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TWST: We'd like to begin with a brief historical sketch of PacificHealth
and a picture of the things you are doing at the present time.
Dr. Portman: PacificHealth Laboratories is a 10-year-old nutrition
technology company. We discover, develop and commercialize nutritional
products that are patentable and are substantiated by well-controlled
clinical trials conducted at leading university research centers.
PacificHealth Laboratories' (PHLI) principal areas of focus include
weight loss, management of type 2 diabetes, and sports performance. TWST: Would you tell us about the products that you are working on in
each area?
Dr. Portman: We use two core technology platforms in developing patented
protein-based nutritional products that activate biochemical pathways to
enhance muscle performance and growth, and stimulate specific peptides
involved in appetite regulation. The products that are in the news right
now are our sports drink products. In February we entered into a major
transaction with Cadbury Schweppes. Cadbury Schweppes is one of the
largest beverage manufacturers in the United States. They make products
such as Snapple, Dr Pepper, and 7 UP. Cadbury purchased our sports drink
assets, including our Accelerade brand. This represents a very
significant transaction for us because it not only includes an upfront
fee of $4 million, but also royalties based on their sales of a ready to
drink version of Accelerade. We will continue selling the powder and gel
versions of Accelerade to the specialty segment of the sports drink
market such as bike stores and running stores. This deal has huge
implications for us because it places us on a very strong financial
footing ' we've eliminated all our debt. Going forward, we not only
will be profitable, but we will be able to expand our research efforts
in some areas that are enormously exciting.
Tickers included in this excerpt: PHLI
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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