TORONTO, April 20, 2004 (PRIMEZONE) -- Swiss Medica Inc., (OTCBB:SWME) announced today that the Biotech Stock Review has recently added it to its Watch List and issued a Corporate Profile on the Company. The Biotech Stock Review, which was launched in 2002, specializes in companies that derive benefits from health care related technologies, including those in the Biotech, Nutraceutical and Medical Device industries.
"We are excited to initiate coverage on Swiss Medica Inc., which in our opinion has recently launched one of the most effective Topical Pain Relief (TPR) products currently on the market today," stated Roland Perry, editor of the newsletter. "The market for non-prescription pain relief products in 2003 exceeded $2.6 billion in the U.S. alone, which suggests to us that the opportunity for a well-marketed, 'superior' pain relief product is tremendous in scope. This is not a market which needs to be developed, it exists today. In addition, as the 'O24 Pure Potent Pain Relief' product is all-natural, the short time to market is equally impressive and unhampered by the need for lengthy and costly clinical trials. Further, there is growing desire by many consumers to utilize 'all-natural' solutions to avoid any of the potentially addictive, adverse and in some cases, life threatening complications associated with prescription pain relief products -- which is a $12 billion market in the U.S. alone."
"We're pleased that the Biotech Stock Review has agreed to provide coverage for us. We firmly believe that it's important to get and have continued professional coverage, for both our current shareholders and future ones," stated Raghu Kilambi, CEO of Swiss Medica. "We are well aware of the work that the Internet PR Group (IPRG) has done for its clients in the past through its various industry specific newsletters, and look forward to working closely with them. The 'O24 - Pure Potent Pain Relief' product offers tremendous potential for Swiss Medica and its shareholders, and we look forward to IPRG's continued reporting on our progress, especially as we begin to implement our aggressive marketing initiatives and efforts."
"While modestly financed and capitalized, we see an incredible opportunity for Swiss Medica. What excites us most about the 'O24' product is we can personally attest to its incredible effectiveness," continued Roland Perry. "It's not often we get the opportunity to work with a Company whose products we can personally endorse. As firm believers in 'the cream rises to the top', we are categorically enthusiastic for what the future holds for Swiss Medica now and when it launches additional 'natural-based' health care solutions into the U.S. consumer market."
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"O24 - Pure Potent Pain Relief for when it "really, really hurts" is all natural. What differentiates O24 from the other topical products is their patented delivery system. Most all the other OTC topical products have chemical or alcohol binders that bind their active ingredients together. These non-natural binders can reduce absorption of their products into the skin and can lead to limited efficacy of their products. O24's patented binding process is all natural - thus O24 absorbs quickly into the skin and deals with joint pain very quickly and effectively - some believe that O24 offers near prescription-level pain relief.
"Since October of 2003, Swiss Medica has made some very impressive announcements with regards to distributors agreeing to carry the product," stated Roland Perry "and will additionally be launching a direct response campaign (shopping channel and/or infomercial) before the year is out, which could greatly enhance the brand awareness and build awareness in the Company as a publicly traded vehicle."
We note the following milestones and accomplishments which were announced during the previous six months:
1. On April 19, 2004 the Company announced that The Katz Group of Pharmacy retailers has agreed to sell O24 Pain Relief through their 1600 retail locations across Canada. Swiss Medica will be distributing O24 Pain Relief to The Katz Group via McKesson Corp. (NYSE:MCK), one of the largest distributors to North American pharmacies.
The Katz Group is one of North America's leading drugstore operators with system sales of $4 billion. The company operates over 1700 drugstores in Canada and the United States with over 15,000 employees.
2. On March 29, 2004 the company announced that it had raised $2.5 million from a group of institutional and high net worth individuals. In a press release issued in conjunction with the financing, Raghu Kilambi stated that, "This financing will give Swiss Medica the ability to aggressively launch O24, our patented pain relief product, in the US market with full support from television and print ad campaigns. It will also allow us to pursue carefully selected strategic and accretive acquisitions."
The stated goal of Swiss Medica is, "...is to be a leader in the multi-billion dollar Bioscience and Nutraceutical product industry and commercialize products that will tremendously enhance people's lives."
Acquisitions will be focused on chronic ailments where there is significant spending on chemical prescription and OTC solutions, i.e. cholesterol, diabetes, weight loss, erectile problems, heart health and depression-mental health ailments.
Because all the chemical solutions are very expensive and have significant side effects, there is huge potential of proprietary healthy natural solutions to build a significant revenue base. All of the above mentioned areas have billions of dollars of annual spending on chemical solutions. UTEK (AMEX:UTK), a leading technology transfer firm, will be presenting to the company several interesting proprietary products in the near term.
3. On March 23, 2004 the Company announced that it has named Alliance Retail Management Group, Inc. as its manufacturer's representative in Canada within the retail drug trade. Alliance Retail Management Group is one of the largest pharmaceutical brokerage companies in Canada, selling to retail outlets such as Shoppers Drug Mart, The Katz Group, and Jean Coutu.
4. On March 18, 2004 the Company announced Puresource, Inc. will serve as its primary distributor for natural product retail outlets. Puresource is the leading natural products distributor in Canada and represents more than 270 manufacturers from around the world through a network of over 2,500 Canadian retailers.
5. On February 9, 2004 the Company announced that GNC will be stocking O24 Pain Relief in their retail locations in Canada.
General Nutrition Companies Inc. ("GNC"), based in Pittsburgh, PA, is the largest global specialty retailer of nutritional supplements, which include sports nutrition products, diet products, VMHS (vitamin, mineral and herbal supplements) and specialty supplements. GNC operates more than 5,000 retail locations throughout the United States, including over 1,300 domestic franchise locations, along with locations in over 30 foreign markets including 147 locations in Canada.
6. November 24, 2003 the Company announced that it reached an agreement with Asenda to distribute O24 Penetrating Pain Relief to their extensive network of independent pharmacy retailers. Asenda is a full-line pharmaceutical wholesale organization, serving over 700 licensed pharmacies and growing in Western Canada. Asenda is widely recognized for superior service, available six days per week. Asenda is based in Richmond, British Columbia, where they began over 15 years ago.
7. October 24, 2003 the Company announced that Nutrition House Canada Inc. has signed an agreement to carry Swiss Medica's O24 Penetrating Pain Relief product in their retail locations across Canada. Nutrition House is a Canada-wide national retail chain with over 80 locations and total sales exceeding $50 million and growing.
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About Swiss Medica Inc.
Swiss Medica commercializes proprietary bioscience products that relieve chronic ailments. We increase our market share through focused distribution strategies in multiple sales channels. Swiss Medica's mission is to be a world leader in the commercialization of life enhancing bioscience products that improve quality of lives. Please visit our websites at www.swissmedica.com and www.O24zone.com.
Forward-looking statements in this news release are made pursuant to the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to the ability to close transactions being contemplated, risks related to international sales and potential foreign currency exchange fluctuations, continued acceptance of Swiss Medica's products, increased levels of competition, technological changes, dependence on intellectual property rights and other risks detailed from time to time in Swiss Medica's periodic reports filed with the United States Securities and Exchange Commission and other regulatory authorities.