Greyson International, Inc. (GYSN)

[rayovac812]

Credit killerbee

New article in the OTC Investor

http://theotcinvestor.com/greyson-gysn-develops-versatile-delivery-technology-1618/

Greyson (GYSN) Develops Versatile Delivery Technology

By Justin Kuepper · Monday, December 10th, 2012

Cosmetics may be fun to use for customers, but there’s a lot of work that goes on behind-the-scenes. In fact, a single product on the shelf can take dozens of scientists many years to create, while billions of dollars are spent on research and development each year. These developments continue to drive the multi-billion dollar industry to new highs.

To syndicate this article, or for more information, please contact us online or call [phone].

The U.S. cosmetics market alone is projected to grow from $62.9 billion in 2011 to $78.4 billion by 2016, representing a compound annualized growth rate of about 5%. A third of this market consists of color cosmetics and skin care products, with anti-aging products growing the fastest due to the large population of baby boomers seeking a more youthful appearance.

Trilexon® Capitalizes on These Markets

Greyson International Inc. (Pink Sheets: GYSN) is a skincare company that could dramatically reshape the cosmetics industry. The company’s newly patented Trilexon® technology allows the finest ingredients to be released topically for an extended period of time, while maintaining the skin’s natural intracellular barrier to promote natural moisture and lipid levels.

Through these extended release and improved barrier mechanisms , the technology has a play in many different end markets. Initially, the company is targeting the $11.3 billion color cosmetics industry with its game-changing Trilexon® foundation product. Leveraging the Trilexon® delivery technology, the foundation reduces blemishes, wrinkles and fine lines, providing a more uniform facial surface for these color products, like make-ups, blushes and eye shadows.

Capturing just 1% of the color cosmetics industry in just the U.S., through the in-house sale of its foundation or joint venture agreements, equates to over $113 million in potential revenues for the company. With a market capitalization of just $11.4 million, these revenues could lead to a stock price of around $0.87 per share, assuming just a price-to-sale multiple of just 1.0x.

Trilexon®’s Many Other Potential Uses

Greyson International’s Trilexon® technology is applicable to many other industries beyond the cosmetics industry. With the ability to effectively deliver active ingredients topically, the technology has another major play in the over-the-counter (“OTC”) and prescription pharmaceutical industry with skincare drugs that could benefit from greater efficacy.

For example, ROGAIN® is a popular foam product that helps regrow hair in 85% of men who use it everyday for four months. The company’s Trilexon® technology could help improve the efficacy of ROGAIN® by releasing the active ingredients on the scalp over an extended period of time, while also helping the scalp retain moisture and remain comfortable throughout the day.

These uses are beneficial for a couple of different reasons. First, ROGAIN® alone represents an enormous revenue opportunity with some $42 million in sales in 2007 alone. But perhaps more importantly, reformulating off-patent pharmaceutical products is a great way for pharmaceutical companies to extend their patent lives and maintain higher profit margins.

The $6.5 billion U.S. “cosmeceuticals” market, which includes hair loss treatments, is expected to continue growing at a rate of 5.8% per year through 2015. Capturing just a fraction of this market and the OTC pharmaceutical market could result in hundreds of millions of dollar of additional potential revenues for the company down the road.

Strong Potential for Investors

Greyson International represents a strong potential investment, given its existing products on the market and wide-ranging potential ahead. With a market capitalization of just $11.4 million, the stock could be significantly underpriced, if the company is successful in rolling out its products onto the market and capitalizing on these opportunities.

And if history is any guide, the company’s management team may be just the right people to accomplish this goal. Chairman and CEO Harvey Tauman founded and led Hydron Technologies Inc. for some 30 years, among other companies, helping the stock rise from $0.15 per share to about $150.00 per share in a single year, adjusted for three stock splits.

Many other members of the management team and board members have had experience working for companies like L’Oreal (Pink Sheets: LRLCY), Revlon Inc. (NYSE: REV) and Bristol Myers Squibb Co. (NYSE: BMY). Combined, they represent an excellent team capable of executing on the enormous market opportunity ahead.