Afexa Life Sciences Inc.

Afexa Life Sciences Inc.

March 26, 2008 18:59 ET

CV Technologies Is Set for Growth, Says CEO

EDMONTON, ALBERTA--(Marketwire - March 26, 2008) - CV Technologies Inc. (TSX:CVQ) - CV Technologies' recent financial and operational performance sets the stage for successful long-term growth through product line and geographic diversification, said President, CEO and Chief Scientific Officer Dr. Jacqueline Shan, speaking today to the Company's Annual General Meeting of shareholders at the Alberta Research Council in Edmonton.

"Our road map is predicated on our belief that CV Technologies will continue as a leader in our product category in Canada, and that we will extend the COLD-fX® line and introduce other new products," Dr. Shan said. She observed that "Canada will remain our engine, serving as a showcase for our products and generating the financial and other resources that we expect will ultimately permit us to thrive in the global market".

The Company broadened its product line with the fall 2007 launch of COLD-fX Extra Strength - ranked by ACNielsen as the leading new product in Canada this season in the cold and flu category. Recently product line sales have increased strongly, driven by COLD-fX Extra Strength, as well as marketing and public relations efforts, including the first national television campaign, Dr. Shan said.

CV Technologies has filed a Natural Product Number application with Health Canada for COLD-fX Extra Strength. "We plan to move to the next stage of our plan to develop a children's formulation with a clinical trial to assess product efficacy. We are researching the application of our proprietary products and technology for a number of serious and common medical conditions, including metabolic syndrome, high cholesterol and blood pressure management," commented Dr. Shan. CV Technologies' competitive advantage in the natural products industry is based on uniquely rigorous scientific methodology, she said. Current research and development includes:

- The analysis phase of a clinical trial at New Jersey's Hackensack University Medical Centre, assessing the safety and immune enhancing effects of a three-day high dose of COLD-fX on front-line medical workers, with results expected in the quarter ending September 30, 2008; and

- The analysis phase of a Canadian trial examining the impact of a two-fold higher dose of COLD-fX on upper respiratory infections in vaccinated seniors, with results expected in the quarter ending September 30, 2008.

Studies on COLD-fX will be presented at the 5th Annual Natural Health Product Research Society scientific meeting now on in Toronto. These early pre-clinical studies open up the prospect of designing clinical trials to test the ability of CVT-E002, the active ingredient in COLD-fX, to treat disease conditions such as cancer, asthma and allergies. They also indicate the potential of CVT-E002 to boost the effectiveness of the flu shot and other vaccines.

The Company's near-term efforts will include increasing the sales of its two non-seasonal brands - REMEMBER-fX, which enhances mental alertness, and CELL-fX, which helps relieve symptoms of bone and joint pain, and is beneficial in forming connective tissue.

Management is confident that certain key challenges created by a difficult U.S. market entry have been effectively addressed through cost cutting, a refocus on the core Canadian business and restructured marketing activities. "CV Technologies' objectives include efforts to return our business to double digit sales growth as quickly as possible," Dr. Shan said. The fiscal 2008 first quarter ended December 31, 2007 was one of the most profitable in the Company's history; a strong balance sheet and cash flow provide a solid financial foundation going forward, Dr. Shan added.

"Our initial investment of money and time in establishing U.S. relationships continues to demonstrate benefits. We have maintained favorable profiles with respected U.S. opinion leaders in the scientific, regulatory, medical and journalistic communities. And we are confident their goodwill will translate into support for future efforts, when the time is right," she said.

"Recently, the U.S. Food and Drug Administration approved the first botanical drug product. We are exploring the possibility of obtaining U.S. botanical drug registration for COLD-fX, which would allow us to make therapeutic claims," Dr. Shan remarked. "In addition, we are in early stage discussions with potential strategic partners about the prospects for developing new products and extensions to our existing lines for global distribution. We are also exploring licensing our intellectual property for use in industries like functional foods and animal supplements."

According to Dr. Shan, there is a competitive advantage in the Company's commitment to scientifically developed and rigorously produced natural remedies, safe for the human body and devoid of synthetic chemicals that degrade the environment. "This makes our products an environmentally responsible choice for consumers and our Company an attractive business partner for global leaders. For CV Technologies, these companies can represent relatively low-risk, high reward opportunities for growth."

At the AGM today, shareholders endorsed the current Board of Directors and supported the re-appointment of Ernst & Young LLP as the Company's auditors.


CV Technologies, founded in 1992, is a global leader in the development and commercialization of naturally derived, evidence based, natural therapeutics for disease prevention and health maintenance. The Company's lead product - COLD-fX® - strengthens the immune system and is widely used as a leading over the counter remedy (OTC) for preventing and relieving cold and flu infections. In the United States it is marketed as an immune enhancing dietary supplement. COLD-fX continues to rank as the number one selling cold and flu remedy in Canada (ACNielsen's MarketTrack Drug Service for Cold Remedies, Natural Supplements & Vitamins Categories for the 52-week period ending December 22, 2007). COLD-fX®, with its unique and patented mechanism of action was standardized according to the Company's ChemBioPrint (CBP) Process. The CBP process precisely identifies the chemical profile and biological activity of multi-active compounds in evidence-based natural therapeutics. The CBP process also provides a manufacturing protocol that ensures each batch of the final product delivers verifiable and provable health benefits.

Forward Looking Information

This news release contains forward-looking information that is subject to risks and uncertainties that may cause actual results or events to differ materially from the results or events predicted in this news release, including those comments predicting profitability and revenue growth and the timing and/or initiation of clinical trials, clinical trial results and associated regulatory clearances, new areas of potential development for our platform technology and whether or not those areas will be pursued and whether or not potential collaborations will lead to new areas of product development. Factors which could cause actual results or events to differ include, but are not limited to: the impact of competition; consumer confidence and spending levels; general economic conditions; interest and currency exchange rates; unseasonable weather patterns; the cost and availability of capital; the cost and availability of grants/funding; product development and the risk that clinical trials may not demonstrate the safety and efficacy required to satisfy the regulatory authorities. Although we believe that the forward-looking information contained herein is reasonable, we can give no assurance that our expectations are correct and that the results, performance or achievements expressed in, or implied by, forward-looking information within this disclosure will occur, or if they do, that any benefits may be derived from them. All forward-looking information is expressly qualified in its entirety by this cautionary statement. The Company assumes no duty to update or revise forward looking information, except as may be required pursuant to applicable laws. The Company is a 12g3-2(b) SEC registrant.

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