2013 Apr 15 Annual Report 2012 - Phosphagenics

The Phosphagenics
Evolution
THE STORY SO FAR… YEAR BY YEAR
Phosphagenics genesis finds its origin in a share
placement done in June 1999 by Greenchip
Development Ltd to raise money to buy a number
of different technologies. The owners of those
technologies were to a large extent associated
with the inventor Simon West. They had had some
success previously commercialising a technology
to extract Beta Caratene from Algae which was
purchased by US giant Henkel and became the
largest natural Beta Caratene producer in the
world. Harry Rosen, who was at the time the
director of Betatene, became the vice president,
Corporate Development at Henkel. This group of
investors and entrepreneurs had shown the ability
to take a theoretical idea to a commercial reality.
Greenchip Development which was a pooled
development fund ( which provided certain tax
advantages), changed its name to Vital Capital
whose major assets were partial holdings in a
suite of technologies. In 1999 they announced
that they had a water soluble form of Vitamin
E which would have some significance in the
health drink and supplement industries. Part of
the technology was a process to extract Vitamin
E from Palm oil and a pilot plant was built in
Malaysia to conduct trials.
In 2000 Vital Capital merged with Greenchip
Emerging Growth, whose main asset was cash.
Ironically at this stage, and for the next two years
the Vitamin E project saw very little in the way of
development, as other programs seemed closer
to commercialisation.
In 2002 the first announcement of the improved
dermal delivery of oestradoil was made. A number
of other candidates were chosen with Atropine
and Testosterone being successfully delivered,as
well using the Vitamin E Phosphate technology.
In 2003 Vital Capital completed its first
commercial deal, the supply of Vital ET ® to ISP
for use in the personal care market. ISP had
conducted extensive tests that the Vital Capital
form of vitamin E provided superior delivery to
other forms. This commercial relationship remains
in place today ten years later.
Vital Capital announced success in delivery
of Morphine transdermally a few months later.
Research was also dedicated to showing that
Vitamin E Phosphate had a significant number
of heart health benefits. On the back of this
research the Company was able to negotiate
a successful deal with a US company Zila for
the sale of its product as a dietary supplement.
Whilst the total Vitamin E market was impacted
by negative press around that time, this contract
gave Vital Capital and later Phosphagenics
a revenue stream for several years.
In 2004 trials were started on a heart drug
APA01 which showed encouraging results in
animals, and preliminary moves were made for
the development of a Morphine patch. Ester E
(Zila’s product) was on sale in the US and a
material transfer agreement was made with ALZA
corporation a subsidiary of Johnson & Johnson
to investigate the Phosphagenics delivery system.
07
THE PHOSPHAGENCIS EVOLUTION