August 27, 2013
Coca-Cola Study Results Suggest Potential Benefit to Plandaí Biotechnology
A research study conducted by Coca-Cola (NYSE – KO) in 2011 indicated that drinking polyphenol rich juice may have benefits associated with a positive change in a major protein that affects arterial health. These findings should be viewed as a positive event and corroborating third-party evidence from the world’s leading beverage producer and thus a boon to Plandaí Biotechnology (OTC QB – PLPL - $0.75 – Spec Buy). Plandaí plans to introduce highly bioavailable extract products under the Company’s Phytofare™ line that specifically contain these polyphenols which can be used in juices and other beverages.
Polyphenol s are derived from natural extracts and have been the subject of extensive research due to high antioxidant activity and demonstrated capability to eliminate free radicals, or polluted cells. They are commonly found in green tea extracts, or green tea gallate catechin extracts, and carotenoid botanical extracts found in tomatoes and other ‘colorful’ vegetables.
The aforementioned study was conducted in a partnership with the University of Glasgow and Mosaiques Diagnostics, GmbH. Results demonstrated that the levels of 27 polypeptides, which are protein or amino acid chains in the arteries and elsewhere, increased by nearly 4 times in experimental candidates that consumed the polyphenol rich juices over time. Seven of the 27 polypeptides are known urinary markers for coronary artery disease. Researchers stated that the seven coronary artery disease markers moved closer to a ‘healthy state’ for those candidates who consumed the polyphenol-rich juices. The bottom line is that the study demonstrated that drinking green tea extract or carotenoid extract appears to improve arterial function at the molecular level.
To that end, Plandaí’s Phytofare™ Catechin Complex and Carotenoid Complex have been formulated with a proprietary process that will enable the release of more of these polyphenol compounds versus the competitors. This product differentiation is created with superior bioavailability, or the measurement of an amount of a compound that is absorbed into the bloodstream. Normal extracts produce 1-10% bioavailability, while the Phytofare™ extract products have demonstrated 70% on average for bioavailability.
Plandaí is on target to begin production of the Phytofare™ Catechin Complex in powder form, topical cream, gel tabs, and a liquid by the end of 1Q14. The liquid form can be used in beverages while the other forms can be incorporated into various supplements and nutriceuticals offering a host of superior health benefits including that discussed in the example above. Additionally, the Company has partnered with several distributors in the US, Europe and Africa to sell market and distribute Plandai's Phytofare™ extracts commence in 1Q14 as well.
Plandaí’s aggressive marketing campaign will reap major benefits as the message that beverages and other products that utilize the Phytofare™ products can provide superior levels of healthy ingredients, such as the polyphenols mentioned above. This differentiation should help the Company expand its market share and generate strong results in 2014.
For more information, refer to our previous PLPL Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com
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Senior Analyst: Robert Goldman
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