sti - future potential

I found this on the proactive investor website. Now don't rush tomorrow pls...

http://www.proactiveinvestors.com.au/companies/news/2492/stirling-products-targeting-early-cashflows-hda-technology-as-drivers-2492.html

Wednesday, September 09, 2009

Stirling Products targeting early cashflows, HDA technology as drivers
by Andrew McCrea

Australian healthcare company Stirling Products (ASX: STI) has completed a significant re-positioning of its businesses, focussing on sustainable sales in the human health and animal health market sectors.

Peter Boonen managing director of Stirling Products said current sales initiatives are now:

- ImmunoXel - natural product for adjuvant treatment of TB and TB/HIV
- ImmunoXel – by boosting the immune system for added influenza infection protection
- ProVale natural immune booster and growth agent for livestock and aquaculture

Boonen said sales revenues from these initiatives are expected to commence in the next quarter. Trials for ProVale have commenced with clients that have the potential to ultimately realise monthly sales >US$100,000 each.

He said the company’s South African JV is positioning R-salbutamol as an approved animal growth promotion product.

ImmunoXel is targeted for use as an immunomodulator in the treatment of different strains of TB and TB/HIV, and also as a natural product that may be beneficial in the prevention of influenza.

Although, untested against swine flu, the company believes that ImmunoXel through its immune system activity could be similarly beneficial against the current swine flu variant of seasonal influenza.

A report by the US President’s Council of Advisors on Science and Technology released late last month outlined the US case for a potential infection rate scenario of 30-50% of the population and up to 1.8 million additional hospital admissions, as a result of the 2009-H1N1 Influenza (Swine Flu) virus.

Stirling is working to have ImmunoXel ready for launch in the USA this coming flu season as a product that may be of benefit to peoples’ immune system which then may assist the body to ward off virus infection naturally.

The company will import sufficient product to provide gross sales of ImmunoXel of up to US$500,000 per month. It is also working on regulatory compliance, package redesign, and distribution, promotion and marketing options.

Last month Stirling hosted a conference in Mexico in conjunction with Canadian Government agencies to promote its ProVale immune boosting growth agent for livestock.

ProVale sales are generally linked to initial orders related to product comparative trials. A number of product trials are now underway or being initiated after the conference.

Boonen believes that a number of these trials have the potential to realise monthly sales in excess of US$100,000 each from the respective client companies subject to their own trial validation of the product.

Last month the Company announced the acquisition of the herbal and drug delivery rights to High Density Aerosol (HDA) technology.

HDA technology would appear to have some distinct advantages over current aerosol inhalation devices.

And may represent a key breakthrough platform for pharmaceutical drug delivery.

The strategy with the HDA technology is to seek to position it as a delivery platform that would have the potential to capture market share of some of the world’s major pharmaceutical drugs as they come off-patent.

Subject to trial validation, one of the major advantages of the technology, is an improved safety profile for delivery of pharmaceutical drugs.

As importantly, many major drugs are moving off-patent in the decade to 2012, and into the generic drugs market sector. A market, worth in excess of US$150 billion worldwide.

Although still early days, if Peter Boonen and the Stirling team can adapt any of these major off-patent products for effective safer application through the HDA delivery platform, with less risk, clearly this would open up major potential revenue opportunities for Stirling, that could be significant.

The company completed a convertible notes capital raising issue, which was substantially oversubscribed.