chol ordered. Additional dirstributors In Europe and Asia are anticipated to be announced inthe near future.
Dr. Jie Wang was appointed as head of APPI's Scientific Advisory Board. Since 1994, Dr Wang has been the Assistant Professor for the Division of Circulatory Physiology and The Heart Failure Center at Columbia University Columbia-Presbyterian Medical Center. Dr. Wang will assist in the design of the Lo-Chol clinical studies. In addition, Dr. Wang will provide assistance after the clinical studies begin at a number of prestigious U.S. hospitals
Lo-Chol(TM) is a unique, proprietary supplement that is produced utilizing APPI's patent pending "Whole Plant" process, which develops whole plant pharmaceuticals and nutritionals. Patients with high cholesterol who experience the worst of the documented side effects that many prescription cholesterol-lowering drugs cause often seek alternative, natural supplements such as Lo-Chol(TM). This non-prescription market is approximately $250 million for the U.S. alone and is rapidly growing as a percentage of the overall $20 Billion prescription cholesterol-lowering U.S. market. A recent National Institute of Health (NIH) study reports that up to 101 million of the U.S. population has borderline high cholesterol--a market that may be addressed by non-prescription supplements such as Lo-Chol(TM).
Filing for a composition patent for the formula of APPI's homeopathic allergy and sinus spray, Sinusol (TM) with the United States Patent and Trademark Office (www.uspto.gov). This patent filing for Sinusol(TM) enhances Advanced Plant Pharmaceutical's patent portfolio. By building an intellectual property asset portfolio, APPI demonstrates the unique nature of its products along with building barriers to entry by any competitor. According to the Asthma and Allergy Foundation of America (http://www.aafa.org), the allergy and sinus market is large, with more than 60 million people in America with asthma or allergies. Chronic sinusitis, sinusitis that persists for at least 3 weeks, affects an estimated 32 million people in the United States. Allergic rhinitis (allergic nasal symptoms) affects more than 20% of all Americans. In the United States alone, the cold, allergy and sinus medicine market totals $1.86 Billion annually.
Trend towards all-natural alternative medicine options benefits companies like APPI
Patented technology (U.S. Patent and Trademark Office: uspto.gov, Patent # 5,707,631) is barrier to entry of competitors.
Advanced Plant Pharmaceuticals, Inc. (APPI) focuses on the research and development of plant-based dietary supplements. The Company has a patent pending process that utilizes whole plants to manufacture all natural dietary supplements. APPI uses this process to manufacture products, which the company plans to distribute worldwide through various sales distribution contracts or majority-owned spin-off companies. Current products include Sinusol (homeopathic allergy and nasal spray), Garlic, and the patented Lo-Chol(TM).
In 1999, the US Nutraceutical Advisory Group valued the global nutraceuticals market at US $65 billion. Vitamins, minerals and herbal supplements together form the largest and most well-known segment of the nutraceuticals market - about 56% of total sales. When factoring in the pharmaceutical markets for indications such as high cholesterol, the potential expands exponentially. The cholesterol market alone in the U.S. is estimated to be more than $15 Billion annually. Advanced Plant Pharmaceutical (APPI) is currently a small player in this huge market, with several unique advantages compared to the majority of the nutraceutical market players.
Market Capitalization Comparison
Nutraceuticals (NUTR) Recent Price (as of 12/10.03) $12.20
52 week trading range $5.65 - $14.64
Current Shares Outstanding 11.6 million
Current Market Capitalization $139.2M
Nutraceutical International Corporation is a manufacturer and marketer of nutritional supplements and natural foods sold to health and natural food stores. The Company sells its non-preprietary products to health and natural food stores in the United States, and to distributors and stores worldwide. The major difference to be considered when comparing market capitalizations of companies similar to APPI is that there is no DIRECT comparison available. One of APPI's major products (Lo-Chol) was developed using patented technology--a patent owned by APPI--and went through a series of clinical studies. In addition, the FDA assigned an Investigational New Drug number to ACA. There is NO OTHER DIETARY SUPPLEMENT COMPANY that is based on proprietary technology--most competitors offer only "me-too" products that are differentiated by marketing muscle, rather than true efficacy differences attested to by clinical studies.
In this regard, APPI is closer to a pharmaceutical company, rather than a nutritional supplement company. Pharmaceutical companies, for example, that market cholesterol-lowering drugs such as Lipitor and Mevacor, benefit from patent protection after FDA approval. APPI's Lo-Chol has the potential to follow this same path, leaving behind genreric, all-natural "cholesterol-lowering" supplement competitors.
The benefits of the APPI proprietary pharmaceutical grade process:
Process is accepted by the FDA in a commercial IND (investigational new drug).
Guarantees a standardized pharmaceutical grade product in its' original natural chemical formation.
Eliminates bacteria and free radicals without residues, chemicals, etc.
Leaves almost all the phyto-chemicals and active ingredients in the plant.
APPI Products:
----Lo-Chol(TM) --Patented cholesterol lowering agent. Lo-Chol has been proven in human clinical studies to:
Reduce cholesterol up to 58%
Lower triglycerides up to 45%
Increase good cholesterol (HDL) 60%
Improve HDL/LDL ratio by up to 46%
Patients with high cholesterol who experience the worst of the documented side effects that Lipitor and other cholsterol-lowering drugs cause often seek alternative, natural supplements such as Lo-Chol. This non-prescription market is $200 million for the U.S. alone and growing. A recent National Institute of Health (NIH) study reports that up to 101 million of the U.S. population have borderline high cholesterol--a market that is addressed by non-prescription supplements such as Lo-Chol. Yet, Lo-Chol is unique in that the company has been issued a patent (http://www.uspto.gov ) for its "Whole Plant Pharmaceutical Process" technology.
--Sinusol(TM) --- A homeopathic allergy and sinus spray Sinusol offers safe and effective temporary,yet rapid, relief of sinus pain and nasal congestion for hours without drowsiness and deemed non-habit forming. Tertiary uses are for sore throats and as a gargle for hoarseness and laryngitis |
