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OTC Stock Review

 


 

PuraMed BioScience (OTCBB:PMBS)

Web site: www.brandpartners.com

www.storeinaboxassociates.com

 

OTC Stock Review Report

 

PuraMed BioScience (OTCBB:PMBS) develops and markets the Lipigesic brand of non-prescription medicinal and healthcare products directly to consumers through its direct response television commercial, as well as its eCommerce websites www.lipigesic.com and www.mymigrainegone.com.

PMBS plans to expand its marketing efforts to include all major retail channels. In addition to its leading product LipiGesic M, which provides acute relief from migraine headaches, PMBS plans to launch LipiGesic PM, which provides a remedy for insomnia and other sleep disorders, as well as LipiGesic H for more prevalent tension headaches.

Product development and design packaging of all PuraMed products have been conducted entirely by the Company’s two principal officers, Russell Mitchell and James Higgins, both of whom have extensive experience in new product development and marketing of non-prescription medical products and nutritional supplements and the many varied promotional activities involved in their marketing rollouts. Mr. Mitchell previously founded Mitchell Health Technologies, the master broker for the launch of Quigley Corp’s “Cold-Eeze” treatment for common colds, which within 18 months exceeded $70 million in annual wholesale revenues. In our opinion, the long and successful professional involvement of the PMBS management team in its industry is a valuable asset to draw upon and one of the foremost reasons investors will want to own this stock. 

PMBS is entering the OTC healthcare products marketplace by employing “direct to consumer” marketing via Direct Response television commercials followed by broad retail distribution through mainstream mass merchandisers, drug stores and food chains. Currently PMBS is undergoing substantial activities directed toward its initial commercial launch of Lipigesic brand products. The direct response commercial can be viewed at the following link: 
http://www.puramedbioscience.com/media.html

PMBS plans to continue to develop and grow its intellectual property portfolio which is expected to substantially enhance shareholder value. PMBS also plans to conduct both In Vivo (Human Studies) and In Vitro (Test Tube Studies), which will add to the intellectual property of the Lipigesic M migraine product. In an effort to develop new products, the scientific team at PMBS has gained significant and exciting evidence from its initial research that should result in the development of a new generation of botanically derived anti-inflammatory and pain management products with broad applications.

LipiGesic M

LipiGesic M provides acute relief from migraine headaches, and contains the herbs feverfew and ginger as principal ingredients. PMBS believes that its specific formulation of these herbs for its migraine remedy is unique and proprietary, providing relief from these severe headaches in minutes. In our opinion, PMBS could capture a material segment of the lucrative migraine headache remedy market, which could exceed $6 billion annually on headache pain relievers in the U.S. alone. Statistics show that over half of the sufferers of migraine headaches rely exclusively on non-prescription medications.

At least 50 million Americans suffer from chronic migraine headaches with over 20 million of them having “severe” migraine conditions. Thus migraine headaches constitute a severe and disabling condition for millions of people. The economic burden alone to the U.S. economy is in excess of $20 billion annually.

LipiGesic M is effective, available as a non-prescription remedy, without any known side effects, and affordable compared to more expensive migraine drugs based on prescription chemical formulations. If you suffer from migraine headaches, or know someone who does, we encourage you to call PMBS and ask for a sample of LipiGesic M. 

LipiGesic PM

LipiGesic PM is a new class of non-prescription sleep aid with no known side effects. It contains a proprietary blend of natural ingredients including Valerian, St. John’s Wort, and Chamomile. We believe that the proprietary blend of these ingredients provides an effective remedy for insomnia and other sleep disorders. The non prescription sleep aid market features products based primarily on antihistamines which were designed to treat allergies.

Accordingly, the LipiGesic PM product provides a wide open market opportunity for an effective, natural alternative to prescription medications, which are somewhat addictive and often cause withdrawal symptoms and other side effects. LipiGesic PM has been priced as a premium sleep aid product, which provides PMBS with a projected gross margin of approximately 80%. You read that correctly, we said 80%. In our opinion, this large margin should leave PMBS significant room for ample introductory promotion, product allowances and other incentives conducive to achieving rapid market penetration.

Similar to the migraine remedy market, the market for sleep aid products represents a very large segment of the overall healthcare products marketplace. We believe that over half of all adults in the U.S. suffer from sleep disorders, and that many of them experience persistent insomnia. The National Center on Sleep Disorders has reported that there are as many as 70 million problem sleepers in the U.S. with many of them suffering from chronic sleep disorders. We believe that insomnia is second only to pain as a healthcare complaint. 

Future LipiGesic Products

PMBS has completed development of additional non-prescription products, which it plans to launch commercially over the next couple years after establishing a solid market for its initial two products. These other PuraMed products include: LipiGesic H , which provides relief for common tension headaches which regularly plagues a majority of American adults.

LipiGesic H provides headache relief which features a unique proprietary formulation of St. John’s Wort and common aspirin. LipiGesic Smoker’s Pal provides relief from the symptoms associated with nicotine withdrawal with the added benefit of an appetite suppressant. LipiGesic RLS relieves leg cramps associated with Restless Leg Syndrome affecting a large segment of the population in the U.S. LipiGesic GI provides relief of symptoms associated with nighttime reflux disorders. LipiGesic CS provides fast relief for canker sore outbreaks. In our opinion, any of these products could result in blockbuster sales. 

When introduced commercially, these other products will be packaged and branded much like the initial LipiGesic products. PMBS plans to devote substantial efforts and resources toward gaining a favorable and consistent brand and packaging for all PuraMed products in order to make them instantly recognizable on retail store shelves.

Sublingual Delivery System

LipiGesic M, LipiGesic PM and LipiGesic H are non-prescription, liquid gel medications that will be absorbed under-the tongue, which is known as “sublingual.” Sublingual delivery gets into the blood stream more quickly, unlike the majority of pills and medications absorbed through the stomach directly. Advantages of sublingual administration of drugs and medications include faster acting absorption for quick relief, improved efficacy, less stomach upset, and fewer side effects.

PMBS has secured reliable contract manufacturers to produce and package its products in easy-to-use, premeasured dispensers that are delivered sublingually. In our opinion, the benchmark use of sublingual dispensers will distinguish products from PMBS favorably in comparison to most competing OTC products now in the marketplace.

Regulation of PuraMed Products

Unlike prescription drugs or medications, non-prescription healthcare remedies, such as those made by PMBS, do not require FDA approval prior to entering the market. They are, however, subject to substantial FDA and other federal regulations governing their use, labeling, advertising, manufacturing and ingredients. PMBS believes that its current and proposed development, formulation, marketing and other practices and procedures will comply fully with all governmental regulations applicable to PuraMed Products. 

Sales and Marketing

PMBS plans to launch its initial two products commercially through the following three-phase process:

Phase One Rollout consists of a direct response marketing campaign. which will allow PMBS to test and refine its advertising message. After refining this initial advertising and identifying primary customer bases, PMBS will create and have broadcasted television infomercials as well as standard TV commercials. PMBS will also employ website and toll-free telephone access in conjunction with its print and TV direct response campaigns. PMBS began its Phase One Rollout the week of December 14 and followed up with a January 4 press release regarding revenues from this initial rollout.

Phase Two Rollout will focus on retail drugstores. PMBS expects to develop substantial product sales and a defined customer base from its direct response marketing phase by the first quarter of 2010. It will then begin marketing through approximately 18,000 retail drugstores including Walgreens, Rite Aid, CVS and others. As a result of strong, extensive relationships between PMBS management and these targeted retailers, we believe PMBS has the ability to place its products on the shelf in all its targeted retail outlets.

Phase Three Rollout will consist of placing PuraMed products in approximately 21,000 additional targeted retail outlets including mass merchandisers such as Wal-Mart and Target, food store chains such as Supervalu, Kroger and Safeway, and additional well-known regional drugstores. 

Summary

Now is an exciting time for PMBS and its shareholders. To date it has kept a relatively low profile, choosing to focus on building value for itself by developing its technology and brands rather than market visibility. As the Company rolls out new products and expands the awareness of its existing brands, we believe investors will certainly notice the stock. As a result, the price and trading volume of PMBS should increase as investors learn about this incredible opportunity. 

With a management team that has "done this before" to the tune of a $70 million company, we believe sales of products introduced by PMBS will be very strong. With wide profit margins on the products sold by PMBS, in our opinion, shareholders will benefit from a higher stock price as revenues and profits increase. 

Growth oriented investors should consider adding shares of PMBS to their portfolio at these levels. Once its products show up on the shelves of major retailers and the stock begins to be more widely followed by Wall Street, investors could see five to ten-fold returns. 

 

 

*Please see our disclaimer

 

OTCBB Symbol: PMBS
Shares Outstanding:              12.6 million 
52 Week Trading Range:
52-Week Low: $0.06
52-Week High: $1.99
Corporate Offices: 
1326 Schofield Avenue
Schofield, WI 54476
Phone: (715) 359-6373
Email: info@puramedbioscience.com
Website: www.puramedbioscience.com

Feverfew, the main active ingredient in LipiGesic™ M (for migraine relief), is an herb that has been recognized for centuries as having a beneficial effect on migraine, menstrual and other headaches.

 

PuraMed BioScience ensures that all of its products have clinical evidence to support their efficacy and are manufactured under strict manufacturing protocols.