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Re: lentinman post# 204

Friday, 01/12/2007 2:02:49 PM

Friday, January 12, 2007 2:02:49 PM

Post# of 585
My pick is PHLI:

My DD follows -

Business Summary:
PacificHealth Laboratories, Inc. engages in the discovery, development, and commercialization of protein-based nutritional products. Its products stimulate specific peptides involved in appetite regulation and activate biochemical pathways involved in muscle performance and growth. The company’s principal areas of focus include weight loss, management of Type 2 diabetes, and sports performance. PacificHealth Laboratories was founded in 1995 and is headquartered in Matawan, New Jersey.

My Summary:
PHLI sold their sports drink assets to Cadburry-Schweppes (NYSE: CSG) in February 2006 for $4M up front and an unspecified royalty on CSG's sales of bottled Accelerade. As part of the deal PHLI licensed back the right to sell Accelerade powder concentrate and their "Accel gel" sports gel (essentially to continue their business as ussual). But now CSG will be paying the promotion costs to build the brand....and PHLI's sales of Accelerade powder concentrate and Accel gel should also benefit from the increased brand exposure. All that being said, what's most important is Accelerade does what it claims, it increases endurance and reduces muscle damage (next day muscle aches). I actually felt a noticible difference when drinking this stuff on bike rides this summer....and believe most people who give it a try would agree.

CSG hasn't introduced their bottled version yet, but has already begun to promote it. They recently sined-up to sponsor some big marathon events where Accelerade will be the official sports drink provided at drink stands along the race course. The following was posted on the company's poweringmuscles blog on 1/4/07:

Cadbury-Schweppes, makers of the forthcoming bottled, ready-to-drink Accelerade, recently signed a deal with event promoters Elite Racing to make Accelerade the official sports drink of all Elite Racing events in 2007:

P.F. Chang's Rock n' Roll Arizona Marathon (January 14)
Country Music Marathon and 1/2 Marathon in Nashville (April 28)
Rock n' Roll Marathon in San Diego (June 3)
Rock n' Roll Half-Marathon, Virginia Beach (September 2)
Philadelphia Distance Run (September 16)
Rock n' Roll Half-Marathon, San Jose (October 14)


This entry from their poweringmuscles blog on 11/20 seams to suggest their might be an energy bar in their piepline too:

Sorry you haven't heard from me in a while. I was at PacificHealth Labs headquarters in Matawan, NJ, for planning meetings most of last week and didn't have time to update the blog. I come away from those meetings very excited about 2007. We've had our struggles in the past, but we've overcome the worst of them and the future is looking bright.

I will have lots of exciting news to announce here in coming weeks. Let me start by telling you about some of our new products. We have two new flavors of Accel Gel ready to debut by spring: Key Lime and Raspberry Cream. I got to try both and they are delicious. And, like the existing Accel Gel flavors, they are easier to swallow than the competing gels.

Our new energy bar is almost ready for production, too. We're starting with a chocolate flavor bar. I know I'm biased, but I swear it's one of the best-tasting bars I've ever tried. The consistency is more brownie-like than most bars--that is, more like a baked product, because it is in fact baked instead of extruded. It features the same 4:1 carb-protein ratio as our drinks and it's the only energy bar with a functional rationale for every ingredient. No fillers or useless calories!

Finally, all of our existing products are getting a packaging makeover to bring them in line with the look of the new, ready-to-drink Accelerade that's coming out in April.


Finally, PHLI also just launched the website for their new appetite suppressant, diet shake on 1/8/07:
www.satiatrim.com

The company is also looking to license their proprietary appetite suppressant technology as a food ingredient:
http://www.foodnavigator-usa.com/news/ng.asp?n=68397-pacifichealth-satietrim


PHLI DD links -

Company website:
http://www.pacifichealthlabs.com/site/index.html

Accelerade website (recently updated):
http://www.accelerade.com/index2.php

Powering Muscles website (company blog):
http://www.poweringmuscles.com/index2.php

Dutton Associates Research Report:
http://www.jmdutton.com/research/phli/reports/phli_report_091106.pdf







"Our houses are such unwieldy property that we are often imprisoned rather than housed in them." - Henry David Thoreau, Walden: Economy, 1854

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