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July 18, 2013

Plandaí’s Phytofare Is The Smart Way To Go

Green tea and green tea extracts are some of the most popular products in the nutraceutical market due to their widely publicized beneficial health properties. Specifically, green tea’s gallate catechins are known to have been used extremely effectively and efficiently as an antioxidant, a weight loss aid, cold prevention, oral health, and cardiovascular health.  The most dominant catechin, Epigallocatechin Gallate (EGCG) is also applied to medicinal treatments for HIV/AIDS, cancer, malaria, chronic fatigue syndrome, and others. Given the breadth and depth of applications, the growth rate in the space remains high and Plandaí Biotechnology, Inc. (OTCQB – PLPL - $0.43 – Spec Buy) is primed to take advantage of the offering’s increased demand.  In fact, today, EGCG is used in such products as dietary supplements, herbal tea, energy drinks, functional foods, and cosmetics and associated creams.

ECGC is one of the most well researched extracts in the natural extract sector, with over 500 validated research studies published worldwide. Moreover, the market for green tea remains in a strong growth trajectory with increasing volume growth rates between 13-14% per year annually, and generating roughly $50 billion in sales each year.  While much of the attention of the use of these nutrients is on wellness and disease prevention, Plandaí’s flagship product, Phytofare™ Catechin Complex, might prove its effectiveness in increasing our cognitive abilities as well. 

Studies and research performed in the 1990’s in recent years confirmed the fact that due to EGCG’s ability to easily cross the blood brain barrier and increasing brain activity up to 2 hours after ingestion, EGCG’s cognitive properties have been investigated in animal studies. When administered via IV to rats, EGCG statistical significance was witnessed at high doses one hour prior to a learning event. Plus, lower doses fed orally for eight weeks indicated an improvement in memory in aged rates.

Moreover, a study using a combination of green tea catechins and L-theanine, a constituent of green tea, demonstrated that patients suffering from non-clinical memory decline (average age 58) increasing recognition speed, word reading, and selective attention.

Clearly, whether EGCG is used alone or in conjunction with L-theanine, cognitive abilities can be aided via consumption of these nutrients.  This opens up a whole new market for a company such as Plandaí that has demonstrated an ability to generate substantial bioavailability in botanical extracts, including green tea, which is key in leveraging the huge opportunity with Baby Boomers, the aging, and the younger set, which are prime targets for wellness and cognitive health.

Senior Analyst: Robert Goldman
Rob Goldman has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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