Ted Karkus discussing Prophase and their (non)plans for...

Ted Karkus discussing Prophase and their (non)plans for introducing TPM enhanced products:

Q: What's the latest on ProPhase's Phusion Labs joint venture with Australian delivery technology firm Phosphagenics Ltd.?

A: "The company actually bought back roughly $1 million worth of stock from that original joint venture. So we in effect decreased our investment in the joint venture by $1 million while maintaining all the same right to the joint venture... I'm not interested in introducing products that then become a write-off a year or two years later. We will only introduce products that make sense. Our initial strategy right now is to introduce products that leverage the Cold-EEZE brand. We are doing both marketing and development research for products that could include TPM (the Targeted Penetration Matrix delivery platform). That's ongoing. And we're looking to introduce products longer term from the joint venture, but I don't foresee introducing anything on a very short term basis."

Q: The JV originally intended to begin launching products in 2011. Is the product development running behind schedule?

A: "Well, our corporate strategy has changed somewhat. Two years ago, we were looking to aggressively introduce products outside the Cold-EEZE brand and possibly even outside the cough/cold category. However, given economic times and given the risk/reward of introducing products outside the category, as opposed to introducing Cold-EEZE branded product, we feel that we need to achieve a critical mass of Cold-EEZE sales that can support the infrastructure of the company before introducing products outside the category that would require a significant investment in marketing and so forth. So it is still certainly in our strategy to introduce products with the joint venture's state-of-the-art delivery technology, but we are not in any hurry to rush out a product and make mistakes that are going to cost the shareholders dearly. I would much rather move forward with the joint venture on a slower, more methodical approach, which will pay off longer term."

So, there it is in a nutshell. No one ought to expect much from ProPhase or Phusion Labs within any sort of meaningful timeframe. I'm quite certain that alternative partners will materialize to take advantage of OTC opportunities white Prophase dithers.

And GC, I don't see anything in there to support the idea that TPM could somehow be incorporated into a COld-EEZE product.