Premier Biomedical CEO Letter July 2017
Published: Jul 17, 2017
EL PASO, TX--(Marketwired - July 17, 2017) - Greetings From The CEO and Staff at Premier Biomedical (OTCQB: BIEI)
This past quarter has been a very busy and eventful one for Premier Biomedical.
Finance and Stock Performance
- Late in the first quarter, we entered into an equity financing deal that can potentially bring over $7 million of capital into the company over the next three years, contingent upon favorable stock price appreciation. Details of this financing were contained in a previous press release and 8K filing.
- The resulting capital infusion allowed us to ramp up our pain management products pre-production builds and search for suitable production sources.
- We have dissolved the Pain Management Products joint venture and have integrated the Hemp Oil Products Pain Management Business into PBI. Our issued patent on our medication whose primary ingredients are most widely used to treat chemical and alcohol addiction fit well in our pain product division focus. This is a real synergy between our patented drug and our hemp-based formulations and enables us to focus more attention on the entire pain management business.
- These pain products will be installed into a Pain Management Division, while our anti-cancer developments will be in a separate Biologics Division.
- We consider our stock to be artificially low and a good investment for the future.
Immunotherapy and Biologics.
- Continuing discussions with several potential suitors to evaluate how we might jointly proceed to develop our proprietary technology to a point where it will be market ready.
- 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 months ago, but that has not happened due to a number of issues, including two complete changes in top management at that company, to issues related to perceived sales and marketing restrictions. We have continued working with them and have not let frustration with corporate decision making stop us. We still remain hopeful and cautiously optimistic, but cannot guarantee the results. If we are unable to conclude this distributorship deal, we will seek arrangements with other large scale distributors.
- In the last days of April, we experienced a spike in orders for our products, which was both good news and bad. Volume production was not yet ready, and pre-production hand assembly processes were unable to keep up with the demand. As a result, customers experienced out-of-stock conditions and excessive delays in receiving products.
- We did what we could to mitigate the inventory shortages and arranged for a spot buy of another product to provide us with synthetic enhanced products to provide both immediate and long term pain relief for our customers. These products have been met with mixed reviews -- some customers love them and have reordered them; others do not. On that basis, we will continue those products in demand and discontinue those with limited sales potential.
- In our efforts to launch production on our original patch and roll-on, we have become more acutely aware of market trends, market needs and market gaps. As a result, we have delayed our exploration into a range of different hemp oil-based products, like edibles and sprays, in favor of expansion of patch products. We believe the pain patch market is an underserved segment of the pain management market, and holds great potential for growth.
- We will be developing additional sizes and shapes of our hypoallergenic foam patch. These will range from small bandage-sized one-day patches ideal for short term local pain, to large area patches for wide spread, longer term pain. We will also continue to offer both a sage-scented, oil based roll-on and a lavender water based formulation roll-on.
- We are also increasing the levels of active pain reducing ingredient in our patches and roll-ons. These new patches, which have recently become available, contain 50 mg of hemp oil extracts, which is the most in the industry to our knowledge. Our oil based roll-on will increase its hemp oil extract content by more than 35% to 150mg, also the most in the industry to our knowledge.
- To date, we have made all of our topical pain patches and roll-on applicators via hand operations. We simply could not expand our distributorships nor plan for the future until we had resolved our formulations and had developed a reliable volume manufacturer.
- Now that we have resolved the difficult volume manufacturing problem, we will aggressively expand our distribution network. We intend to utilize the very successful relationships we have developed with Rx Xpress, a pharmacy, and Dr Vinton's Pain Clinic, both in Grove City, PA as a template to expand to other cities throughout the US, Canada, Mexico and the rest of the world.
- We intend to work with Amazon to further expand the sales through our web site at: painreliefmeds.com as well as from our direct distributors.
- A potential European distributor has contacted us to investigate the possibility of a drop-ship agreement. We are still working with them to resolve all issues. We intend to attempt to develop other off-shore distributors as our business expands.
- We have been working with the Chronic Illness Bloggers, a worldwide group to request them to evaluate the effectiveness of our products to relieve pain. We have had a number of very positive evaluations to date and have included these evaluations in the many voluntary testimonies we have received to date since we went into this business February 1, 2017. We expect more positive evaluations of our current products from this group and will utilize their excellent services to evaluate each new product we develop.
- Many of the voluntary testimonies that we have received to date indicate that the users of our products were able to achieve true pain relief and stop the use of dangerous opioid painkillers. Since we have seen estimates that opioid-related deaths now exceed the death rate from automobile accidents, we believe that the time is right to petition the national and state agencies to evaluate our all-natural, pesticide-and-solvent-free products as a recommended alternative to opioid-based dangerous prescription pain pills which often lead to heroin addiction and death.
- We are working with the Veterans Administration (VA) to secure their endorsement to use our topical pain relief products in lieu of opioid pain products in their hospitals. We have prepared a presentation and are starting our process with VA personnel. Our plan is to take our proposal to the national level as soon as possible via our established contacts.
Investor/Public Relations Programs.
- In an effort to broaden our product exposure and boost our pain product sales, we have an Investor Relations firm promoting our company and products on social media. We are expanding our social media marketing campaigns, including Facebook, focusing on the 50+ age demographic, which past experience has indicated is our prime market.
- I plan to continue promoting Premier Biomedical, and providing updates on our progress through 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 first half, 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.
- Now that we have resolved the product formulations and volume manufacturing to our specifications, we are attempting to expand our distributor networks both within North America as well as off-shore.
- We are in the process of developing, and launching several additional pain relieving products which we intend to spot-market test.
We have been very busy building our business, and now that we have resolved the basic issue of developing an industry-best formulation and a volume manufacturing system, we are poised to expand our business geometrically. We thank our loyal stockholders and pledge that we will continue our efforts on their behalf. We thank you for your continued support.
William A. Hartman
President and CEO
Premier Biomedical Inc.
About Premier Biomedical, Inc.
Premier Biomedical, Inc. (OTCQB: BIEI) is a research-based publicly traded company that intends to discover and develop medical treatments for a wide range of diseases in humans. Premier has obtained, via exclusive license agreements, the technology behind three granted US Patents, multiple pending provisional patents, and a PCT Europe National Patent. Founded in 2010, Premier has partnered with the Department of Defense with Center of Expertise at the William Beaumont Army Medical Center and the University of Texas at El Paso (UTEP). The company's R&D efforts are centered in El Paso, TX, and their business offices are in Western Pennsylvania. The Company is a fully-reporting issuer whose common stock trades on the OTCQB marketplace maintained by OTC Markets Group, Inc. under the ticker symbol "BIEI." For more information please visit our website: www.premierbiomedical.com/.
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.