The business has made huge leaps forward in the past two months and the following comments are a reasonable summary of progress.
Diabetes NSW and VictoriaDiabetes Australia has finally confirmed they will range NutriKane D online and in their stores and have also invited us to their forums. The first forum was Albury on the 13th June and we experienced very good interest and responses from the Albury / Wodonga ADEA people. The next event is on the 13th July in Sydney. We are also advertising in the DA NSW magazine “Circle” and expect to see distribution expand into other state branches based on success of NutriKane D in these key states.
Diabetes New Zealand
Diabetes New Zealand has expressed keen interest and we expect them to recommend NutriKane to their members.
Education sessionsEducation sessions are held regularly to explain to distributors and salespeople the real health and medical benefits of NutriKane. Importantly, as a food-registered product, there are label and language restrictions on how the product is communicated to the market and the Education sessions are also used to explain which messages are to be used. MediKane’s communication team always attend the sessions.
Individual ‘practitioner’ distributors
These newly appointed teams have had very positive feedback from customers (Naturopaths, Nutritionists and Herbalists) and repeat orders are now being received after successful sampling
Royal Melbourne Hospital – To buy NutriKane D
RMH will purchase NutriKane for ward use (as advised by the Professor who did the Clinical trial). This will provide a great start to sell into the other 58,000 beds in major hospitals in Australia. The clinical trial clearly demonstrated that NutriKane outperformed existing products and saves the hospitals money. We see this as a bigger and quicker path to market than originally anticipated.
We have appointed a distributor for Queensland who specialise in distribution of a wide range of nutraceutical products to Health Care Professionals. They have access to 2,500 practitioners and a broad reach into our target markets. The distributor will first target practitioners but this could be broadened quickly.
Sanofi (a global pharmaceutical company that sells insulin for diabetics)
MediKane has been invited by Sanofi to include NutriKane D as a recommended product in their Diabetes Health Hubs. The Hubs are a new concept in trial in selected chemists throughout Australia. They have 50 Hubs in operation with plans to grow this based on the positive feedback to date.
MSD (another global pharmaceutical company)
MSD have expressed interest in NutriKane and invited MediKane to present to their diabetes division, and are also linking us with a Singapore hospital.
The Mindd FoundationThe Mindd Foundation Board invited MediKane to partner with them and have requested a meeting to finalise launch options for NutriKane M. This new product (already developed) can be distributed through our other channels as well as through the Mindd Foundation’s own channels. We participated in a Forum in Sydney recently where product was showcased and sold to customers.
Based on the success of attending and exhibiting at conferences in March and June, we now have confirmed 2 new opportunities in Melbourne and Adelaide in July and August. These have provided valuable leads and sales either through the website or distributors.
The Royal Melbourne Hospital clinical trials
A paper from the first clinical trial has now been published in an international medical journal ‘Disability and Rehabilitation‘. The paper from the second trial has also been accepted for publication in the Journal of Rehabilitation Medicine. The papers are now going to be presented to an international medical forum in October.
Promotions campaign ready to go
We are just waiting on the final approval to release the results of the RMH Clinical trial. The campaign will cover many aspects of social media. We are already using Google Ad-words very successfully and (with additional funding) this program will be significantly extended to drive sales.
MediKane’s Chinese distributor is financing a large production run of two Chinese packs. A stick-pack (like the original Australian stick-pack) and a sachet like NutriKane D. A new logo NutriKane (as shown) has been developed for China.
Expansion of sales base
We are evaluating proposals from several Singapore distributors to sell NutriKane in South Asia.
Discoveries from the ARC research team and internal research has identified up to a further 10 patents that will add value to the business. The research has been enlightening and of significant potential commercial value, but details cannot be disclosed until the IP has been protected.
Quality Control Procedures
MediKane has continued to extend the scope of its natural products quality control procedures. Natural whole grains that are a cornerstone of MediKane products, can also represent a pest risk. A new low temperature freezing (-20°C) treatment program to reduce or eliminate such risks for specific ingredients has been introduced. The purpose of the low temperature treatment is to ensure retention of the nutritional value of the ingredients, but avoid chemical or heat treatments. This process further ensures consistent and well managed ingredient validations, and is a natural process not considered by many food manufacturers in the world. This is the path that MediKane continues to follow in ensuring quality products, and to maintain the distinction of our approach in the market.
InvestmentWe have raised funds for marketing, sales and promotional work, and expect to raise more shortly. This was done via many different means including people within the team’s personal
networks but also independent investors. We presented and exhibited at a forum at the Shangri-La in Sydney recently and also at the Singapore Stock exchange. This does dilute all existing shareholders but is essential until we reach break-even point. It is planned that any further investment after that point will be minimal.
It was a very pleasant surprise that at both the Sydney and Singapore investor events and presentations, there was unprecedented interest in the product itself. Many potential investors showed interest in investing in MediKane purely because of the evidence of how well NutriKane works and the way the story is now being told.
A new investor with strong connections with Chinese communities
Based on extensive connections in Australia and New Zealand, this distributor / investor has advised that his network can bring 6,000 customers in 3 months using a channel that will make little to no impact on existing distributors.
Recent investors have valued the company at $15 million, which means we are all on track to make very high returns on our initial investments.