Jade Pharmaceutical also offers ADL a platform to in-license North American drugs for manufacture and sale in China and Asia. Jade Pharmaceutical's national sales network encompasses all of China and includes Jade Pharmaceutical's in-house sales force of 75 sales representatives and a number of distribution partners nationwide. The current focus is on 36 key Chinese markets, but over the next year, Jade Pharmaceutical plans to expand its sales network by adding 100 – 150 new sales professionals who will be selling an expanded line of products. Within the next four years, Jade Pharmaceutical will have a significant presence in all 168 cities in China that have a population of more than one million people.
ADL reported net revenues of $3,837.680 for the 6 months ended June 30, 2007. For the 2nd Quarter 2007 were $2,413,501. This is an approximate increase of 69% over the 1st quarter of 2007. The Company had gross profits for the 6-month period of of $1,878,321 and incurred an operating loss of ($3,375,351). Included in the operating loss were non-cash expenses of approximately $2,951,108 for depreciation, common stock, warrants and options issued and a loss on equipment sold of $2,300.
The cash lost from operations for the 6 months ending June 30, 2007 was ($421,943) vs. ($1,032,205) for the same period 2006. With adjustments for Other Income, Taxes, and Foreign Currency Translation Gains, the Comprehensive cash loss for the 6-month period in 2007 was ($350,790) vs ($1,017,505) for 2006. ADL is improving operationally.
DR-70®
The DR-70® ELISA Kit for Cancer: DR-70® is ADL's proprietary diagnostic test kit for monitoring and detecting cancer. Studies have shown that the DR-70® can be used to assist in the detection of at least 14 different types of cancer, including: lung (small and non-small cell); stomach; breast; rectal; colon and liver. As DR-70® is a non-invasive blood test; there are no side effects and it has been shown to be useful in monitoring cancer patients after cancer treatment in order to detect a recurrence of their cancer. DR-70® is not yet cleared for sale in the United States.
On September 13, 2006, AMDL retained the statistical and regulatory consulting firm R. P. Chiacchierini & Associates, LLC, Rockville, Maryland,
(www.rpcaconsulting.com) to provide additional statistical analysis for the U.S. Food and Drug Administration (FDA) to support the Company's request for clearance to market its DR-70® kit in the U.S. Chiacchierini & Associates has assisted more than 700 firms with their filings, employs former FDA senior management, policy makers, reviewers and other industry personnel. Dr.
Chiacchierini, President and CEO, served in various management positions with the FDA and is co-author of a number of agency guidance documents. He served as Chief Scientific Officer in the U.S. Public Health Service under Surgeon General C. Everett Koop.
In our opinion, the revenue potential for DR-70® is so tremendous, any favorable opinion from the FDA could send ADL shares to multiples of their current
price.
Combined Immunogene Therapy
ADL's Combination Immunogene Therapy (CIT) technology has been shown to be effective in reprogramming a cancer patient’s immune system to attack and kill cancer cells. CIT technology could eventually lead to a vaccine to protect patients known to be at risk due to a family history for certain types of cancer. The combination therapy is intended to both activate T-cells within the body’s immune system and enable them to destroy cancer cells. ADL has met with two potential partners: IPIX and the Academy of Military and Medical Sciences in order to establish a strategic alliance with government and businesses in China. ADL's operating strategy is focused on locating a pharmaceutical or biotechnology strategic partner to license its CIT technology, or form a joint venture with.
CIT technology for cancer treatment has successfully completed phase I clinical trials in Canada and is now ready for phase II trials. ADL recently funded a study at the University of Florida to target breast cancer, with a goal of ultimately developing a vaccine using the CIT technology. ADL believes the CIT technology may potentially fight several types of cancer by targeting one’s immune system and increasing the number of cells that naturally destroy cancer.
A Historic Time to Invest in China
China’s wealth and economic power are on the rise with an economy growing at a rate of 10% per year and many of its 1.3 billion people migrating from farms to factories. Couple this economic clout with the attention from the rest of the world as a result of the 2008 Beijing Olympics and it adds up to stock market profits. Many investors are interested in profiting from this historic period of growth for China, but end up scratching their head in dismay for a variety of reasons.
The major banks and infrastructure have been covered by U.S. investment opinion for years. In fact, Chinese companies made many U.S. investors millionaires over the last 3 years". A $10,000.00 investment in Best NetEase.com (NTES) was worth $563,580.00 in the three year period between 2001 and 2004. China Yuchai International (CYD) posted a 157.62% average annual return between 2001 and 2004.
China is known to the rest of the world as a manufacturing powerhouse. But it is also a fast-growing market for retailers. According to a Business Week report, the nation's overall retail business has risen 15% annually for the past 20 years, making it the third largest retail market in the world.
ADML, Inc. (AMEX:
ADL) could be one of the purest plays on an expanding Chinese economy.
