Nutra Pharma Corp., a biotechnology company that owns rights to intellectual property related to the development of drugs for HIV and Multiple Sclerosis, has announced that it has signed a definitive agreement with NanoLogix, Inc. (Pink Sheets:NNLX) that will allow Nutra Pharma to market and distribute diagnostic test kits designed for the rapid isolation and identification of infectious diseases such as Tuberculosis (TB) and Mycobacterium avium-intracellulare (MAI).
"Nutra Pharma has designed a clear marketing and distribution strategy for these kits," commented Rik J Deitsch, President and CEO of Nutra Pharma. "We are organizing a group of experts in the field of mycobacteriology to promote and support the growth of this technology globally. These diagnostic test kits allow researchers to more rapidly identify outbreaks of certain diseases, providing them with access to additional data which may lead to more effective treatments. We expect the sale of these kits to provide the first revenues to Nutra Pharma by the second quarter of 2006," he added.
The agreement includes the following:
- NanoLogix will reassign to Nutra Pharma 11 key patents protecting the diagnostics test kit technology in exchange for Nutra Pharma's entire holding of NanoLogix stock (over 4.5 million shares).
- NanoLogix will license to Nutra Pharma the remaining 18 patents that protect the diagnostics test kit technology in exchange for a 6% royalty on the gross sales of the products based on the licensed technology.
- Nutra Pharma will issue 1 million options of Nutra Pharma restricted common stock to NanoLogix at $.20 per share.
- Nutra Pharma will allow NanoLogix to continue their use of these patents for development of their hydrogen technology and other technologies unrelated to medical diagnostic test kits.
"Acquiring this technology is important for Nutra Pharma," said Stan Cherelstein, Chairman of the Audit Committee of Nutra Pharma. "These test kits address a global market that approaches $300 million annually. The anticipated revenues will greatly improve the Company's cash flow, help build Nutra Pharma's market valuation, and aid in financing the ongoing drug discovery research without diluting its shareholders," he concluded.
This press release 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"). Acquiring the patents and licenses to NanoLogix's medical test kits should not be construed as an indication in any way whatsoever of the value of the Company or its common stock. 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.