Mission: To discover, develop and commercialize nutritional products to improve health, manage chronic disease and enhance existing therapies that are patentable and are substantiated by well-controlled clinical trials conducted at leading university research centers. PacificHealth Laboratories’ (PHLI) principal areas of focus include weight loss, management of type 2 diabetes, and sports performance.

Research Strategy: Utilizing two core technology platforms, PHLI has been a pioneer in developing patented protein-based nutritional products that activate biochemical pathways to enhance muscle performance and growth and stimulate specific peptides involved in appetite regulation. These products do not require FDA approval.

Research Focus:
Weight Loss/Type 2 Diabetes. Development of nutritional formulations that stimulate the body’s major satiety peptides is a major area of research. Satiety peptides have been shown to reduce food intake and suppress appetite in humans. The Company has six patents on its technology. Multiple trials with its patented formulation have demonstrated a reduction in food intake of up to 20%. PHLI has instituted a clinical trial to measure weight loss over an extended time. PHLI’s formulation can also be added to food to increase the satiation properties of the food. Last year US expenditures on weight loss products and services exceeded $50 billion.

PHLI’s appetite suppressant technology has potential to treat type 2 diabetes, the fastest growing chronic condition in the US, affecting an estimated 46 million people. PHLI has instituted clinical trials to measure the effectiveness of its formulation in controlling blood glucose.

Exercise Performance. PHLI’s research into factors influencing exercise performance and muscle growth and recovery has led to the development and commercialization of a new generation of sports drinks proven in 18 published studies to extend endurance, reduce muscle damage, improve rehydration and accelerate muscle recovery. Two patents have been issued on these formulations and additional patents are pending. The cornerstone of these patents is the combination of carbohydrate and protein in a precise ratio.

Post-Surgical Muscle Recovery. Scientific insights emanating from PHLI’s discoveries in sports nutrition have led to a potentially new and exciting medical application. Individuals undergoing orthopedic surgery, particularly involving the shoulder, hip or knee, experience muscle atrophy that occurs as a normal consequence of muscle immobilization in the post-surgery period. The degree of muscle atrophy a patient experiences significantly impacts health care costs and quality of life. PHLI is currently evaluating a novel nutritional formulation that has the potential of slowing muscle atrophy following a period of forced immobilization. Such a product could have enormous benefit for the 1.6 million patients who undergo arthroscopy and muscle and knee replacement operations each year, and the 5 million patients who suffer a sports related injury. A clinical study to examine the effectiveness of this formulation is underway. PHLI has filed one patent on this technology and plans to file additional patents in the future.

Oral Rehydration. Another scientific byproduct of PHLI’s research on the effect of protein has been the identification of nutritional formulas that can enhance sodium transport. Such products would have widespread medical application in treating dehydration commonly associated with vomiting and diarrhea. PHLI anticipates completing studies and filing patents for this indication in 2006. The market for oral rehydration products is estimated to be $500 million.

Commercialization Strategy: PHLI employs multiple strategies for the commercialization of its technologies: (1) launch a brand via highly targeted consumer channels; (2) license the technology to a major food or drug company or; (3) a combination of (1) and (2).

To that end, PHLI sold their sports drink technology and brands, Accelerade® Sports Drink and Endurox® R4 Recovery Drink, to Motts, LLP for a significant upfront fee and an ongoing royalty stream. Mott’s is a leading brand in the beverage portfolio of Cadbury Schweppes Americas Beverages, one of the largest producers of soft drinks and premium beverages in the Americas. As part of the transaction PHLI was granted a royalty free license for the continued sale and distribution of the powder and gel versions of these brands.