Investment and Company Research
Opportunity Research
MICROCAP HOT TOPICS
 

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.

You Might Also Like

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.

Disclaimer
This Opportunity Research Hot Topics article was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports. It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. While stocks in the Opportunity format may have a higher risk profile, they typically offer greater upside as well. Since May 2013, Goldman Small Cap Research has been compensated $500 per article by a third party and $4,000 for a research report service.  

This article is the opinion of Goldman Small Cap Research and was written based upon publicly available information.  The Company has not endorsed or compensated Goldman Small Cap Research for this article. All information contained in this report was provided by the Company or derived from GSCR due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.

The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research report, update, article, or note is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.

This publication does not take into account the investment objectives, financial situation, or particular needs of any particular person. This report does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority.

ALL INFORMATION IN THIS REPORT IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.