Eastgate Biotech Provides Corporate Update
WEST CALDWELL, N.J. and TORONTO, March 1, 2018 (Newswire.com) - EastGate Biotech Corp. (OTC PINK: ETBI), an emerging pharmaceutical company that focuses on innovative pharmaceutical developments and produces and distributes innovative and healthy nutraceuticals based on natural therapies has announced today its corporate update.
EastGate Biotech is pleased to provide its shareholders with the following corporate update:
The Company’s strategic moves over the past year to improve its underlying operations were part of a corporate vision to be a “disrupter” in the drug delivery sector targeting unmet medical needs. As a company, we collectively agreed that drug development requires patience and funding and we had a realization that the burn rate needed to be curbed. The time between drug development milestones can test investor’s patience so we were opportunistic in our purchase of OMNI Surgery and Anti-Aging Centre (OMNI). Not only did this investment give us an opportunity for a growing revenue stream but it also served as a stepping stone for a much larger play in the Anti-Aging Market by providing us a platform on which to launch other products under the OMNI umbrella. Over the course of a year, we have developed a replicable model of an ideal Anti-Aging Center.
As a company, we are much better positioned than we were last year and have numerous opportunities in emerging markets that we are focusing on in order to introduce our non-injectable insulin products. The most promising of our products are the liquid insulin mouth rinse and the time release dissolving tablet. The opportunities being evaluated are non-dilutive in nature to our existing shareholders. Our delivery technology is proven but needs to be validated in clinical trials and we are in search of partners to that end and hope to provide details in the coming months. As our products become approved and make their way into the marketplace we will need distribution. We currently have a line of anti-aging products and nutraceuticals and hope to expand our distribution via our asset-based medical service unit (OMNI).
Emerging Market Opportunities
The world is facing an epidemic when it comes to diabetes. We believe we have a low-cost solution to treat and maintain a patient’s health delaying the onset of complications from the disease. Unfortunately, in the Philippines, diabetes is at epidemic levels, and we believe we are going to be the first responders to this hotspot. Our last news update indicated we opened up an office in the Philippines. If we are serious about fighting a disease that afflicts 1 in 4 people in the Philippines we need proverbial boots on the ground to fight this battle. Our presence opens up a huge market for the company even at very conservative penetration levels. The regulatory environment is very cognizant that they need a solution other than a costly injectable that can have a positive impact on a patient’s quality of life yet still be affordable to the overall healthcare system. This regulatory climate sets the stage for a public-private partnership to tackle this impending epidemic. Development costs are substantially lower in the Philippines and the company believes there are economic incentives to build Filipino manufacturing and distribution should the product come to market. The office in the Philippines run by our Managing Director Roger Munoz establishes a base of operations to open up other markets in S. E. Asia. Our focus is on the Philippines but we anticipate that we will see other countries come on board over the next 12 months.
Product Development Update
EastGate has never had the funding to develop a formal product pipeline but recent activity has us very encouraged that we will be able to develop a complete portfolio of products including different delivery mechanisms. We have been fortunate enough to have the talent to develop a drug delivery platform through sublingual tablets, mouth rinse, sprays, etc.. After much discussion with markets advisors in territorial markets the company has made the decision to proceed with its liquid insulin mouth solution first. The insulin mouth solution will be targeting Type 2 patients for mealtime glucose management; although it could also be available for pre-diabetes patients looking for solutions to manage glucose levels.
At the moment, the insulin mouth solution is a Trade Secret. However, as scale-up and future partners dictate we could see our technology transfer plans escalate. If they do the company is well positioned to consider patent applications for some of the processes particularly in light of the fact that the company intends to concentrate its operations in emerging markets. This activity could, in turn, lead to considerable licensing potential as well. For the near term, the company intends to maintain its current patent applications and as necessary or when funds permit expand them for the purpose of monetization.
Omni Surgical Center Acquisition
In 2017, the company purchased OMNI. While we have not yet celebrated our first anniversary since our acquisition we have tripled our clientele and increased product output by approximately 18%. In the next 9-12 months, we will increasingly focus our efforts on increasing surgeries in the Regina location. We also hope to initiate plans with a partner to open up at least one more location with an eye on the emerging markets for this endeavor.
Acquisition Goals Met
- Developed internal distribution avenue of EastGate’s product lines
- Add cash flowing assets contributing to the overall mission of EastGate
- Generate cash flow that will stabilize public company expenses
- Facility to conduct future R&D via clinical trials.
Co-Listing Canadian Stock Exchange
The release of our 2016 filing should remove the stop sign on the OTC Markets and opens the door for Gunpowder Capital Corp. to file for a co-listing on the Canadian Stock Exchange (CSE). We are excited at reaching this milestone because a co-listing increases our investor exposure and opens up the doors for additional financing options. We want to remind all investors to that we are not interested in pursuing any financing that is toxic in nature and feel very comfortable that we have a non-dilutive path forward to finance an additional clinic or future clinical trials.
Management feels 2018 is going to be a transformational year and expects we break out of our R&D mode and move toward developing a more traditional pipeline of solutions for emerging markets. Significant progress is being made toward solidifying our relationships in overseas markets. We understand the need to validate our products and continue the development of innovative products to meet unmet medical needs. Our Anti-Aging Center in Regina, Canada is a wonderful showcase for us to leverage our successful model into new markets. As we close on relationships and bring in non-dilutive financing to advance our drug pipeline we believe this will strongly enhance the company’s financial profile that will add value to shareholders.
Rose C. Perri Anna Gluskin President Chief Executive Officer
United World Against Diabetes
About EastGate Biotech
EastGate Biotech focuses on innovate pharmaceutical developments and produces and distributes innovative and healthy nutraceuticals that are based on natural therapies and absorbed naturally by the body. We utilize advanced nanotechnologies to deliver healthy alternatives to conventional pharmaceuticals that all-too-often create dangerous side-effects and unexpected consequences for those trying to attain and maintain healthy lives.
Our research and development team are dedicated to providing the best nutraceutical products for your natural comfort, health, and well-being. We invite you to explore the naturally healthy benefits of EastGate Biotech.
Cautionary statement on forward-looking information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release constitute "forward-looking information" or "forward-looking statements" within the meaning of certain securities laws, including the provisions for "safe harbour" under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release.
The words "anticipates", "plans", "expects", "indicate", "intend", "scheduled", "estimates", "forecasts", "focus", "guidance", "initiative", "model", "methodology", "outlook", "potential", "projected", "pursue", "strategy", "study", "targets", or "believes", or variations of or similar such words and phrases or statements that certain actions, events or results "may", "could", "would", or "should", "might", or "way forward", "will be taken", "will occur" or "will be achieved" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. The risks, estimates, models and assumptions contained or incorporated by reference in this release, include those identified from time to time in the reports filed by EastGate with the SEC, which should be considered together with any forward-looking statement. EastGate undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Rose Perri 1-647-692-0652
Source: EastGate Biotech Corp.