MONTGOMERY, Texas--(BUSINESS WIRE)--Oct. 23, 2002--Endovasc Ltd. Inc. (OTCBB:ENVC), a biotechnology firm with two revolutionary cardiovascular drugs approved for final FDA phase III trials, announced today that it has signed a Letter of Intent with XM International d/b/a Basic Research Inc. Basic Research is one of the largest nutraceutical companies in the U.S. with over $50 million in annual sales revenues (est. 2002). The company is also the fastest-growing and most profitable vendor for General Nutrition Center (GNC), a subsidiary of Royal Numico N.V. (NUTV.NA). GNC is the market leader in the field of nutritional supplements in the United States, with over 5,300 stores throughout the U.S. as well as additional locations in 26 foreign markets.
According to the Letter of Intent, Basic Research will invest $2.5 million in developing, commercializing and marketing a vast array of nutraceutical products built on Endovasc's current technology portfolio. In addition, Basic Research has agreed to pay Endovasc a 10% royalty on all revenues generated by these nutraceutical products. The current market size for the U.S. nutraceutical market is estimated to be approximately $28 billion annually.
"We look forward to teaming up with one of America's fastest-growing nutraceutical companies," says Dr. David P. Summers, chairman and chief executive officer of Endovasc Ltd. Inc. "We believe this is a perfect fit for both companies. Endovasc is one of the first companies to focus on products that stimulate new blood vessel growth that is required for therapeutic muscle repair, increased strength and stem cell recruitment, effectively differentiating itself from traditional nutraceutical products. Basic Research will be able to capitalize on our leading research and then manufacture, package, distribute and market the new products to consumers through its extensive distribution network."
According to Dennis Gay, president and CEO of Basic Research, "Based on extensive due diligence we have conducted on Endovasc's technologies, we believe we will be able to launch our first joint product by Jan. 1. We are confident that the combination of Endovasc's cutting-edge technology and our ability to commercialize and sell nutraceutical products will enable us to increase our sales to $100 million next year."
For nearly ten years, Basic Research subsidiaries have been applauded as innovators in the weight control industry. The companies have enjoyed coveted industry accolades like: "Best Up and Coming Product" and "Best Seller" from Whole Foods (Nasdaq:WFMI), and three consecutive awards of "The Silver Vity" from Vitamin Retailer magazine.
Endovasc's products include Angiogenix(TM), the revolutionary new treatment that has shown to recruit the body's own stem cells that help grow new heart vessels to relieve chest pain and improve heart function; Liprostin(TM), a liposomal prostaglandin-based treatment that studies suggest will prevent restenosis (re-blockage of arteries), increase circulation and reduce leg pain due to poor blood flow; biodegradable stents; drug-delivery stents and newly discovered nutraceutical applications that may accelerate development of muscle mass and treat obesity in overweight diabetic women. Endovasc believes that its nutraceutical nicotine-based drinks, fitness bars or capsules (which, according to the company, will contain nicotine levels too low to be habituating or to cause the typical euphoria effects from smoking) combined with high-protein complexes could become blockbuster nonprescription products, producing positive cash flow even sooner than its later-stage drugs because they are not subject to the FDA approval process.
Endovasc Ltd. Inc., established in 1996, is a biotechnology company focused in the area of cardiovascular disease, pioneering drug delivery technology designed to deliver and release drugs to their intended targets in an efficient and controlled manner. The company's pipeline of products and processes include: Liprostin(TM), ANGIOGENIX(TM), PROStent(TM) stent-coating technology and a biodegradable stent prosthesis.
The foregoing statements are made under the "Safe Harbor" Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements that involve risks and uncertainties that may not be evident at the time of this release. For more information about Endovasc, please visit www.endovasc.com. (Investor questions and requests for materials can be submitted online.)