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PALM DESERT, CALIFORNIA HEALTH CARE PROFESSIONALS LUNCHEON SEPTEMBER 29TH, 2005 Company – NSEand & Pharmanex CREDIBILITY BACKING • $1 Billion+ in Annual Sales • D&B 5A-1 Rating • 20 Year Track Record • $4 Billion Commissions Paid • $600 Million in Paid-for Assets • $120 Million Cash in Bank • Operating in 41 Countries • Divisionally Diversified • Publicly Traded – NYSE (NUS) The Birth of Pharmanex •Director Medicinal Chemistries, MERCK •Identified need for quality control and standards in unregulated nutritional industry •Achieved $50 million/yr in sales •Purchased by Pharmanex in 1998 for $135 million Over 125 PHD level Scientists Disciplines including • Botanists • Pharmacognosist • Natural Product Specialists • Medicinal, analytical and process chemists • Quality control specialists • Biochemists • Molecular biologist • Pharmacologists • Toxicologists Pharmanex Scientific Advisory Board Brilliant Minds Endorse... • Lester Packer – Antioxidant Miracle. Father of antioxidants. “This validates my life’s work.” • James Rippe, MD - Tufts, Boston (Cardiologist) • James Balch, MD – author The Prescription for Nutritional Healing - 8 million copies sold • Koji Nakanishi – Columbia, Father of Ginkgo Biloba research • Carl Dierassi – Stanford, birth control pill. • Chi - Huey Wong – Scripps Institute, appointed to the National Academy of Sciences Selection To locate the botanicals with the most effective health-promoting properties, Pharmanex employs teams of experts from the United States and Asia. These teams conduct exhaustive research-compiling, reviewing, and summarizing historical use and current intelligence about a botanical's properties and health benefits. Pharmanex also conducts original research to identify new botanicals, coordinating with noted professionals at Purdue University, Kansas University, Columbia University, Scripps Research Institute, and Beijing University, among others. Only botanicals that pass extensive Pharmanex tests for authenticity, usefulness, and safety are considered. Sourcing Once Pharmanex decides to proceed with a particular botanical, a team investigates potential sources of the botanical and conducts exhaustive analyses on samples from each source. Sources may be domestic or international and may include Pharmanex cultivation areas in China and Chile. Pharmanex chooses a supplier based on the quality and concentration level of the active ingredient(s) present in samples from that source. Structure Using state-of-the-art analytical techniques and working in collaboration with respected universities and laboratories in both China and the United States, Pharmanex conducts structural analyses of the natural compounds present in the selected botanical. These analyses isolate and purify specific chemical structures in standardized extracts, a critical step in ensuring a safe and effective botanical. Standardization Wide variations in active ingredients are characteristic of any botanical. For example, when Pharmanex analyzes potential Ginkgo biloba leaves, studies reveal the concentrations of active components will vary by as much as 300% depending on season, climate, soil, method of harvest, storage conditions, and processing. Pharmanex optimizes the active ingredients of a product through strict, proprietary standardization processes (to at least one relevant marker molecule). Each capsule of a Pharmanex product contains the same amount of each active ingredient. Safety Pharmanex is leading the way in establishing strict standards to ensure the safety of its products. Scientists research and document the history of a product's use and safety. Pharmaceutical-grade tests for the presence of microbes, toxins, and heavy metals are carried out for all products. The active ingredient amount used is based on dosages found effective through clinical trials and is backed by published data on file at Pharmanex. Each product label details directions for use and contains appropriate warning information. Substantiation Pharmanex only makes product claims that have been substantiated through documented preclinical and clinical studies. Existing clinical data are reviewed, and when necessary, Pharmanex sponsors studies of its products. Data from some of these studies are subsequently submitted to major international journals for review. This adherence to scientific standards for substantiation helps make Pharmanex a leader in the natural healthcare product industry. First Supplement with all 3 Certifications! • NSF (www.nsf.org) – Exhaustive formulation & toxicology analysis – FDA, cGMP, NSF, ANSI compliance • BSCG (www.bscgi.org) – Free from 80+ banned substances by IOC, WADA, USADA, NFL, NCAA • ConsumerLab.com (www.consumerlab.com) – Ingredient verification – Only MVMS to test and pass in 6 categories Substantiation As of 2004, nine of the Pharmanex Products are now listed in the Physician’s Desk Reference (PDR) Now… Let’s talk BUSINESS Wealth Creation Creating a RESIDUAL INCOME BASE – Separating Yourself from your Production of Income Is the ONLY way to create WEALTH – true FINANCIAL FREEDOM. BABY BOOMERS 76 Million Strong The longest and Strongest Demographic Trend in Business History They decide what’s ‘the next big thing’ 1946 0 yrs. 1964 1982 2005 18 yrs. 36 yrs. Mini-Vans Mortgages 59 yrs. Mustangs Anti-Aging BABY BOOMERS Oldest Youngest 1946 0 yrs. 76 Million Baby Boomers Mustangs 1964 18 yrs. Mini-Vans Mortgages Anti-Aging 36 yrs. 59 yrs. 1982 2005 0 yrs. 18 yrs. 40 yrs. Diapers Mustangs MTV Anti-Aging For the 1st time ever, the Health and Wellness Market will experience the full weight of the Baby Boomer Economic Demand! THE NEXT BIG THING "The amount of ANTIOXIDANTS that you maintain in your body is directly proportional to how long you will live.“ Dr. Richard Cutler, Director of the AntiAging Research Department of the National Institute of Health(NIH), Wash D.C. Fact The fastest growing market is in Health and Wellness which was $300 billion last year and is projected to rise to $1 trillion by the year 2010. Baby boomers are 25% of the population and represent 50% of the spending. The Problem Free Radicals are unstable molecules that cause cell and DNA damage; They are a by-product of metabolism. Indisputable 30,000 Published Papers Document the link between Free Radical Activity and Disease Eye Health NIH Studies - .Age-Related Eye Disease Study Research Group (AREDS). A Randomized, Placebo-Controlled, Clinical Trial of High-Dose Supplementation With Vitamins C and E, Beta Carotene, and Zinc for Age-Related Macular Degeneration and Vision Loss. Arch Ophthalmol 2001;119:1417-1436. Age-Related Eye Disease Study Research Group (AREDS). A Randomized, Placebo-Controlled, Clinical Trial of HighDose Supplementation With Vitamins C and E and Beta Carotene for Age-Related Cataract and Vision Loss. Arch Ophthalmol. 2001;119:1439-1452. Packer L. Antioxidant properties of lipoic acid and its therapeutic effects in prevention of diabetes complications and cataracts. Ann N Y Acad Sci 1994;738:257-264. Christen WG, Jr. Antioxidants and eye disease. Am J Med 1994;97 Suppl. 3A:14S-17S. Eye Disease Case-Control Group. Antioxidant status and neovascular age-related macular degeneration. Arch Opthomol 1993;111(1):104-9. Gerster H. Antioxidant vitamins in cataract prevention. Z Ernahrungswiss 1989;28:56-75. Seddon JM, Ajani UA, Sperduto RD, et al. Dietary carotenoids, vitamins A, C, and E, and advanced age-related macular degeneration. Eye Disease Case-Control Study Group. JAMA 1994;272:1413-1420. Snodderly DM, Evidence for protecting against age-related macular degeneration by carotenoids and antioxidant vitamins. Am J Clin Nutr 1995;62:1448S-1461S. Most of What Kills Us Degenerative Diseases Cancer Heart Disease Diabetes Age Related Macular Degeneration Cataracts The aging process itself! Aging Symptoms “You’re not getting older, just your DNA” (Headline from an article in Popular Science, August 2002, p.44) All Around Us Sources: Sunlight, Stress, Toxins, Pollution, X-rays, Radioactivity, Airline travel, Medications Metabolism – Calories & Oxygen (75K) Smoking = 10 Billion free radicals per cigarette! The Solution Antioxidants combat free radicals to prevent cell damage and maintain health; we get these from fruits, vegetables, and vitamin supplements No one gets it In a survey of 21,500 people, not a single person consumed a 100% of RDA for the 10 most important nutrients! Did you eat 6-10 Servings* of Fruits and Vegetables Today? *as recommended by the National Cancer Institute It is now Unanimous… After decades, the American Medical Association does a 180º turn RDAs “Enough to prevent deficiency, but not enough to prevent disease” June 19, 2002 “We recommend that ALL ADULTS take a multi-vitamin daily” You are now under doctors orders! Which product? With so many choices, how do you know which Antioxidant supplements to buy? How does a healthcare professional know what to recommend to their patients... and whether it works or not? The Missing Link The ability to MEASURE is the basis of SCIENCE This has been the missing link in the nutritional industry! What if…… April 6, 1992 On Antioxidants vs. Free Radicals …Antioxidants may one day revolutionize health care. …Screening people through a simple...test to assess how much damage free radicals have done to tissue, much as patients today are screened for high cholesterol. Biochemist, William Pryor, director of the Biodynamics Institute at Louisiana State University “The Future” is NOW! ANTIOXIDANT LASER SCANNER MAKE NO MISTAKE: There is nothing else like the ANTIOXIDANT LASER SCANNER The Team PERSONNEL Werner Gellermann, Ph.D. Igor Ermakov, Ph.D. Robert McClane, M.E. Paul Bernstein, Ph.D, M.D. Nikita Katz, Ph.D Da-You Zhao, M.D. Tissa Hata, M.D. Lynn Pershing, Ph.D. Theresa Scholz, M.D. Steven Gray, M.D. Randy Jensen, M.D. Ph.D Center for Bio-Medical Optics Protected by Patents Key Patent issued March 20, 2001 8 Patents Total in the US, Europe and Asia Global Exclusive Rights acquired Global Exclusive Rights to this Technology from the U of U for $110 Million.... For the next 16 years! Global Exclusive Rights IT’S THE ONLY ONE OUT THERE. This gives Pharmanex a LEGAL MONOPOLY Simple Physics A blue light laser is directed into the palm of your hand, and in about 3 minutes you see your total Antioxidant level... Noninvasively! Site of Action Blood and urine tests can be altered by a few meals. It takes 4-6 weeks or longer for antioxidants to reach skin cells. Only Pharmanex can measure at the “Site of Action.” Cell Body: Site of Action! Brilliant Minds Endorse... • Lester Packer – Antioxidant Miracle. Father of antioxidants. “This validates my life’s work.” • James Rippe, MD - Tufts, Boston (Cardiologist) • James Balch, MD – author The Prescription for Nutritional Healing - 8 million copies sold • Koji Nakanishi – Columbia, Discovered Ginkgo Biloba • Carl Dierassi – Stanford, birth control pill. • Chi - Huey Wong – Scripps Institute, appointed to the National Academy of Sciences Everyone “Everyone should use the Pharmanex Bio-Photonic Scanner to learn their Optimal Body Defense Score. Once you have your number, work to increase it and maintain it with a diet rich in fruits, vegetables and vitamin supplements” Lester Packer, PhD. UC Berkeley As Quoted on CNN/Money.com Widely Acclaimed •NBC •CBS •CNN Money •Physician’s Desk Reference •Logan College Of Chiropractic •Much, much more. Accepted by Scientific Community • New York Academy of Sciences, Feb 2003 • Oxygen Club of California, Feb 2003 and Feb 2004 • FASEB/American Society of Nutritional Sciences - April 2003 and April 2004 • Gordon Research Conference, Jan 2004 • American College of Nutrition, October 2004 2005 American Business Awards MOST INNOVATIVE PRODUCT In the United States ANTIOXIDANT LASER SCANNER How do we RAISE our Antioxidant Score? Eat Healthier 4 Cups of Green Tea 10 Tablespoons of Peanut Butter 50 Cups of Mangos 59 Slices of Cheddar Cheese 27 Cups of Green Peas 11 ½ Cups of Peanuts 20 Small Apples 16 Cups of Squash 16 Large Potatoes 9 Cups of Cooked Rice 21 Slices of White Bread 14 Slices of Whole Wheat Bread 23 Cups of Pineapple 13 Medium Sized Bananas 65 Cups of Asparagus 30 Cups of Milk 10 Cups of Tomatoes EVERY DAY! A better solution OR TAKE LIFEPAK TWICE A DAY! (Healthy eating and exercise are still a good idea) LifePak Antioxidants Vitamin A,C, E, Selenium, Manganese Copper, Zinc, Lutein Lycopene Alpha-Lipoic Acid Folic Acid Phytonutrients Quercitin Grape Seed Extract Green Tea Extract What is LifePak? A comprehensive, bioavailable nutritional wellness supplement delivering the optimum amounts of all essential and beneficial nutrients, with Pharmaceutical-grade testing and standardization. NOT Just Another Multivitamin .... SupplementWatch.com SupplementWatch rates LifePak #1! “LifePak has been the subject of two clinical studies designed to assess the antioxidant benefits of the product – quite a significant fact when you consider that we know of NO other supplement companies that have sponsored clinical studies on their multivitamin products.” “We applaud Pharmanex for their efforts in this regard.” LifePak Clinical Study FASEB Journal 1999 Vol.13(4): A546 8 7 6 PL MVMS 5 (means +/- SD) p < 0.001 Serum Vitamin E 6.248 4 3 3.429 3.305 3.477 2 1 0 Baseline Endpoint LifePak Clinical Study FASEB Journal 1999 Vol.13(4): A546 140 120 PL MVMS 100 p < 0.001 (means +/- SD) Serum Vitamin C 94.3 80 60 67.4 68.1 70.6 40 20 0 Baseline Endpoint LifePak Clinical Study FASEB Journal 1999 Vol.13(4): A546 65 60 55 PL MVMS (means +/- SD) p < 0.001 Inhibition of LDL Oxidation 50 50.9 45 43.4 40 42.1 42 35 30 Baseline Endpoint NSE Prospective LifePak Supplementation Study • 30 employees who have not taken antioxidant supplements or LifePak within the last 3 months. • 12 weeks on LifePak • Measure BioPhotonic response every 4 weeks. • Diet & Lifestyle Questionnaire Effect of LifePak Supplementation 45000 40000 33173 30000 29463 25000 26858 20000 19950 15000 10000 5000 p < 0.01 0 0 p < 0.01 4 8 Time (weeks) 12 V. Low | Low | Mod.| High 35000 Individual Changes, Days 1-28 45,000 n = 25 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Day 1 Day 28 #1 Product Top Revenue Supplement in the World Top Supplement certified banned substance free by the USOC Shipped directly to each customer 20% - 30% rewards program every month! G3 Ingredients Gac juice (Momordica cochinchinensis) Cili juice Siberian Pineapple Chinese Lycium With Highly Bio-Available Lipocarotenes™ Beta-Carotene (mg/g wet wt.) 800 718 700 600 500 10 x more than carrots! 400 300 200 100 48 76 79 0 Spinach Carrot Ishida et al., J Agric Food Chem 52:274, 2004 Sw.Potato Gac aril Zeaxanthin in Chinese Lycium (mg/g wet wt.) 1000 900 800 700 600 500 400 300 200 100 0 800 40 x more than yellow corn! 18 Yellow Corn Ch.Lycium Vitamin C in Cili Fruit (mg/100g wet wt.) 2500 2500 2000 60 x more than oranges! 1500 1000 500 0 30 Mandarin 45 Orange 71 Kiwi Cili Lycopene (mg/g wet wt.) 2500 2227 2000 70 x more than tomatoes! 1500 1000 500 0 31 Tomato 41 Watermelon Ishida et al., J Agric Food Chem 52:274, 2004 54 Guava Gac aril Pharmanex controls the world-wide production of Gac and Cili Recorded Benefits • Increases energy • Anti-aging properties • Promotes eye health • Strengthens Immune System • Fights cancer • Improves circulation • Regulates cholesterol • Promotes Prostate health • Facilitates optimal bioavailability of key nutrients • Promotes skin health • Promotes vascular health • Promotes would healing • Protects skin from UV damage • Fights heart disease • Prevents stroke • Stabilizes blood pressure • Promotes better digestion • Promotes prostate health • Bolsters immune system • Promotes liver health • Eases headaches • Promotes sexual health • Promotes vitality ABSOLUTE PROOF FINALLY SOMEONE PUTS THEIR MONEY WHERE THEIR MOUTH IS! Free re-scan every 30 days 100% Money Back Guarantee! Only Pharmanex can provide on-going measurement and motivation to every patient! Controlling the Market The market size What if 1 Company Controlled for all Nutritional Cholesterol Testing Worldwide? Products in North What if they also had the only America for 2001 proven solution? was Cholesterol is now a $20 Billion industry $49.5 Billion Dollars Program Benefits • • • • • • Adds Excitement to the Practice New Patients Acquisition Patient Recall Patient Retention Residual Income Base Opportunity to leverage income through scanner placement program Complete Turn-Key Program • Staff Training & Support • Product & Technical Support • Marketing & Promotional Materials Requires very little HCP/Staff time • Less explanation necessary • Product shipped directly to patient from Pharmanex • Pharmanex takes care of billing, back office - everything! Income from Scanner Income Sources: $10 Profit from Scanning (Charge $20, $10 Profit Share w/staff) $10 “Scan Bonus” per new patient on LifePak ADP $10 Per patient per month they remain on LifePak $5 “Re-scan Bonus” to re-scan patient every 30 days $190 Total per patient per year Scanner Income: 50 patients on LifePak: $9,000/yr. 100 patients on LifePak: $18,000/yr. 500 patients on LifePak: $90,000/yr. 1,000 patients on LifePak: $180,000/yr. Cost of Scanner 6 Month Trial Period $500 Down payment $299/month lease payment Cash intake: $100 with 15 new ADRs $150 Acquisition Bonus $108 Override from Pharmanex $358 - $299 = $59 profit Month 1 Not including scanning income! Cost of Scanner After Trial Period $249 per month for 24 months All Bonuses still apply Can more than pay for itself with just 20 customers on LifePak, or scanning about 1 person per day! *$500 buyout clause to cancel anytime RESIDUAL INCOME Continues even after you’ve stopped practicing If Patient Stops coming in, or moves out of the area – they still continue on their supplementation regimen. Implementation Sequence 1. Set Initial Scan Event Day Complete Customizable Promotional Package Already in place Implementation Sequence 2. Order Products and Scan Certificates $300 Personal Use Product Package Contains LifePak 2-month supply, G3, TeGreen, Marine Omega, and more. $1,000 Initial Event Order Contains 100 Scan Certificates (Charging $20 per scan, receive $2,000) Also contains app. $700 in product Access to Private Training Website 3 CD Training Approx. $3,200 value Implementation Sequence 3. Complete Staff Training 4 Different Medium: 1. HCP Training Website 2. Training Manual 3. Training CDs 4. Hands On Implementation Sequence 4. Ongoing Success! Continued Support Implementation Experts Product Experts Scanner Referral Program HCP Referral Program Assuming 200 patient per scanner 1 Scanner = $600 per month 5 Scanners = $3,000 per month 10 Scanners = $6,000 per month 100 Scanners = $60,000 per month Need More Information? Investigate from the inside! Try the entire program for a YEAR If you’re not thoroughly impressed, 90% MONEY BACK on all unopened product FOR AN ENTIRE YEAR!!! Solid Investment When was the last time you had the opportunity to invest in anything where your risk was only 10%? Think of this as a $1,000,000 franchise opportunity.... That you can start for only $1,300! The Perfect Scenario 1) Complete Scientific Validation 2) Legal Monopoly to Antioxidant Scanning 3) Very little staff/doctor time required. 4) Benefits to patients, to staff, to YOU! 5) YOUR chance to create LEVERAGE THIS WON’T HAPPEN AGAIN. Don’t miss your chance to get positioned... Get started TODAY!