Shareholder Update Pharmanet Group Limited (ASX: PNO) (Pharmanet) is pleased to provide Shareholders with an update of its current activities and programs relating to ThermaLIFE Cream.
Product Distribution Pharmanet announced on 1 February 2011 that its wholly-owned subsidiary, Thermalife International Pharmaceuticals Pty Ltd (the Company) appointed CROSSMARK as exclusive distributor for the Company's product. Since February, CROSSMARK has been actively engaged in product presentations and negotiations with pharmacy wholesalers to add ThermaLIFE to the range of products offered to member pharmacies.
As a result of the presentations on 18 May 2011, the Company entered into a "Charge Thru" agreement with Symbion Pharmacy Services Pty Ltd (Symbion), a major pharmaceutical wholesaler in Australia, for the processing of invoices for ThermaLIFE on behalf of their Symbion pharmacy customers.
Presentations and negotiations are ongoing with other pharmacy wholesalers and buying groups. The Company expects similar arrangements should be concluded which will enable other wholesalers and their pharmacy customers to carry the ThermaLIFE product.
In accordance with the CROSSMARK distribution agreement, the CROSSMARK pharmacy sales force completed the ThermaLIFE product training, and CROSSMARK has been pre-selling the product to their pharmacy customers. Following the recent Symbion agreement, CROSSMARK utilised its pharmacy marketing expertise to generate rapid awareness to pharmacies throughout Australia, and orders for ThermaLIFE are now being filled with a view to increasing the number of pharmacies carrying the product.
Product Marketing The Company has established its own in-house marketing and product development team. The team and its external advertising and public relations consultants are on track in establishing a strategy for the brand. Current activities are focused on brand awareness and stocking at the pharmacy level in preparation for the pending consumer marketing campaign. Additional details will be made available as the strategy is implemented.
"We are pleased with the progress we are making to launch ThermaLIFE back into the Australian market," said John Found, Director of Pharmanet. He also said, "Through our partnership with CROSSMARK, we are laying the foundation with wholesalers, buying groups and pharmacies. We are confident our strategy is on target to establish ThermaLIFE as an enduring brand."
Production Update Production has increased in order to build stock levels to satisfy current orders. The production process is under constant review to maintain the highest quality and keep in line with QA and QC standards. The contracted manufacturing facility has the capacity for increased production to accommodate increase in demand.
Research Facility Pharmasolv Laboratories Pty Ltd (Pharmasolv), a wholly-owned subsidiary of Pharmanet, has established a new research facility to further develop products held by the Pharmanet group of companies. Currently Pharmasolv is undertaking stability studies for ThermaLIFE as well as development of currently registered and future products utilising the ThermaLIFE active ingredients. The research facility has the ability to perform both R&D and stability testing for products held by Pharmanet as well as external companies.
Intellectual Property The Intellectual Property is protected by a composition of matter patent granted in four jurisdictions including the USA. Further patents relating to modes of action are awaiting examination or under examination in up to eight different jurisdictions.
CAI Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
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