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on
Thursday June 7th,
HealthSport Engages Medco to Distribute Product
with the Potential to Alter Athletic Performance
Levels in Virtually Every Sports Discipline
where Fatigue and Hydration are a Win or Lose
Factor
Every Investor should be looking at HealthSport
Inc. (OTCBB: HSPO) this morning!
Not only
has Beacon Equity Research rated them a
"Speculative Buy", with a
of $4.00,
but the company also issued a press release
yesterday that should get plenty of attention.
Yesterday, the company, a fully integrated
developer, manufacturer and marketer of unique
 and proprietary branded and private label edible
film strip nutritional supplements and
over-the-counter drugs issued a press release
announcing that its wholly owned subsidiary, Enlyten, Inc., has signed a distribution
agreement with the Medco Supply Company to
distribute its new edible thin-film strip
products.
Why is this so important? Medco is one of the
world's largest suppliers of medical products to
athletic trainers, sports medicine
professionals, physical therapists and schools.
Under the terms of the agreement, Medco will
market Enlyten, Inc.'s edible film strip
nutritional supplements, including its new
Enlyten SportStrips electrolyte thin-film
strip products, to professional, collegiate
and high school sports teams, sports medicine
clinics, athletic trainers, and sports medicine
professionals. Medco will develop markets
for Enlyten, Inc.'s products through advertising
and demonstrations throughout the United States.
Enlyten, Inc.'s products will be listed in the
August Medco Sports Medicine catalog and are
currently displayed at its
online homepage. Medco will also promote
other HealthSport products developed at selected
regional and national trade shows. |
RECENT NEWS!
06/07/07
HealthSport Engages Medco to Distribute
Enlyten Products
06/05/07
HealthSport Inc. Rated 'Speculative Buy,' Price
of $4.00 by Beacon Equity Research
05/30/07
HealthSport Announces Dr. C.T. Moorman as Sports
Advisory Council Chairman
05/23/07
AC Milan Refuels With Enlyten SportStrips
05/22/07
Shazamstocks Announces Profile Launch of
HealthSport, Inc.
05/21/07
JP Losman Scores a Touchdown With Enlyten SportStrips
05/18/07
HealthSport Closes $6 M Fixed Price Private
Placement
05/10/07
HEALTHSPORT, INC. Files SEC form 8-K, Completion
of Acquisition or Disposition of Assets,
Financial Statements and Ex
05/07/07
HealthSport Completes $40M Acquisition of
InnoZen |
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Investors should be watching this
company VERY closely! "Rarely does a product emerge with the potential to
truly alter training and preparation methodologies as well as athletic
performance levels in virtually every sports discipline where fatigue and
hydration are a win or lose factor. Medco is very excited about the potential of
the Enlyten SportStrips technology to have an extraordinary impact on nearly
every aspect of sports in such a positive way. We look forward to a very
productive year," stated Don Laux, Medco's Director of Marketing.
Enlyten SportStrips exploit the extraordinary delivery capabilities of buccal
absorption; a term that simply means delivering active ingredients and compounds
into the bloodstream by way of the soft tissue between the cheek and gums. Known
scientifically to be an extremely fast and efficient way to deliver drug actives
into the bloodstream, buccal absorption of electrolytes bypasses the inherent
drawbacks of gastric absorption, an Achilles heel for many athletes who struggle
with fatigue, cramping and hydration problems.
"Medco's reputation as a leading distributor of sports training equipment and
supplies made them the obvious choice as Enlyten's first distributor. We
believe our Enlyten SportStrips should be considered as a scientific
 by athletic teams, trainers and individual athletes of all sports.
Medco's expertise and wherewithal can educate athletes and fitness
professionals alike about the extraordinary benefits of Enlyten SportStrips and
the effect on athletic training and performance," said Gary Thomas, Vice
President of Sales of Enlyten, Inc. |
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HealthSport is a fully integrated developer,
manufacturer and marketer of unique and
proprietary branded and private label edible
film strip nutritional supplements and
over-the-counter drugs.
The Company's wholly owned subsidiary,
InnoZen, is the preeminent formulator,
developer and manufacturer of edible film strips
that deliver drug actives through buccal
(between the cheek and gum) absorption.
InnoZen's proprietary edible film strip delivery
technology is superior to any other competitive
edible film strips currently on the market.
InnoZen has five patents pending and has
developed numerous trade secrets which it
incorporates in the development and
manufacturing process of edible film strips.
The
company's
Enlyten
SportStrips,
an edible film electrolyte strip, has recently
undergone and completed pre-market testing
conducted in conjunction with physicians and
scientists at Duke University Sports Medicine &
The Michael J. Krzyzewski Human Performance
Laboratory ("K
Lab'').
Preliminary findings of these tests suggest that
the Enlyten electrolyte strip delivers
meaningful amounts of electrolytes to the body
in a safe, fast and effective manner. |
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HealthSports, Inc. is currently focused on the
energy replenishment market and targets athletes
as its audience. The companies listed below as
its peer group also market energy replenishment
products.
The
peer group companies were recently trading at
Price/Sales multiples ranging from a low of 0.6
times revenues
for Cott Corp to a high of 4.1 times revenues
for Hansen Natural Corp. The peer group average
Price/Sales multiple is approximately 2.5 times
revenues. At a recent $2.20 share price and with
approximately 24
shares outstanding, HealthSport has a current market capitalization
of approximately $53
. At that valuation
level, the Companys shares trade at about 3.6
times projected 2008 revenues but only 1.3 times
projected 2009 revenues. Given the rapid growth
expected for HealthSport over the next three to
five years, with sales expected to double
between 2008 and 2009, we think a valuation
above peer group levels is warranted. As a
result, we are initiating coverage of
HealthSport with a Speculative Buy rating and a
$4.00 price target, based on a Price/Sales
multiple of 2.5 times projected 2009 revenues.
We anticipate significant share price gains for
HealthSport if the Company is successful in
negotiating a distribution agreement for its
products with a major mass marketer or drug
store chain.
Read Full Report |
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Demand for easy-to-swallow formulations fuels
market growth
The Companys R&D department has already
designed and developed several additional
products using its proprietary edible film strip
technology, including products to treat allergy,
diarrhea, pain and
 .
Edible film strips as a delivery system are more
portable than drinks and tablets, easier to
administer and more cost effective than
traditional nutritional solutions. Market
acceptance of these products is increasing and
creating favorable growth opportunities for HealthSport.
Large Market For Health
Based Products
The market for healthy and nutritional food is
growing globally. This market consists of
beverages, dairy-based products, bakery
 goods
and snacks. Exhibit 1 provides a global overview
by category.
The
growth prospects for the edible
strips market, which is in a nascent stage of
development, are similar to those
of the health drink market since they target the
same groups of consumers. IRI reports
that energy drinks are the fastest growing
segment of the healthy beverage industry, with
sales increasing 56% in five years. Rapid sales
growth for energy drinks suggests a
strong
potential market for edible strips as well.
Strong portfolio of
innovative products
HealthSport recently acquired InnoZen Inc. for
$40
and plans to develop new edible film
products and delivery systems for nutritional
supplements and over-the-counter drugs. The
Company also recently acquired Cooley Nutraceuticals, Inc. which owns a formula that
provides relief from hangover symptoms. These
acquisitions
extend the Companys capabilities, product
offerings and revenue opportunities.
Effective marketing strategy
Duke Universitys K-Lab
Buffalo Bills
AC Milan Youth Sports Camps
Jim Kelly Hall of Fame Quarterback
Brandi Chastain - U.S. womens World Cup and
Olympic soccer champion
Jason Taylor - Miami Dolphins Defensive End and
NFL Defensive Player of the Year
JP Losman Buffalo Bills Quarterback
Ryan Miller Buffalo Sabres Goalie and NHL All
Star
Peter Gilmore - #1 Ranked U.S. Marathoner
Bruce Bochy Manager of the San Francisco
Giants
Acquisition strategy enhances growth
The Company is aggressively promoting its
existing products while continuing to develop
new products. Enlyten,
Inc., HealthSports marketing and distribution
division, has a multi-year deal with the Buffalo
Bills NFL football franchise to integrate
Enlyten SportStrips into their players training
program. Enlyten has recently partnered with a
marketing and distribution company called Medco
to distribute its SportStrips to over 9,000
sports teams and related outlets, including high
schools, colleges, universities and professional
sports teams. The Company has already received
significant interest from numerous athletes,
coaches, sports teams, trainers and sports
medicine physicians, including the following
list of endorsers and sponsors:
Experienced
Management
HealthSport is led by an experienced management
team. Daniel Kelly, the Companys President, has
more than 20 years experience in marketing,
promotions, and celebrity endorsements and, in
former roles, has negotiated marketing deals
with Fortune 500 companies such as Motorola,
Coors, KFC, Nike and Disney, among others. In
addition, Rob Davidson, HealthSports Chairman
of the Board, co-invented and launched Zicam
Cold Remedy, which was a hugely successful
product launch. Less than $6
was spent
in developing, launching and marketing the first Zicam product in the first two years before it
was sold. Zicam was sold in 2001, two years after
its launch, and was valued at $42
. Eight
years after its launch, the Zicam brand is worth
over $200
, with net sales in 2006
exceeding $96
.
Edible Film Strip Market Has Significant Growth
Potential
The growth prospects for the edible strips
market, which is in a nascent stage of
development, are similar to those of the health
drink market since they target the same groups
of consumers. IRI reports that energy drinks are
the fastest growing segment of the healthy
beverage industry, with sales increasing 56% in
five years. Rapid sales growth for energy drinks
suggests a strong potential market for edible
strips as well.
Unique features of edible strips
Easy to swallow
Rapidly absorbed by the body
More portable than drinks and tablets
More cost-effective than traditional solutions
Less calories than sports/energy drinks (Enlytens
products contain no sugar and are calorie free)
Because of these benefits, edible film strips
offer an alternative to lozenges,
gums, pills and fluids.
Consumer acceptance of edible filmstrips has
steadily increased since the 2001 introduction
of Pfizers Listerine PocketPaks. This novel
delivery system holds special appeal for several
consumer groups, including:
Large consumer market
for film strips
People having difficulty swallowing tablets
Sick children and the elderly
Consumers interested in exploring the latest
product trends. |
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