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August 7, 2013

Plandaí’s Phytofare™ Catechin Complex to Fight Child Obesity

It is no secret that the U.S. is in a war with childhood obesity. Just ask First Lady Michelle Obama.  After all, the statistics are alarming. According to the Centers for Disease Control and Prevention (CDC), childhood obesity has more than doubled in children and tripled in adolescents in the past 30 years.  The CDC website also reports:

“The percentage of children aged 6–11 years in the United States who were obese increased from 7% in 1980 to nearly 18% in 2010. Similarly, the percentage of adolescents aged 12–19 years who were obese increased from 5% to 18% over the same period.  The most recent statistics, gathered in 2010, noted that more than one third of children and adolescents were overweight or obese.“

With a 90 subject, three month weight loss study slated to commence later this year, Plandaí Biotechnology, Inc. (OTCQB – PLPL - $0.53 – Spec Buy) is well-positioned to assist in reducing this disturbing trend.  Previous green tea extract weight loss studies, exclusively using children as subjects have not had a great deal of success due to limited bioavailability (nutrient absorption rate into the bloodstream.)   However, in its pending trials, the Company’s Phytofare™ Catechin Complex should be able to demonstrate significant health benefits, including weight loss, owing to its industry-leading absorption levels.  Success in this trial would likely turn the product into the go-to prevention ingredient and offering in weight loss for adults and children.

Many parents would gladly migrate their children’s consumption habits away from sugary soft drinks to healthier alternatives that can aid in weight loss and general wellness. Of course, the benefits to the immune system and overall wellness derived from green tea extracts are well documented. These characteristics have sharply driven the consumption of green tea and the catechins associated with its disease prevention and health benefit properties.   Still, the Holy Grail for parents would be a delivery system that offers are seeking greater bioavailability along with caffeine-free alternatives, which the Company would likely be able to accommodate, pending the outcome of the future trials. 

As the provider of the product of choice in obesity prevention for adults and children, Plandaí’s offerings appear poised to be rewarded with an extremely high profile resulting in significant sales in the U.S. and abroad.

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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