Vitro Announces Open Letter to Its Shareholders: 2012 Results Drive Strong Performance in 2013
Golden, Colorado—December 11, 2012—Vitro Diagnostics, Inc. (OTCQB: VODG), dba Vitro Biopharma, announced the following open letter to its shareholders:
Dear Fellow Shareholders:
I am pleased to report our progress during 2012 including significant advances in our business focused on the development, manufacture and commercial distribution of essential tools to support adult stem cell research and clinical development.
The highlights of our achievements in 2012 include:
- A new and improved website featuring E-commerce of our products, expanded technical and investor relations information and utilization of social media to expand awareness of the Company and its products.
- Establishment of distribution of our products through Neuromics, Inc., a privately held firm in Minneapolis, MN focused exclusively on sales of a variety of products to support life science research.
- Attendance and technical presentation at the International Society for Cellular Therapy Annual meeting resulting in increased collaborative opportunities and product sales.
- Establishment of a distribution agreement with Stemgenesis, Inc. for the exclusive distribution of our products into select Chinese Provinces.
- Launch of new products with application to enhancement of cellular therapy of articular (joint) diseases and injury & filing of a US Patent application to expand our near-term product pipeline.
- Continued support and business development by our FSH patent licensee resulting in advancements in fertility drug manufacturing, distribution and regulatory approvals for treatment of human infertility, a multi-billion dollar global market that continues to expand.
There is more detail about these events published on our website: www.vitrobiopharma.com.
A key advancement that occurred in 2012 was increased product distribution leading to increased revenue generation. We have previously demonstrated significant competitive advantages of our MSC-Gro™ Brand of cell culture media optimized for mesenchymal stem cell (MSC) growth and differentiation, including increased cell growth, cellular recovery and shelf-life. While sales of this product line developed more slowly, I am now pleased to announce that sales of our lead MSC-Gro™ product (Low-serum complete MSC-Gro™ medium) have grown substantially since commercial introduction including a 114% increase in sales during 2012 compared to 2011 and a 9.5-fold increase in the early stages of our 1st quarter 2013 compared to the entire 1st quarter 2012. Sales of our other MSC-Gro™ media products and MSC-based cell lines have also increased. Our
Annual report for 2012 is currently underway and we will report 2012 earnings as this report is filed with the SEC. I attribute increased distribution of our products to our competitive advantages, recognition of product quality by customers and increased awareness of these products through our improved website and distribution partnerships.
Our primary corporate objective is the attainment of profitability and earnings growth. With the platform now established, our operations are focused on increased manufacturing capacity to maintain appropriate inventories to support increased product sales. We are now adding needed human resources, equipment and raw materials to serve our customers as rapidly as possible and to continue our marketing program to enhance awareness of our products and technology to our global markets. Our management team is seasoned and experienced in the issues faced by a growing biotechnology operation and provides superior guidance to support our growth. We are also committed to the expansion of our product lines to expand revenue opportunities. For example, we have recently added human chondrocytes derived from human MSCs and plan additional new products. Chondrocytes produce collagen and are essential to the function of joints. Stem cell therapy of injured or diseased joints is a very active area of clinical research that shows pre-clinical support of safety and efficacy of MSC-based therapy. Thus our new products provide important tools to advance cell therapy of injury, diseases and regeneration of joints. MSC therapy may eventually be developed to allow for regeneration of injured or diseased joints, without the necessity of using artificial joints. We plan to launch additional new products during 2013 to support and sustain our revenue growth.
While our initial products target research use, we are also expanding our offerings to include products with clinical application. We now have select MSC-Gro™ products with clinical application and intend to strengthen these products in 2013 through appropriate regulatory filings with the FDA. It is especially important that cell culture media products do not contain human or animal serum and are chemically defined to minimize potential contamination of cultured cells that are subsequently administered to patients to test for clinical benefit. This, serum-free, chemically defined media is classified as a medical device and requires much less time and money to achieve FDA approval than new drugs or biologics. Approval of a medical device typically requires less than one year and only laboratory testing while drugs and biologics can require 8-10 years, extensive clinical trial testing and cost $0.5 to $1 billion to gain approval, which is not guaranteed. We are also developing cellular products targeting therapeutic veterinary applications. Furthermore, through our interactions with local physicians, we are exploring additional clinical applications of our products and technology.
It is also important to recognize that our capital structure and expenses are well suited the attainment of profitability and earnings growth. Management has pursued its corporate development without requiring extensive outside capital and resultant dilution of shareholders. Hence, we have less than 20 million shares outstanding, relatively modest expenses and high gross profit margins. We are thus well positioned for rapid turn-around and earnings growth. Since the sale of our diagnostic operations in 2000, I have personally contributed substantially, both financially and in development of our products and technology, to our corporate development and remain firmly committed to the achievement of solid financial performance of Vitro Biopharma.
I greatly appreciate the support provided by our shareholders and look forward to continued progress in the development of our business. We are also privileged to work in the field of adult stem cell technology where there are substantial opportunities to develop new treatments of significant diseases and injuries and to also contribute to the advancement of regenerative medicine.
James R. Musick, Ph.D.
President, Chairman of the Board and CEO
Safe Harbor Statement
Certain statements contained herein and subsequent oral statements made by and on behalf of the Company may contain “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are identified by words such as “intends,” “anticipates,” “believes,” “expects” and “hopes” and include, without limitation, statements regarding the Company’s plan of business operations, product research and development activities, potential contractual arrangements, receipt of working capital, anticipated revenues and related expenditures. Factors that could cause actual results to differ materially include, among others, acceptability of the Company’s products in the market place, general economic conditions, receipt of additional working capital, the overall state of the biotechnology industry and other factors set forth in the Company’s filings with the Securities and Exchange Commission. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulations, the Company disclaims any intent or obligation to publicly update these forward looking statements, whether as a result of new information, future events or otherwise.
Source: Vitro Diagnostics, Inc.