February 13, 2019
Interview With CEO Gareth Sheridan
Question: Now you're focused on a few different areas of healthcare, all based on innovative transdermal technologies. Lets start with an overview of your business.
Answer: So Nutriband is a pharmaceutical and health company with a specific focus, like you said, on transdermal technologies. So our transdermal essential breaks down to: it just means that it's delivered through the skin. So we developed products for prescription treatments, consumer products, and diagnostic in this area and with specific focuses on type 2 diabetes, opiate misuse, and blood pressure. Nutriband is part of segment of the booming pharmaceutical industry that is experiencing significant growth at the moment with 11.6%, continued annual growth rate per year, and projected sales are expected to reach $125.8B by 2021. So we feel we're in a prime position to take advantage of this, as that is the year a lot of our drugs will be coming to market.
Question: Well, what's the essential value proposition Gareth? Why should investors take an interest in Nutriband today?
Answer:The biggest value proposition that we would propose is that we have a significant pipeline under our development. With FDA approval, some of our drugs could be game changers. For example we are working on a type 2 diabetes exenatide patch which, if through phase 3 developments, get FDA approval, could mean no more needles for type 2 diabetes patience for good. And we have a significant management behind us as well, with a vast experience in the transdermal space. And we've also signed a, on our consumer products, a twenty-year, ninety-million dollar agreement with a Korean company called Best Choice Inc. A segment of our IP portfolio is also independently valued at a hundred-twenty point seven million dollars. And this was only the start of our pipeline.
Question: You, but you also have some products in the market now. Do you not? The, some of the transdermal patches.
Answer: Correct. So we're selling a range of consumer products, predominantly in Asia, as the moment. The focus of these products is for everyday use. So we have an energy patch, a vitamin patch, a weight management patch. And it's to kind of compete with the supplement market that we felt went a bit stagnant. The main focus here for us at the moment is the Asia region, as they're quite open to innovative and new technological advances when it comes to this area. And that's quite evident in the contract that we received from the Korean company for the twenty-year, ninety-million dollar contract.
Question: Well, let's talk about your basic business model, your margins. How do you actually make money?
Answer:Yeah, so we have a couple of different approaches here. First of all, our in-house drug development. As we take these through various stages of the clinical development pipeline, if right through to market, the obvious one is we take it to market ourselves, and market it as an FDA approved drug.
The other options we have here is, a lot of the time we are focused on licensing opportunities as well. So we have in-licensing and out-licensing opportunities under play with the pipeline we have in development. Our third method is for the international sales for the consumer products, predominantly again, in Asia. As we work to, to build on the ninety-million dollar contract we recently signed. And then we also conduct third-party clinical development at our 4P Therapeutics division in Atlanta.
Question: Now you've also assembled a talented executive team. Who are some of the key players?
Answer: Yeah that was a big, big one that we've been working on over the last year was to really beef up the executive team. So, a couple of the big additions we've made is, firstly, Sean Gallagher, out of Ireland. We've added him as company president. Sean is a well-renowned businessman in Ireland, he came second in the presidential election in 2011. And he's also on Ireland's version of Shark Tank, called Dragon's Den.
Secondly, Jeff Patrick, out of Ohio State. We've added him as our Chief Scientific Officer. He has a wealth of experience in taking drugs from idea stage, right through to the development process. And he's been a pivotal change in the management structure. And then finally, Alan Smith, head of 4P Therapeutics. Following the acquisition of 4P Therapeutics, we had Alan head the division and also the clinical development pipeline which he has over twenty years experience working in.
Question: And Gareth, for your core technology, the transdermal solutions, what's the market opportunity? How big is that?
Answer: We're looking at transdermal solutions as being in its infancy at the moment. It's starting to develop rapidly through technological advances, and that's evident in the continual annual growth rate of eleven point six percent year over year. So we look at it and realize that we are in a booming segment of a booming pharmaceutical industry as a whole. And we're looking to get in early and develop our technologies alongside the technological advances elsewhere as well.
Question: To recap Gareth, what's the main takeaway for investors? Why should they consider owning your stock today?
Answer: A couple of points, Dave. Firstly, we have received a pretty significant contract from Korea, which validates the consumer products that we've been working on for over a year now. The ninety-million dollar contract over twenty years is, works out at two point one million in year one, increasing ten percent year over year for twenty years at a minimum.
Secondly, our drug development pipeline. One or two products taken through full development could be significant game changers in multi-billion dollar markets. Other aspects are our management team that we have in place. I mean, investors can feel safe that we have the right people, in the right place, managing the right areas with a wealth of experience.
And then, finally, our expanding IP portfolio. At the moment, through our various acquisitions, we've added the hundred and twenty million valuation on our first acquisition. The 4P acquisition we have yet to be valued independently, but we would imagine it significantly higher.
February 13, 2019
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