EDITOR: | October 3rd, 2014

EastGate holds the ‘software’ needed by the growing nutraceutical and functional foods industry

| October 03, 2014 | No Comments

nutraceuticalsOn September 29, EastGate Acquisitions Corporation (OTCBB: ESAQ), with offices in Salt Lake City (UT) and Toronto (ON) announced that it has signed a licensing agreement with New Jersey based Purine Pharma, LLC (‘Purine’) to produce and distribute EastGate’s line of nutraceuticals under its own private label. Purine will use its established market position to promote the products internationally. Purine supplies a line of over 200 cold, allergy, analgesic, topical and vitamin and supplement products -over-the-counter and prescription based. EastGate is also engaged in studying drug delivery innovations and alternative dosage forms of existing biologically active molecules. Its current focus is on diabetes and non-invasive insulin delivery systems. EastGate recently announced that it has advanced its ‘self-emulsifying sub-micron platform’ technology to expand delivery options of its own line of pharmaceuticals. This includes other biologically active compounds, including those that address indications in diabetes, obesity and the overall metabolic syndrome in a variety of dosage forms from liquid spray to compressed tablets and capsules, such as to offer patients a variety of treatment possibilities and higher compliance rates.

In simpler terms, EastGate studies ways to make it possible to extract and deliver the essential ingredients contained in a variety of substances occurring in nature. In order to this the substances, or active ingredients, must be soluble. Many of these are not soluble at the raw state; they neither stabilize in water or in alcohol. EastGate has developed and acquired technologies and techniques to make it possible for the human body to absorb them in what is a unique platform that makes natural substances available to the body in just the right amount needed for therapeutic use. The development of a ‘platform’ implies that it serves as a veritable basic system through which to adapt a lot of substances, natural, medicinal and synthetic for human absorption, making the molecules ‘acceptable’ to the body and use as commercial drugs. Insulin is one of the most difficult because it is a protein and, therefore, composed of large molecules.

EastGate is close to acquiring the licensing rights to develop and manufacture an intraoral insulin formulation, which would grant EastGate the exclusive ability to deliver insulin without a needle. Moreover, any pharmaceutical or nutraceutical company wanting to use or adapt this technology would have to license it from EastGate, which has acquired and modified patented technologies for this purpose. EastGate’s role, therefore, can be compared the role of Microsoft’s ‘Windows’ platform: it can be licensed by many computer hardware manufacturers and anytime a new computer is sold , a new Windows license agreement gets sold with it, without the need to for manufacturing or shipping or other profit reducing activities associated with the commercialization of a product.

Insulin is crucial for treating diabetes but the typical delivery system – needles (four or five times a day) – has made this disease more insidious than others, where the drug delivery method has shifted from needle to a less intrusive one. Patients want to get away from needles, prompting a quest for a more patient friendly way to deliver the insulin. Tablets are ideal, but until the insulin could be integrated into a tablet that dissolves into the bloodstream before reaching the GI tract where proteins are broken down, this is not possible. EastGate is working on the delivery technology, which can be used for insulin and for any other protein or non-protein based substance.  The tablet has been given a menthol taste, a rather small price to pay, considering the prickly alternative of the needle.

A nutraceutical (derived from the words “nutrition” and “pharmaceutical”) is a food or food product that provides health and medical benefits, including the prevention and treatment of a variety of illnesses. Health Canada defines a nutraceutical as a product isolated or purified from foods that is generally sold in medicinal forms not usually associated with food products. “A nutraceutical is said to have a physiological benefit or provide protection against chronic disease.” EastGate is well placed because its platform can be used by all types of nutraceuticals which range from isolated nutrients, dietary supplements, plant produced foods, processed foods like cereals, soups, and drinks. Moreover, the use of nutraceuticals is bound to increase as recent developments in the nutraceutical agents at the cellular level (that is the level where EastGate is working) are compelling researchers, and medical practitioners to integrate and evaluate information from clinical studies aimed at promoting complementary and alternative therapies in medical practice. Nutraceutical foods are not subject to the same testing and regulations as pharmaceutical drugs.

EastGate’s platform can be adapted to a number of foods with medicinal or nutraceutical value. These include such antioxidants as resveratrol from red grape products; flavonoids in citrus, tea, wine, and dark chocolate foods; anthocyanins found in berries. They can be dietary fibers to reduce cholesterol such as psyllium; cancer preventing vegetables like broccoli (containing sulforaphane) or improve arterial health through soy or clover (isoflavonoids), alpha-linolenic acid (from flax or Chia seeds). In addition, many botanical and plant extracts such as ginseng, garlic oil, have been developed as nutraceuticals. Some of the most popular nutraceutical foods include fortified milk, yogurt, oils, breads and high fiber baked goods – gluten free and organic. In the future, it is expected that the pre-biotic yogurt and pro-biotic drinks will experience above-average growth in Canada.

EastGate also benefits from many competitive advantages, because Canada has an excellent reputation as a supplier of high quality Functional Foods and Natural Health Products (FFNHP) of which nutraceuticals are an integral component. Indeed, the FFNHP is the segment of Canadian agriculture and agri-business, experiencing the most rapid growth with revenues of CAD$ 11.3 billion and exports of CAD$ 1.7 billion – a large share of the overall revenue generated by food products (CAD$ 92.8 billion dollars). This growth offers the agriculture and food industry the opportunity to develop new FFNHP for domestic and export markets. It is estimated that sales FFNHP in Canada rose by about 9% from 2012 to 2013, which suggests a large potential for growth. EastGate is occupying a rather interesting vantage point to take advantage of this growth.


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