Ann: Phosphagenics and Quigley Corp form JV for O, page-24

re: Ann: Phosphagenics and Quigley Corp form ... There is quite a good amount of media coverage in the US business and US Pharma press re our new JV with Quigley Corp.

Also it is becoming clear that the 1st two OTC products flagged for development are an Acne treatment (POH has developed and trialled a TPM Retinoic Acid treatment already) and a Smoking Cessation treatment which I presume will be a Nicotene Step Down Patch pitched in Opposition to the likes of GSKs Nicobate. With regards the latter- there are over 1 Billion smokers globally and of these 35 Million (according to GSK) attempt to quit via a Smoking Cessation OTC product each year. Given Mark Twain's quip: "Quitting smoking is easy. I've done it a thousand times." it would seem many are repeat customers and so this is clearly a very lucrative market for Phusion.

As for Acnew treatment: Here is the back story from POHs website in its development of TPM Tretinoin (Retinoic Acid)

"Tretinoin (also known as Retinoic Acid) is the topical treatment of choice for acne. However, it is poorly soluble and is associated with irritation and dryness of the skin. In the US alone the sales for topical acne treatments in 2006 were US$1.3 billion of which topical prescription retinoids, such as tretinoin, contributed US$347 million.

Pre-clinical studies demonstrated both an increase in dermal absorption of tretinoin when formulated with Phosphagenics proprietary drug delivery platform (TPM), and a significant reduction in irritation scores, while limiting the delivery of tretinoin into the system circulation, compared to tretinoin alone.

Following this, Phosphagenics has obtained favorable results in a phase I human safety and irritation clinical trial conducted in the U.S. and plans are underway to commence a human dermal pharmacokinetic trial, to assess the level of bioavailability of Phosphagenics tretinoin formulation, in the near future.

A new formulation with the ability to deliver greater absorption of tretinoin, reduce irritation and dryness and limit systemic circulation should significantly increase the topical prescription retinoids market"

I smell success in the air

KC