07/12/2009
ReGen Therapeutics Plc (AIM:RGT) are pleased to announce that at the General Meeting held today all Resolutions were passed.
The Board also felt it was appropriate to give an update on the encouraging position of the Company at this date and reported to the meeting as follows:
1. Turkey
We are pleased to report that Eczacibasi now expect the Government to give final labelling approval for their ‘Dyna’ version of Colostrinin™ by the end of December 2009 and for the full commercial launch in Turkey to take place in February 2010. We would remind Shareholders of the financial terms of the Turkish agreement which are: On Government approval, Eczacibasi will pay ReGen a $50,000 milestone payment and net revenues to ReGen from Eczacibasi, pursuant to the minimum annual purchase commitments in the Distribution Agreement, are estimated to be $52,000 in the first year, after regulatory approval is obtained, and $104,000 in the second year.
2. India
ReGen has a Material Transfer Agreement in place with an Indian company, which is currently working on producing a tablet for the Indian market. Should this work be successful it would lead to a full Licensing and Distribution Agreement being signed for India. We would comment that India with a population of 1.1 billion represents a very significant market where self-medication is a normal feature of medicine.
3. South Korea
Following our recent discussions in London with two senior executives of a major South Korean company, we are now negotiating the final terms of a contract to distribute Colostrinin™ in South Korea. We believe this company would have the marketing power to fully exploit the sales potential of a product based on Colostrinin™.
4. China
Our contacts through a technology transfer company, sponsoring innovation in China from the UK, has led to us signing a Confidentiality Agreement with a leading Chinese pharmaceutical company to explore the possibility of marketing Colostrinin™ in China. With a population of 1.3 billion, nearly one fifth of the world’s population, China also represents a very significant market for Colostrinin™. Like India, China also self-medicates and as we are well aware is an important market for alternative therapies.
5. Existing Markets
i. USA and Canada
Development in the USA has not been as rapid as we had hoped but we believe the takeover of Metagenics by Alticor/Amway, the large consumer products marketing organisation, will lead to our product being more widely promoted, outside of the relatively narrow marketing strategy of the original Metagenics design. Metagenics advise us that they are currently working on positioning the product in the USA and Canada and expect to carry out a substantial relaunch of the product in 2010.
ii. Australia
In August 2009 the Australian Quarantine Inspection Service (AQIS) announced a review of the regulations governing all colostrum-derived imported goods. In consequence, there are a large number of products, including new supplies of Colostrinin™, currently being held up awaiting customs clearance. We understand that Health World Australia Limited is out of stock of Colostrinin™, so are understandably as frustrated as we are about the inevitable effect the delay is having on their sales, and are working hard with the relevant authorities to overcome the problem.
iii. Poland
Sales in Poland are proceeding as expected at the time of signing the original Test Marketing Agreement in November 2008.
iv. Cyprus
Golgi has had a significant marketing campaign in Cyprus despite some consumers experiencing problems with tablets discolouring. New packaging is urgently being developed to address this problem. A new marketing drive is planned to coincide with its introduction.
v. UK
MemoryAid was successfully launched in September and we are very pleased that Colostrinin™ is finally available in our home market. We understand that PRG Nutraceuticals are now planning a press campaign to heighten awareness of the product in the wider market.
6. Zolpidem
Dr Ralf Clauss presented a study conducted in Pretoria, South Africa on zolpidem at the 4th International Congress on Brain and Behaviour on 3 – 6 December 2009 in Thessaloniki, Greece. This study using SPECT scanning showed that zolpidem significantly improves the cognitive and motor performance of subjects with brain damage. This important finding was sponsored by the South Africans who intend to do a further study on zolpidem in 2010. Thus, whilst ReGen is not spending money on developing the product further the South African community is providing more and more information to make the case for a licensing deal. We are also investigating the possibility of obtaining grant aid to progress the zolpidem project.
We should also point out that both of the companies that we are dealing with in South Korea and China have expressed interest in zolpidem.
7. Colostrinin™ Derived Peptides
Whilst there has been a temporary halt in the development of the peptides we are discussing further work with the University of Texas Medical Branch, Galveston and continuing to seek potential licensees and grant support.
8. Obesity
We reiterate that a major Global Company is planning to do an animal study with Colostrinin™ in 2010. If successful this may lead to them licensing rights to develop the ingredient for use in a ‘weight-loss’ range of products.
For further information please contact:
Percy Lomax
ReGen Therapeutics Plc
Tel No 020 7153 4920
Roland Cornish/Felicity Geidt
Beaumont Cornish Limited
Tel No 020 7628 3396
Nick Bealer/David Scott
Alexander David
Tel No 020 7448 9820