PIL
27/05/2015 16:15
ADDRESS
NOT PRICE SENSITIVE
REL: 1615 HRS Promisia Integrative Limited
ADDRESS: PIL: AGM Address from the Chairman, CEO and Principal Scientist
Annual General Meeting Addresses
CHAIRMAN'S ADDRESS - Malcolm Johnson
This is my third Annual General Meeting as your Chairman a responsibility I
take very seriously.
Much progress has been made since our last shareholder meeting.
With the backing and input of the Board, management has chartered an exciting
new course to become a global leader in developing and marketing unique and
safe therapeutic natural products. These products will employ validated
scientific methodology gathered using robust, evidence-based data. You will
certainly hear more about that aspect shortly.
The comprehensive 2014 annual report bears witness to this new course and the
continuing commitment the board has to raising governance standards such that
we meet best practice as befitting an NZX listed entity.
The Company's Chief Executive Officer Charlie Daily and Dr. Sheena Hunt the
Company's Principal Scientist have worked tirelessly to get the Company to
this point. The Board is indeed indebted to them for their efforts and
contributions.
During the year the Company raised in excess of $1,800,000 through a
placement and a Share Purchase Plan.
We have been successful in receiving two project grants from Callaghan
Innovation, the Government entity designed to accelerate and support industry
innovation. The grants assisted the Company to carry out in-vitro laboratory
studies of its proprietary extract and more recently a randomized,
double-blind, placebo-controlled clinical trial which was the substance of an
important NZX release yesterday.
I thank my Co-Directors for their considerable personal commitment to the
company during the year and look forward with the help of our management team
to executing on the Company's medium term business plan.
CHIEF EXECUTIVE'S ADDRESS - Charlie Daily
Accomplishments over the past 12 months
In the past 12 months Promisia has made significant steps towards becoming a
highly reputable company that develops first to market natural therapeutic
products with scientifically proven efficacy and safety. Our flagship
product, Arthrem(TM), now has both in vitro and clinical data to prove its
efficacy. Published results from the in vitro study have shown that
Arthrem(TM) is a potent anti-inflammatory and the preliminary clinical trial
results indicate that Arthrem(TM) improves symptoms associated with
osteoarthritis.
Other accomplishments for the company include:
o establishing a platform to sell Arthrem(TM) in the US,
o Grant funding from Callaghan Innovation for research and development
o capital funding for future sales growth and marketing
Direction
Over the next 12-24 months, Promisia will continue to grow sales here in NZ
and establish the Athrem(TM) brand in the US. The US model is based on a
recurring sales model. We look forward to reporting to the market as we
establish a base of subscriptions for Arthrem(TM) in the US through our
e-commerce platform.
Branding and Advertising
A 500 person survey about joint supplement products was carried out in the US
on our target customers. The high number of participants was required so
that results could show statistical significance. The packaging, branding and
tone used for content of the US e-commerce website were all developed from
the detailed market research. Investors can see the finished product at our
US website, http://arthrem.com/ .
We have also decided to change our NZ Arthrem(TM) branding to mirror what has
been created for the US. This change is taking place over the 1st week of
June. TV advertising shown in New Zealand over the next 4 months will also
use the new branding.
Sales and Goals for next 12 months
Sales for Arthrem(TM) in New Zealand are expected to grow on the back of TV
advertising, and positive results from the clinical trial. Our New Zealand
distributer, Pharmabroker understands our product and the robust research
that proves its efficacy.
The market here in New Zealand is a great test market. But it has never been
our intention to focus on New Zealand as the main source of income for
Promisia. The vast growth potential from selling our product overseas is our
company's greatest motivator.
Sales in the US will occur this year, with greater traction being gained in
2016 and 2017. Our e-commerce platform allows us to communicate with our
target customers in large volumes. More importantly it can measure what
forms of digital marketing are the most effective.
Once our clinical trial results are published, we will register Arthrem(TM)
as a complementary medicine in Australia, a category that does not exist in
the US or New Zealand. We will be able to make more treatment claims in this
complementary medicine category for the Australian Market. We would not
expect to see any sales momentum in the Australian market until 2016.
We also expect to launch our Canine Arthrem(TM) product in the US in 2016.
More formulation work is required along with clinical trial work. Canine
clinical trials must adhere to the same ethical and regulatory guidelines as
human clinical trials.
Our growing program in Tanzania improves each year. Promisia's company
Director, Tom Brankin, has played a major part in establishing an innovative
growing program in Tanzania. In a recent visit to the farm in Tanzania, Mr
Brankin confirmed that the growing program there is highly productive and
sustainable. The goal is to constantly develop a unique agricultural regime
for growing Artemisia annua.
Concluding Remarks
Once published, the positive results from the clinical trial will give
Promisia the ability to market Arthrem direct to medical health professionals
and consumers who suffer the symptoms associated with Arthritis. Promisia
looks forward to reporting sales progress of Arthrem in New Zealand and other
global markets and progress in the development and commercialisation of other
therapeutic products using Promisia's proprietary plant extract.
PRINCIPAL SCIENTIST'S ADDRESS - Dr Sheena Hunt
At Promisia we believe that it is crucial to obtain scientifically robust,
evidence-based data in order to gain the confidence of consumers, the trust
and endorsement of healthcare professionals and to differentiate our product
from the numerous untried and untested dietary supplements on the market.
We recently conducted a randomised, double-blind, placebo-controlled, 12 week
trial at the Rheumatology Research Unit, University of Otago, which was
partially funded by Callaghan Innovation. The trial investigated the safety
and efficacy of supplementation with Arthrem(TM) in participants aged 35-75
with hip and knee osteoarthritis. We were very happy to announce to the NZX
yesterday that we have positive and statistically significant preliminary
results from the clinical trial. There were statistically significant
improvements in a number of parameters, including reductions in pain, and
improvements in stiffness and physical function for participants taking
Arthrem(TM) at a dose of 1 capsule twice daily. There were no statistically
significant improvements in the placebo group for any parameter. Arthrem(TM)
was also safe and well tolerated.
Last year we were very pleased to be awarded a grant from Callaghan
Innovation to fund a salary for 6 months for a recent PhD or a master's
graduate. We had over 50 highly qualified applicants for the position and in
March, the successful applicant, Liam Harker, joined the company. Liam has an
MSc in Advanced Technology Enterprise from Victoria University and his
academic work has focused extensively on the development and
commercialisation of new bioscience technologies. His primary responsibility
at Promisia is new product development. His strong scientific background
combined with commercialisation training is the perfect fit for Promisia.
We have a number of new products at various stages of development, some in
the joint health market for humans and dogs, and others in entirely new
therapeutic areas. The aim of our comprehensive science R&D programme is to
be able to provide and disseminate relevant clinical data from robust
research. Proven clinical efficacy and safety will be our major point of
difference for all our products.
I am extremely pleased at how the scientific programme has progressed over
the past 12 months and am excited about our future research plans.
END
End CA:00264891 For:PIL Type:ADDRESS Time:2015-05-27 16:15:32