Letter to Shareholders, October 17, 2005
10/17/05
October 17, 2005
Dear Shareholders,
When we launched Swiss Medica in June 2003 our goal was to commercialize a family of healthy proprietary bioscience products that relieve chronic ailments that impact all of us or our loved ones. Since then we have launched O24™ Pain Neutralizer, O24™ Fibromyalgia and PMS Escape™ nationally in the United States and Canada.
Our focus has always been to acquire and/or license patented over-the-counter health products that are all-natural, clinically tested and address chronic ailment categories that are currently dominated by prescription drugs. We believe these attributes are what differentiates us from our competition.
To recap some of our successes over the past 2+ years:
· Our revenues for the six months ending June 30, 2005 were over US$2.5 million, compared to approximately US$600,000 in revenues for all of calendar 2004.
· We have expanded our product distribution to over 19,000 retailers (up from 300 as of December 2003) in Canada and the United States the top three drug store retailers in the United States (CVS, Walgreens and Rite Aid) and all major mass/food/drug store chains in Canada (Shoppers Drug Mart, Loblaws and Wal-Mart Canada to name a few).
· We have clinically tested and are now in the process of launching in Canada and the United States O24™ Fibromyalgia as the FIRST focused product for Fibromyalgia available in national retailers. Fibromyalgia is a chronic muscle-skeletal pain ailment that effects over 10 million Americans. The National Fibromyalgia Association has bestowed upon us their official seal of approval and O24 Fibromyalgia is the first product to receive that honor.
· We have acquired the exclusive licensing rights to PMS Escape™ the first and only clinically tested and patented over-the-counter dietary supplement for the management of mood, appetite and the ability to concentrate associated with pre-menstrual syndrome, a market that effects up to 27-million women in the Unites States alone. PMS Escape™ is now available nationwide in CVS Pharmacy.
· O24 Pain Neutralizer has received strong endorsements from recognized leaders in sports and media (Larry Holmes, Bill O’Reilly, Mike Gallagher), medical professionals (Dr. Gordon Ko, , Chris Broadhurst, trainer for the Phoenix Coyotes) and consumer associations (regional arthritis groups in North America).
· We continue to expand and enhance our management team by bringing on board executives with strong industry background and the skills and drive to take us to the next level.
Over the next 18-months Swiss Medica has several major goals:
· Expand our retail distribution from our current focus on drug store chains to mass market, food and convenience retailers
· Achieve national distribution of our products in professional channels such as pain management clinics, chiropractors and hospitals
· Launch other world class patented, clinically tested safe and effective products for chronic ailments such as depression and cholesterol
· Build Swiss Medica into a leading consumer healthcare brand focused on elite over-the-counter health products for chronic ailments.
· Generate net income, positive cash flow and create substantial shareholder value
Swiss Medica has come a long way since its launch in mid 2003. The coming year is one of great promise and tremendous opportunity. I urge you to visit our websites www.swissmedica.com, www.024zone.com and www.pmsescape.com to learn more about our company and products. I am confident that you will join the thousands of people who have used our products to enhance the quality of their lives.
Thank you for your continued support of Swiss Medica.
Raghu Kilambi, CA
CEO
Swiss Medica Inc.
