As we close in on the end of this year, I would like to take this opportunity to provide further insight into some of the most strategic milestones we’ve achieved at CURE Pharmaceutical as an organization this year and how they will position us for continued success through 2021 and beyond.
The tactical steps we have taken in 2020 have further positioned our company as an integrated healthcare company, allowing for exponential growth in both the pharmaceutical and wellness categories. They allow us to further capitalize on our existing core competencies while expanding our verticals into areas that generate revenue in the wellness market through our newly acquired subsidiary The Sera Labs. The diversification strategy we employed is intended to build upon our legacy of success in pharmaceutical drug delivery and innovation, while growing to become a revenue-generating healthcare holding corporation with expertise in not only product development but sales and distribution of high-impact health and wellness solutions. This newly integrated model will allow CURE to generate revenue on our existing technologies in a wellness vertical, without the need for partners.
The most critical step in executing our strategy was the acquisition of The Sera Labs, a multi-channel marketing and branding company with expertise in the direct-to-consumer channel as well as wholesale/ retail sectors. The Sera Labs has a proven track record of success in driving revenue on high-margin products utilizing an ROI with their more than 20 products in the health & wellness, beauty and pet categories, which are all part of CURE’s portfolio as of the acquisition, with no plans to slow down.
At the helm of SeraLabs®’ success is Founder and CEO Nancy Duitch. Prior to starting SeraLabs®, Nancy was known for launching well-known consumer products that generated over $3 billion in retail revenue globally. A few of those successes include the Ab Roller, one of largest-selling products on the market, topping $334 million in retail sales in one calendar year, as well as Sobakawa Pillow, Botopical, and Bun & Thigh Max, to name a few. Since then, she founded and grew two additional CPG companies with her latest venture being The Sera Labs, where in just two years, she and her team have built a platform of innovative health, wellness and beauty CBD products and an incredible network of buyers, retailers and more than 140,000 customers and 500,000 customer databases to date.
Witnessing the exploding consumer interest in CBD-based products, where BDS Analytics estimates the industry could be worth over $20 billion by 2024, SeraLabs® had assembled a team that includes some of the nation’s top talent from operations to project management, finance, retail sales, digital, marketing, and branding.
An illustration of how we are capitalizing on our synergies as an integrated healthcare company was the launch of Nutri-Strips™, which happened just weeks after the acquisition. Utilizing CURE’s patented and advanced oral thin film strip technology, Sera Labswas able to develop a marketing and branding strategy which is ready for execution under the trademark name Nutri-Strips with RAD3 (Rapid Activation Delivery) to deliver novel vitamins and supplements to consumers across the nation. These products are currently available in a variety of formulations to meet consumers specific needs: Sleep A.S.A.P.™ is the line’s first product, designed to help people get to sleep and stay asleep, and EnergY™ to enhance performance and mental focus, and RecoverB™ for electrolyte and muscle recovery will be launching shortly. Since the acquisition, we have expanded on our strategy, with a digital and national satellite radio campaign, which are both launching this week and can be purchased at getsleepasap.com. I could not be more confident in The Sera Labs team and our ability to grow together in this burgeoning market. This is a perfect example of how we are going to diversify CURE’s offering through this acquisition, forming a vertically integrated health and wellness company.
Beyond the acquisition of The Sera Labs CURE reached additional milestones in the pharmaceutical vertical, receiving additional certification for our 25,000-square-foot manufacturing lab in Oxnard, California. The new certification enables manufacturers like us to become independently certified by NSF as complying with cGMP requirements as listed in Section 8 of NSF/ANSI Standard 173. These requirements are consistent with the published cGMP regulation for dietary supplements published by the U.S. Food and Drug Administration (FDA). This certification positions CURE’s manufacturing capabilities at the forefront of quality standards set by the various regulatory agencies and ensures to our customers and partners that we are fully dedicated to safety and consistency at every stage of production, manufacturing and warehousing.
Finally, I would like to highlight a positive milestone we achieved within our research on drug delivery, specifically our proprietary drug delivery system CUREfilm®. We received very positive results from a Pharmacokinetic (PK) study where we examined the bioavailability of our delivery system as compared to soft gels, a common delivery system for pharmaceutical and nutraceutical APIs. The results showed significantly higher maximum serum concentration (~3x increase in Cmax) and a faster onset/absorption (~3x decrease in Tmax), compared to the reference product. With no product safety concerns shown through the study, we believe this only further validates and emphasizes the superiority of our delivery system when compared to traditional alternatives.
As we look to 2021 and the future, it’s important to note that our drug delivery research and development including CUREfilm®, CUREpods® and CUREdrops® remain a cornerstone of our pharmaceutical programs and we plan to continue to research their advantages and develop working relationships with pharmaceutical partners to bring these drug delivery technological breakthroughs to patients who need them most, in the US and internationally. On the wellness side, through SeraLabs® we plan to continue to innovate our product offering and how we are reaching consumers. An example of that innovation is a new “tele-wellness” platform that we are developing that will provide consumers with a remote consultation on their overall well-being while suggesting products from our portfolio that may lend to their general health and wellness. This is exactly the type of forward-thinking venture that CURE’s newly integrated structure will lend to.
I hope that this provides the investment community with some additional insight into the direction of the company, the significance of some of the announcements we have made and how we plan to capitalize on the opportunity before us in the coming months. As a leading drug development, delivery and wellness company, it is easy to see how the addition of SeraLabs®, along with their expertise in bringing products to market and generating revenue, could prove quite advantageous for CURE. We now have the entire infrastructure to not only conceptualize, research and develop products, but market and sell them globally. Our future is bright, and I could not be more confident in the direction we are headed as an organization and our ability to achieve our vision of delivering the promise of healthier lives to patients and customers world-wide.
Forward Looking Statement
Statements CURE makes in this letter may include statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”), which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions.CURE intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act and is making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements include, without limitation, the ability to successfully market the partnered products, the difficulty in predicting the timing or outcome of related research and development efforts, partnered product characteristics and indications, marketing approvals and launches of other products, the impact of pharmaceutical industry regulation, the impact of competitive products and pricing, the acceptance and demand of new pharmaceutical products, the impact of patents and other proprietary rights held by competitors and other third parties and the ability to obtain financing on favorable terms. The forward-looking statements in this letter reflect CURE’s judgment as of the date of this letter. CURE disclaims any intent or obligation to update these forward-looking statements. This letter shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of our securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.