Premier Biomedical, Inc. CEO Letter – April, 2017
EL PASO, TX–(Marketwired – Apr 11, 2017) – Premier Biomedical, Inc. (OTCQB: BIEI)
Greetings From The CEO and Staff at Premier Biomedical!
This past quarter has been a very busy and eventful one for Premier Biomedical.
Finance and Stock Performance
- In the first quarter, we were able to clear our books of convertible debt. The market responded favorably to that news, and the stock price has seen a modest rise.
- Although we launched revenue-generating products in the first quarter, the cash generated by them is not yet sufficient to finance our volume ramp-up and new product introductions planned (see below). As such, we secured new, more conventional equity financing (non-toxic), at a fixed price, which will provide us with necessary capital to execute our plans. Provisions of the financing provide incentives to the lenders for the stock price to appreciate, not depreciate as with toxic financing. One of those incentives are warrants at higher prices that would result in additional capital to the company, again at a fixed price, if exercised.
- This past quarter, we analyzed, and ultimately turned down three offers to buy out Premier Biomedical. The Board determined that none of the offers was in the best interests of or provided fair treatment of our current stockholders
- We believe that a streamlined company focusing on industry-leading pain products is the way of the future and should result in stock appreciation.
- I want to reiterate the obvious for those few who believe PBI management is enriching themselves through the sale of stock: No active board member, or member of management has sold even one share of Premier Biomedical stock. Because we are a publicly traded company, any such sale of stock by an insider necessitates immediate public disclosure through the SEC. Moreover, no active member of PBI management has received one penny in compensation for services rendered. There are no financial bonuses or company cars for any member of management. All members of management, including board members, have contributed considerable sums of money, time and effort toward the success of this company. Their only compensation is by receipt of stock warrants priced significantly higher than the current market, thus giving them incentive to insure the long-term success of the company.
Immunotherapy and Biologics.
- This past quarter we temporarily shelved our anti-cancer project, and approached several Big Pharma companies in an effort to seek a development partner to help bring our technology to market. This step was absolutely necessary as the next stages of development require testing on humanized animals and pre-clinical human volunteers. The cost for these tests has been estimated at $5-7 million and would require approximately 2 – 2 1/2 years to complete.
- The cost and timing of clinical trials would require many additional millions of dollars with no guarantee of interest from Big Pharma in the form of licensing of this technology in the end. Simply stated, this is beyond our limited finances to support and required a pivot in our product strategy towards an immediate revenue-generating product line-up. We will continue to seek a viable partnership to bring this very promising anti-cancer drug to completion.
- It is true that the initial patent application for our latest antibody was rejected by the U.S. Patent and Trademark Office, but this was due to comingling of more than one patentable concept into a single application. The patent attorneys and the research staff are reviewing their options and plan on re-filing on the most promising aspects of the intellectual property.
- Our core technology has always been centered around immunotherapy. How we differ from the principal competitors in this field is that we operate on body fluids extracorporeally (outside of the body) through the use of antibodies against disease antigens.
- In January, we created and launched our web site, www.painreliefmeds.com, to market and sell our initial pain relief products. We experienced numerous setbacks and delays in launching the sight, but were able to finally launch the site January 31st, and the response from consumers has been beyond our expectations. We continue to experience minor problems as we attempted to add additional features and improvements to the site, but are addressing these as quickly as we can.
- In addition to selling products through our website, we have developed several direct distributors in the Western Pennsylvania area, many of whom have outlets in Ohio, and other surrounding states.
- Many of our stockholders and followers have asked about the status of our distributor agreement with the nation’s largest on-line pharmacy. We had indicated earlier that we expected the agreement to be signed several weeks ago, but that has not happened due to a number of issues ranging from attorney reviews to a complete change in the management structure at that company. Although the agreement has been delayed, both parties are confident that the initially proposed agreement can be signed shortly.
- This past month, we developed a presentation on our pain products for use at a convention of independent pharmacy owners in Phoenix in early April. We will be following up with interested independent pharmacy owners who attended that conference in expectation of securing additional direct distributors.
- We will continue to pursue similar distribution agreements with large pharmacy chains, such as Rite-Aid, Walgreens, Medicine Shoppe, etc.
- In addition to expanding distribution in North America, we have been engaged in exploring potential partners in the Philippines, Brazil and South Korea. The Philippines looks especially promising since a TV program aired recently which described the launch of a government-sponsored program to attack that country’s opioid use and addiction epidemic. Our non-narcotic pain relief products may be just the answer.
- In the coming quarters, we plan to study the implications of potential expansion into Europe as well as the rest of Asia.
- In parallel to our efforts to expand our distribution network, we are working to expand our product line. The next product we expect to launch is a new gel pen with the same pain-relieving compounds as our roll-on, in a convenient gel pen dispenser. Prototypes are being prepared as we write this document, and we plan to launch this product by the end of the 3rd Quarter of this year.
- The next product we expect to add is an oral CBD capsule, which we plan to market under the name Pain-Ex™. There is a lot of development work yet to be done, not only with respect to the product, but also the packaging, marketing, and any regulatory obstacles that may arise.
- Subsequent generations of the capsule (Pain-Ex2™, Pain-Ex3™, etc.) will include additional pain relievers, both natural and synthetic, to address a wider variety and severity of pain management. Incorporation of our patented synthetic pain management components into capsules will most likely require FDA approval and be marketed under the name Pain-Ex3™.
- We are particularly excited about entering into this pain management industry, as the current world market for this entire segment of the healthcare industry is $112 Billion annually!
- We are one of the pioneers in this field of non-addictive, natural pain-relievers as a substitute for conventional, highly-addictive, opioid-laced pain medications. Due to the fact that over 28,000 people in the U.S. alone from opioid addiction, we believe that we are in an excellent position to attract attention from large pharmaceutical firms.
Investor/Public Relations Programs.
- In an effort to broaden our product exposure and boost our pain product sales, we have engaged the services of several Investor Relations/Public Relations/Marketing firms. These include social media marketing campaigns, e-marketing/advertising, print ads in select publications, and agreements with relevant internet bloggers.
- I plan to continue promoting Premier Biomedical, and providing updates on our progress through Uptick Newswire press releases, and monthly radio broadcasts, which have been very effective in the past. This is in addition to the occasional Stu Taylor radio show interviews.
- This past month, the Christian Broadcast Network (CBN) 700 Club program aired a segment highlighting the epidemic of opioid-related deaths in West Virginia and throughout the country. In response to that airing, we initiated contact with CBN and forwarded our Pain Management presentation complete with testimonials from our customers indicating the effectiveness of our products in eliminating pain and allowing pain sufferers to reduce or eliminate their use of opioid pain killers. We have volunteered to appear on this multi-national television program to explain the benefits of our all-natural pain killers in combating this opioid epidemic.
- This past month, I volunteered to participate on an opioid task force sponsored by the state of Pennsylvania.
- This past quarter we cleared our books of convertible debt, launched a revenue-generating product line, and secured more conventional financing with incentives for the lender to appreciate, rather than depreciate our stock price.
- We established a number of direct distributors, including pharmacies and health clinics.
- We are attempting to expand our distributor networks both within the United States as well as off-shore.
- We are in the process of launching several additional pain relieving products.
We are confident that we are in a high demand field and that we are on the cutting edge of pain product technology. We thank you for your continued support.
Safe Harbor Notice
Certain statements contained herein are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). Premier Biomedical, Inc. cautions that statements, and assumptions made in this news release constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates made by management. Actual results could differ materially from current projections or implied results. Premier Biomedical, Inc. undertakes no obligation to revise these statements following the date of this news release.