Just over 2 weeks ago, we posted a press release to our website outlining a new line of cost-effective contract research services offered to startup and small biopharmaceutical companies. While it may be a surprise to many that we are opening our doors to other companies, we believe that by using the tools, labs, and certifications we already have in place, we can provide a much needed service, while at the same time become more financially sustainable.

What is financial sustainability? For Nutra Pharma, this means positioning the company in such a way that we will require less, or no, reliance on external sources of capital to cover our ongoing R&D burn rate.

For the past several years, Nutra Pharma has been primarily funded by our Chairman and CEO, Rik J. Deitsch. Even though the company is as strong as ever and Mr. Deitsch has committed to continuing to support the company, it would still be in the best interest of our shareholders to move the company towards becoming financially sustainable. Our contract research services provide the first step in that direction.

As we continue to gain traction with our new services, we are also planning to introduce an additional business unit focusing on over-the-counter products that has the potential to provide us with immediate revenue. Although we cannot provide details on the scale or scope of this project, we do plan to release additional information over the next several weeks.

With all of the discussion surrounding financial sustainability, it is important to emphasize that our goal remains, first and foremost, to continue developing our drug pipeline. We are researching several exciting drug candidates, and as many of you already know, our pipeline contains several potential blockbuster indications, including Multiple Sclerosis (MS). Becoming financially sustainable does not detract from this focus; it simply allows us to be better positioned for long-term success.

To ensure that you receive the most recent news, updates, and blog posts from Nutra Pharma, be sure to subscribe to Nutra Pharma E-Alerts.

SEC Disclaimer
This article contains forward-looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in Nutra Pharma's ("the Company") business plan. The Company's business is subject to various risks, which are discussed in the Company's filings with the Securities and Exchange Commission ("SEC"). The above article, " Nutra Pharma’s Focus on Financial Sustainability", should not be construed as an indication in any way whatsoever of: (a) the Company’s financial value; and/or (b) any predictive value of the Company’s future stock price. The Company's filings may be accessed at the SEC's Edgar system at www.sec.gov. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place reliance on such statements. Unless otherwise required by applicable law, we do not undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.

               

4 Comments

It is nice to see the company adjust its short-term plans given the current market conditions!

Comment by Alex — April 16, 2009 @ 8:01 pm

I have seen a lot of promising startup biotech companies go under early because of the rising costs of pre-clinical and clinical trials. I hope that you can help support some of these in the future…

Comment by Nick — April 16, 2009 @ 10:34 pm

First, let me commend you as a biopharmaceutical company for having a blog. Even though you’re smaller than some of the others, I am impressed on your commitment to be transparent. Your strategy is interesting – a mix of drug discovery and pharmaceutical services. Not a bad way to leverage your technical knowledge.

Comment by JCD, RN — April 17, 2009 @ 6:36 am

More companies need to focus on “financial sustainability”. That’s what separates those that progress and those that fail…

Comment by Ed Bradford — April 17, 2009 @ 3:15 pm

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