Ray Dirks Research Initiates Coverage on Plandaí Biotechnology with $3 Price Target
Ray Dirks Research: Plandai Biotechnology (PLPL) May 23, 2013 by Ray Dirks
Ray Dirks Research Initiates Coverage on Plandaí Biotechnology with $3 Price Target
Ray Dirks and his team of money managers and security analysts are initiating coverage of Plandaí Biotechnology, Inc. (PLPL), a specialty biotechnology company based in Seattle, Washington that focuses on the production of proprietary botanical extracts for the health, wellness, pharmaceutical, anti-aging, beverage, and nutraceutical industries. Plandaí intends to sell its extracts to end users as well as to nutraceutical and supplement companies.
Ray Dirks Research is projecting price targets for Plandaí Biotechnology, Inc. of $1.00 for the Short Term (6 to 9 Months) and $3.00 for the Long Term (1 to 3 Years).
Impressively diversified to contain control and manage costs, Plandaí’s operations also include the farming of whole fruits and vegetables, and live plant material, and the company produces and sells timber and agricultural products from its 8,000-acre farm and tea estate holdings in South Africa.
Reinforcing our opinion, on Wednesday, May 1, 2013, Stock House Group initiated coverage of Plandaí with a “Speculative Buy” rating. Amongst other things, Stock House Group noted that Plandaí’s contention that their technology is the foundation for creating an entirely new family of drugs that can treat a broad spectrum of diseases and conditions safely and affordably using naturally derived extracts.
Building upon our own thorough due diligence, Ray Dirks Research suggests that our readers/investors, whether they are individual investors, institutional investors or advisers, promptly begin their due diligence on this potentially explosive company by going to Yahoo Finance to read the report by Stock House Group, which we are summarizing in the following paragraphs, to wit:
“Stock House Group heavily weighed the company’s patented technology, its highly bioavailable Phytofare™ branded products, the biotech’s integrated business model, and the strong leadership team that’s driving Plandaí and has written a comprehensive report to support the rating.
In published USDA studies, Plandaí’s proprietary plant extractPhytofare™ Caratenoid Extract, has shown to have improved bioavailability – the degree to which a substance becomes available to the target tissue after administration – of between 60-80%, far exceeding anything available today.”
Now that the company is readying for production of its proprietary, preventative products, including Phytofare™ Catechin Extract and Phytofare™ Limonoid Glucoside Complex, Plandaí is quickly making inroads to markets globally.
On May 9, Plandaí reported that it has broken into the South Africa markets through a distribution agreement with Natural Products, granting the company exclusive rights in the country to develop and market a weight management product using Plandaí’s Phytofare™ Catechin Extract. Natural Products specializes in producing and selling Maxi™ nutraceuticals through an Internet client base and directly to pharmacists and wellness retailers in South Africa.
Plandaí’s Phytofare™ Catechin Extract is processed to deliver a highly bioavailable, antioxidant-rich material to a level many times that of other green tea extracts available on the market. Research has shown that green tea gallate catechins are extremely active antioxidants and in a bioavailable form, are able to protect the red and white blood cells against attack
On May 2, Plandaí announced an agreement with Willows Ingredients, Ltd. of Ireland, a distributor of raw materials for food, healthcare, sports and animal nutrition industries, to distribute Plandaí’s Phytofare ™ extracts into European markets.
“Agreements like the one with Willows Ingredients will ensure that as we expand production of our Phytofare™ extracts, we will have robust distribution channels already in place in order to achieve corresponding sales growth,” said Callum Baylis-Duffield, Vice -President and Global Director, Marketing Sales for Plandaí in a corporate statement, explaining the succinct business plans of Plandaí.
Echoing the potential, Willows Ingredients’ Managing Director, David Scrivens, added, “We are very excited to have entered into partnership with Plandaí Biotechnology to market and sell the Phytofare™ range of products in Europe. We feel the Phytofare™ range will be excellent products for both our existing customers and potential new customers and fit perfectly as part of our continued expansion across the European Health and Supplement areas.”
This agreement perfectly dovetails with an announcement earlier in the month in which Plandaí inked an agreement with Nutra-Genesis, a diversified nutraceutical product marketing company, to sell and market Plandaí’s patented Phytofare™ extracts under a 3-year distribution agreement. The agreement grants Nutra-Genesis rights to sell and market Phytofare ™ to its client base in North America.
“The agreement with NutraGenesis demonstrates the faith they have in Phytofare™ and we expect NutraGenesis to play a key role in our global distribution strategy. This is just one of a number of global distribution relationships that we expect to announce that will introduce Phytofare ™ in a variety of markets worldwide, said Plandaí’s Baylis-Duffield. The mantic comment was of course followed by the Willows and Natural Products announcements, signaling investors to pay close attention to the verbiage in press releases for even more agreements in the future.
“We are pleased to secure this agreement for Phytofare™ extracts and look forward to initiating our distribution efforts. NutraGenesis believes that Plandaí’s extracts will be well received by its client base in North America,” said Suzanne McNeary, president of NutraGenesis.
Moreover, on April 22, Plandaí said that it had entered into a license agreement with Phyto Nutricare, PLC, a UK company, which will oversee all aspects of developing and marketing Phytofare ™ extracts for nutraceutical applications. Importantly, this is a revenue generator for Plandaí, something few junior biotechs can lay claim to as they stamp footprints worldwide.
Under the terms of the agreement, Phyto Nutricare will pay Plandaí a one-time license fee $2,000,000 and then a recurring payment equal to five percent of future profits from Phytofare ™ product sales. Sales of Phytofare™ are expected to commence in Q4 of 2013.
Plandaí Chief Executive Officer, Roger Duffield, commented, “Our foremost goal over the short term is to bring Phytofare ™ products to market and begin generating revenues. Phyto Nutricare is tasked with bringing our products to market in the nutriceutical arena, which covers supplements, food and drink additives, cosmetics, healthcare, and related fields. This is a multi-billion dollar industry that has heretofore been plagued by ingredients that suffer from a lack of bioavailability. Botanical extracts are especially prevalent in everything from skin cream to energy drinks. Unfortunately, the way other suppliers produce their extracts, results in products that have very little active antioxidant properties and virtually no ability to be absorbed by human tissues.”
“Phytofare™, in contrast,” explained Mr. Duffield, “is made from living plant material, so we capture the antioxidants while still active. We then are able to re-arrange the molecular structure of the catechins and reduce them to nano-particle size, resulting in a product that is vastly more absorbable by human cells. This maximizes the effectiveness of the benefits of green tea, and will finally allow product manufacturers to finally deliver on their health and wellness claims.”
“Licensing the development and distribution of Phtyocare™ products to PhytoNutricare allows Plandaí to focus on the development of new extractions and the pursuit of new pharmaceutical drug targets,” Mr. Duffield added.
Investors of all types are beginning to see the business model of Plandaí starting to unfold as the potent technologies of the company are arching across the globe, explaining the share price appreciation since late in March from around 5 cents to the area of 50 cents. We feel strongly that this is just the beginning of Plandaí reaching its near and long term potential with what we believe are conservative estimates for a company that could capture a significant market share in a nutraceutical market that is estimated at $29 billion in the United States alone.
Ray Dirks and his team of money managers and security analysts suggest that you should also do your due diligence, including reading past Articles on each of the companies listed above
Ray Dirks recommends that investors limit their investment in the securities of any one company to no more than 1% of the funds that they are allocating to common stocks. It’s best to diversify.!!
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