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August 5, 2013

Plandaí’s Upcoming Weight Loss Study Primed to Outperform Competing Trials

plandaiIn an effort to introduce an over-the-counter supplement or ingredient that can truly enhance weight loss, hypertension, and offer a strong side effect profile, a number of companies have engaged in clinical trials to determine the efficacy of green tea extracts with weight loss, with mixed results. With a product that likely has the highest nutrient absorption rate into the bloodstream (bioavailability) in the industry, Plandaí Biotechnology, Inc. (OTCQB – PLPL - $0.495 – Spec Buy) appears to have a leg up on the competition in a product category worth hundreds of millions in annual sales. 

Later this year, Plandaí plans to test the effects of Phytofare™ Catechin Complex in inducing weight loss, while also improving cholesterol and lowering blood pressure. The human clinical trial will involve 90 subjects, including a placebo group, over three months and will include full blood panels in addition to measuring overall weight loss and changes in fat percentages and mood.  Phytofare™ should be able to demonstrate significant health benefits, including weight loss, owing to its higher absorption levels.

In previous studies conducted by competing firms, results demonstrated that when looking at longer term studies and fat loss overall, green tea catechins are associated with weight loss in 90 days at 886mg daily.  Interestingly, a recent meta-analysis noted that, on average, green tea extract was causative for body weight loss (at least 12 weeks in length) with more weight loss occurring in those that did not habitually consume caffeine.  In addition, a 2009 study reported in the American Journal of Clinical Nutrition, noted that men who consumed roughly 660mg worth of catechins lost nearly twice as much weight--5.3 compared to 2.9 pounds—than those consumed 10% of that figure. Plus, the men in this study reported that they experienced greater losses in waist size and body mass index.

In most of these trials, the catechin EGCG was featured and up to 800mg was consumed by subjects.  Amounts greater than 800mg appeared to have a negative response in terms of tolerance, including nausea and other issues, thus limiting the potential efficacy in these studies.

The Plandaí trial is likely to demonstrate significantly greater bioavailability than the typical 2-13% garnered by competing products, which should foster better-than-historical results. Moreover, the Phytofare™ Catechin Complex is comprised of more than just the EGCG catechin, which should pack an even greater punch through its absorption and weight loss effect.   Finally, the tolerability of the Phytofare™ Catechin Complex, due to its very construction, should be much greater than the high levels of EGCG on its own.

With all of these positive attributes in its corner, Plandaí is on the verge of changing how we approach weight loss on its way to generating substantial revenue in the nutriceutical space.

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.

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