September 10, 2013
Plandaí Has All the Right Pieces in Place for Success
Earlier this week, Plandaí Biotechnology, Inc. (OTCQB – PLPL - $0.50 – Spec Buy) recently released landmark news that after further review, paves the way for the formulation of ingredients with tremendous bioavailability to be used in a whole host of products, including anti-aging and weight loss.
Last week, the Company announced that it signed an exclusive agreement with North-West University in South Africa which holds the patents and associated intellectual property covering the entrapment of compounds in long-chain fatty acids-based nano- and micro-particles, known as Pheroid. Under the terms of the world license, Plandai has the exclusive right to use the Pheroid technology with all Phytofare™ polyene-based extracts, which includes proprietary extracts of most botanical matter, for human and animal use.
The primary feature of the Pheroid technology is the encapsulation application, which will dramatically enhance the Company’s industry-leading bioavailability. The Pheroid technology, which can be delivered through different media, improves the absorption of the encapsulated contents while protecting the contents. It is actively used worldwide for industrial and agricultural purposes and has been extensively tested in humans and animals where it has shown an ability to significantly increase the level of absorption of the entrapped particles into the bloodstream.
For Plandai's purposes, the technology will enable the Company to produce its Phytofare™ topical products with significantly enhanced tissue absorption and oral products that can help Phytofare™ survive intact on its passage through the digestive tract and into the bloodstream. Once in the bloodstream, human cells perceive the Pheroid material as a biological building block and as a source of energy, allowing it to pass through the cell membrane and, by metabolism of the long chain fatty acids, release the valuable phytonutrients (encapsulated contents) directly to the tissues.
The bottom line is that through the incorporation of the licensed technology, Plandai may be one of the first firms in the space to have the capability to consistently deliver products such as botanical extracts, including catechins, carotenoids, and citrus bioflavonoids and limonoids, to the target site in the most efficient and bioavailable form.
Under the terms of the agreement, Plandai can develop, test, and then manufacture Phytofare Pheroid products from different botanical extracts for human and animal use. The first Phytofare™ product to be entrapped in Pheroid and marketed as an ingredient will be Phytofare Catechin Complex, which is a highly bioavailable extract produced from green tea catechins. The license calls for a 2% annual royalty on net sales of Plandai products that incorporate the Pheroid technology and is exempt for Plandai humanitarian products.
Given the low-hanging fruit of the topical product’s efficacy and the size of the weight loss market, we believe that the Company will be able to market the combined product with great success beginning in 1H14, following the completion of a short trial. Products in other forms and targeting other markets will shortly follow, thus making 2014 the year that the Company migrates from the development stage to the marketing stage.
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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