Thursday, April 07, 2011 6:34:39 PM
Investor Relations,
I am a long term shareholder of your company and a true believer in your products. The recent 10K indicates that Cobroxin sales are less than 1/20th of the forecast provided by the CEO over a year ago , which makes me worried about the company's viability. Cobroxin's sales this year have dealt a heavy blow to shareholder confidence and the credibility of the management to execute the business plan effectively. Why hasn't the CEO updated the shareholders regarding the under-performance of XCHO marketing spend and what is the company's plan to fix the situation? The shareholders who have financed and supported your company and products deserve an at least an update from the management regarding the XCHO fiasco and the strategy going forward.
And this is the vague response I got back:
Paul,
Understand that when our CEO made sales forecasts for Cobroxin early in 2010, Nutra Pharma had just done more than $1M in early Cobroxin sales. Forecasts from XenaCare clearly indicated continued growth and the product had just been introduced into CVS and Walgreens. We had no way of knowing that XenaCare would fail to properly advertise the product or follow-through on contractual sales promotions. Those forecasts were valid at the time they were made.
The Company has been clear that we have been dissapointed in the actions (or lack thereof) of our Cobroxin Distributor, XenaCare. While we have very little control over XenaCare's actions, we can control our own. To that end, we have spent the last 6 months in scaling up production and distribution of Nyloxin and have delivered our first orders in the first quarter of this year. We expect Nyloxin sales to far outstrip Cobroxin sales by the 3rd Quarter as we roll the product out across the US and into the International markets.
We will also be seeking new distribution of Cobroxin to replace the efforts of XenaCare over the next several months.
Please stay informed by subscribing to our press releases, blog posts and Twitter updates. For more information, please visit www.NutraPharma.com.
I hope that this information is helpful,
Investor Relations
Nutra Pharma Corproation
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