Revenues from sales of ColostrininTM for the year to 31 December 2012 were £65,000. For comparison purposes previously reported sales were £104,000 for 2011, £187,741 for 2010 and £56,055 for 2009.
While it appears that overheads have gone up from last year (2012 – £197,000 : 2011 – £170,000) it must be borne in mind that the 2011 comparative figures do not represent a full year and are only those from the effective date of de-merger on 18 February 2011. It should also be noted that within this figure there are non-cash items of £109,000 compared with £73,000 in 2011. These charges represent depreciation of the filtration rig and the amortisation of patents. The amortisation and write off of patent costs has increased by some £30,000 this year as we continue to streamline our portfolio and continue only with those that are essential. As a result certain patents, with associated historical costs have been allowed to lapse. As previously stated under UK GAAP the Company is obliged to amortise goodwill, which it has done over 20 years and this charge of £9,400 is disclosed separately within the profit and loss account. As a result of these factors the loss for the period after tax amounted to £224,000 (2011 – £144,000)
On the 17th May 2012 the Company drew down the last £40,000 of the £240,000 loan facility available from Alexander David Investments PLC. With interest this is a debt of £274,000 as at 31 December 2012 and interest continues to accrue. Technically this loan can be called upon after 14th February 2014, although at the election of either Alexander David Investments Plc (“ADI”) or the Company it can be converted into Regen Therapeutics Limited Shares.
Clearly the sales for the year are disappointing when seen in conjunction with the previous 2 years, albeit 2010 sales were spiked by an upfront fee from Eczascibasi for the rights to sell Colostrinin and an associated bulk order. Unfortunately they have recently informed us that they will stop selling the product (Dyna) after current stocks are exhausted. The regulatory requirements for nutraceuticals in some countries have proved to be less clear and more demanding than originally envisaged, which together with the extent and costs of the work needed to achieve a worthwhile promotional claim has meant that discussions have not progressed with certain potential partners. This aspect coupled with some old local importation laws has meant that sales and potential deals in South Korea, Brazil, Australia and Japan have not progressed.
On the positive side our USA licensee Metagenics has confirmed that they will be introducing a Colostrinin combination product via the ‘professional’ channel in January 2014. Preliminary discussions have taken place with several potential ‘retail’ distribution companies and discussions are ongoing with our contract manufacturing partner Sterling Technology Inc., with regard to the possibility of creating a ‘joint-venture’ partnership to exploit the USA retail market and specific markets in Asia where they already have business contacts and distributors for their own products.
Our Indian licensee USV have signified that they are to stop marketing Colostrinin (Cognate) but are looking to place another order to meet ongoing commitments. Discussions are now being sought with several major Indian companies that have previously shown an interest in distributing the product with a view to replacing USV as our licensee.
Tagerr our distributor in Poland are in the process of seeking regulatory approval to switch from distributing product made by Metagenics to RGTL bulk tablets.
A grant to conduct a clinical trial in AD in the UK has been applied for in collaboration with leading UK AD experts. This application has passed the first review and further feedback is expected in October. No further work or expenditure on the use of zolpidem in brain trauma has been or will be undertaken by RGTL unless the requisite finance is available. As such, remaining patents are being allowed to lapse as and when further expenditure is required. The Company and Dr Clauss continue to receive many enquiries about the product from friends and relations of people with various forms of brain trauma – many of which lead to reported benefit. The latest information on zolpidem can be obtained at: https://twitter.com/Zolpidemupdates courtesy of Dr Ralf Clauss. Again in relation to Colostrinin – Peptides no further work or research is being undertaken unless further
finance is made available. It should be noted however that the work undertaken to-date helps support the scientific case for Colostrinin.
In terms of current cost saving initiatives the Company continues to run from a virtual office. All Directors and consultants have not been paid in 2013 and will continue to defer their remuneration/fees until there is funding/finance available. The Company has ceased to use the JP Jenkins trading platform and has brought the share register in house. Shares can still be traded on a ‘matched bargain’ basis in the short term by contacting the Company, whilst in the longer term we would hope to re-list shares in the Company on an open trading platform. We have also changed our website host in order that we can manage the site internally without incurring any continuing external costs.
The Directors continue to explore various ways of financing and developing the company with its advisers and contacts in order to secure a viable future for the Company in the best interest of shareholders.
For the full document please see:
For further Information contact:
Tim Shilton, Chief Executive Officer
Norman Lott, Finance Director
44 (0) 20 7153 4920