Clinics to Serve as Platform for Launching New 'Veterinary First' Pharmaceuticals
Entest Seeks to Acquire 5 Veterinary Clinics with a Total Target Revenue of Over $4 Million
SAN DIEGO – August 18, 2010 – Entest BioMedical Inc. (OTCBB:ENTB) today announced that it has identified five veterinary clinics as possible acquisition candidates. It is the intention of Entest to utilize these clinics as sources of near term revenue to be used to support research and development as well as distribution channels for products such as ImenVax™, the Company's immuno-therapeutic canine cancer vaccine currently in development.
David Koos, Chairman & CEO of Entest BioMedical, stated, "The biotech business model is broken and we are turning this model on its head. Typically, biotech companies are unable to generate revenue for an extended period of time. The acquisition of profitable veterinary clinics would result in immediate revenue generation to support operations and R&D. We chose to initially focus on the veterinary medicine market, since the cost and time to market for these products are much lower than human therapies. We are also excited about the potential for growth in the clinics' core business, along with economies of scale associated with multiple clinics. Initially, we have identified five veterinary clinics located in California as potential acquisition candidates. In aggregate, these clinics have generated historical revenue of over $4,000,000 per year.
"We have a unique opportunity to acquire these clinics at attractive multiples, consisting of some cash, stock and an earn-out to ensure the interests of the veterinarian business owners are aligned with those of our shareholders," Mr. Koos continued, "Our ultimate goal is to build a profitable, veterinary medicine incubator that will allow us to effectively and efficiently launch our own proprietary therapies, such as ImenVax™, as well as third-party therapies, with attractive near-term commercial prospects. By utilizing this 'veterinary first' model, we can offer emerging pharmaceutical companies a much faster path to commercialization, which can then be leveraged into human trials."
According to the Humane Society, there are currently 77,500,000 pet dogs within the United States. Approximately 1 in 4 dogs die of cancer and this disease kills nearly half of pet dogs over age ten. Commenting on this data, Mr. Koos concluded, "The canine cancer market is an extremely large and underserved market niche. Our strategy to acquire veterinary clinics, coupled with our immuno-therapeutic cancer vaccine, will position Entest at the forefront of this industry.
About Entest BioMedical (www.entestbio.com)
Entest BioMedical is a developer of veterinary medicines that harness the animal's own reparative/immunological mechanisms. The company's products include immunotherapeutic cancer vaccines for canines (ImmenVax™ I, II & III) and a stem cell therapy treatment for Chronic Obstructive Pulmonary Disease (COPD) in thoroughbred race horses (ENT‐576™). The company's immuno-therapeutic cancer vaccine utilizes an encapsulation device as the vaccine delivery system and requires a simple implant procedure. The immuno-therapeutic cancer vaccine utilizes the animals own cancer cells in order to induce an immune response. The company's proprietary ENT‐576™ program for COPD incorporates "homing" stimulator technology that directs stem cells to diseased lung tissue. This approach could cause damaged tissue to regenerate with potential to alleviate symptoms and reverse lung damage.
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