MYOS RENS Technology CEO Joseph Mannello Issues Letter to Shareholders Summarizing Milestone Achievements and Ongoing Growth Strategy
CEDAR KNOLLS, N.J., Nov. 14, 2019 /PRNewswire/ -- MYOS RENS Technology Inc. ("MYOS" or "the Company") (NASDAQ: MYOS), an advanced nutrition company and the owner of Fortetropin®, a proprietary bioactive composition made from fertilized egg yolk that helps build lean muscle, issued a letter to its shareholders from Chief Executive Officer Joseph Mannello.
Dear Fellow Shareholders,
As I look back on the past two years as CEO of MYOS, it is remarkable how much the Company has accomplished, not only in terms of our clinical research successes but also in the momentum we have built in our core brands. I'm very pleased with where we are today. The process of launching brands and having them rapidly accepted in the marketplace is challenging and can be an expensive proposition. In a little over a year's time, we've made the investments in time, manpower and capital to launch two Fortetropin-based brands– Myos Canine Muscle Formula® ("Myos Canine"), and Yolked®– that are proven by our clinical research data to increase lean muscle and reduce muscle atrophy. These launches combined with subsequent marketing efforts led to an increase in net revenues of 430% in the third quarter of 2019, compared to the third quarter of 2018.
MYOS CANINE MUSCLE FORMULA
Since the launch of Myos Canine in June of 2018, we have seen double-digit growth in sales of our products, which continued in the third quarter of 2019, a 48% increase from the second quarter of 2019. While I'm pleased that Myos Canine continues to grow at a rapid pace, I'm more excited about its potential. Remember, the global veterinary supplement market is massive and is expected to reach over $8 billion by 2023 with a compound annual growth rate of over 6%, according to industry reports. We're finding that when we acquire new customers, they love the product, they see the difference over time in their dog's activity, movement, and muscle strength and they become repeat customers. There is nothing in the marketplace like Myos Canine. I invite you to look at the customer testimonials we've received on our Amazon page, as well as our social media channels. All these channels have proven to be major catalysts for sales of our Myos Canine brand and I look forward to what I anticipate being our biggest marketing push as we approach the holiday season.
Myos Canine is effective in improving mobility and quality of life for dogs and our customers are enthusiastically sharing this fact. It works so well that people continually write compelling reviews and testimonials. They are truly our best sales force in the direct-to-consumer ("DTC") space and it shows in the numbers, therefore, we are devoting more marketing dollars to Myos Canine in order to capitalize on this positive market pressure on a broader scale.
We've also received great feedback from veterinary practices that supply Myos Canine to their customers. Guided by those insights, we created Veterinarian Strength Myos Canine Muscle Formula with branched chain amino acids ("BCAAs"), a more specialized product that is available exclusively through veterinary practices, as opposed to Amazon or other e-commerce options. This formula combines Fortetropin with the BCAAs leucine, isoleucine and valine, further boosting the beneficial effects of muscle protein synthesis and resulting in greater improvement of muscle health in canines. Providing this additional line extension comes at a minimal cost to MYOS, while providing us further entry into the commercial veterinary market. In 2018, there were over 113,000 veterinarians and more than 30 accredited veterinary schools in the United States. In addition, there are over 48 million households owning dogs and averaging 2.4 veterinary visits per household per year according to the American Veterinary Medical Association– so our market potential is huge.
NEW YORK VET SHOW 2019
Last week, Myos Canine was exhibited at the New York Vet Show at the Javits Center, where I delivered remarks at the Innovation Showcase on Myos Canine and the impact of Fortetropin on dogs recovering from TPLO surgery and our new Veterinarian Strength Myos Canine Muscle Formula. At our booth, we had a great turnout of veterinarians and other key industry people, with the biggest draw being our successful clinical studies, as well as presenting one of the only products that effectively supports and enhances muscle health in dogs.
Turning to Yolked®, our all-natural, NSF Certified for Sport® nutrition product, we made progress in the third quarter with sales doubling from a year ago. This was largely a result of the marketing investments made in our DTC vertical, which includes Yolked.com, Amazon, and our social channels, along with our elite athlete focus, which includes over 8 university athletic departments. However, results in this vertical have been less than I expected given the amount of marketing dollars we put behind it. We have seen good responses to the products in the university athletic departments and believe this area along with professional athletic teams is a great market for Yolked. However, in the DTC space, we believe we need to capitalize on the powerful results from our University of California Berkeley study and aim for the 40+ age demographic.
With that in mind, we recently announced a marketing partnership with the Texas Golf Association, the largest statewide amateur golf association in the United States, with over 147,000 active members. Throughout the partnership, we will present instructional videos during the fall and winter months, introducing members to Yolked and demonstrating its benefits. The golf market is a very attractive market for Yolked with customers who are over forty-years of age, affluent, and well-educated. Golfers are always looking for an edge and Yolked gives them one.
CLINICAL STUDY SUCCESSES
As we continue to actively market our brands, we believe the foundation for the long-term success of our products will be driven by the powerful research results we have, to fully leverage Fortetropin's benefits. We were delighted to announce in June our positive top-line results from our randomized, double-blind, placebo-controlled study that was conducted at the University of California, Berkeley and the University of Arkansas for Medical Sciences where we evaluated the impact of Fortetropin on the rate of muscle protein synthesis in older men and women between 60-75 years of age. This study showed that Fortetropin significantly increased the rate of muscle protein synthesis, relative to a placebo, within 21 days. The Principal Investigator of the study, William J. Evans, Ph.D., Adjunct Professor of Human Nutrition, University of California, Berkeley and an expert in sarcopenia, commented, "Fortetropin clearly has a robust effect on the rate of muscle protein synthesis in older adults. It is rare for a nutrition product to show such a consistent and positive effect." This quote is a powerful testimonial on the effectiveness of our products.
We also launched a clinical study in September with the Department of Kinesiology at McMaster University in Hamilton, Canada. This study will examine the impact of Fortetropin on reducing muscle disuse atrophy in young men, which commonly occurs in response to immobilization, such as the atrophy of the thigh muscles following a period of casting for fracture or following surgery such as knee replacement. With this study we hope to show that Fortetropin can shorten recovery times and reduce atrophy of disuse. We believe success with this study will provide MYOS with a sizeable opportunity for our product in the field of rehab and recovery.
LONG TERM STOCK UPSIDE POTENTIAL
MYOS doesn't operate in a capital-raise shareholder-value-destructive manner and raises capital, prudently. Our at-the-market facility with HC Wainwright allows us to take advantage of price fluctuations, reducing our cost of capital compared with most capital raises in small-cap companies. In addition, members of the board and I have participated in various capital raises, free of toxic warrants and options, and we hope to maintain that discipline. I do not take a salary as my compensation is strictly in stock. Our interests are fully aligned with our shareholders because we believe MYOS is a great, long-term investment opportunity, and management should always have skin in the game.
We've attained steady growth in this Company as a result of building a scientific case for Fortetropin while developing vibrant brands and marketing programs to get our products into the marketplace. As results have shown, we've made a lot of progress in a relatively short period of time– we're only in the early stages of this process– and we expect greater results from here.
We are very pleased with the progress, enhancements, and improvements we have made in the Company over the last three quarters and our plans for growth going forward. I would like to sincerely thank all the MYOS shareholders and customers for their ongoing support. Our entire team greatly appreciates the confidence you have shown in our mission, products, and operations. We will keep you updated on our progress as developments unfold.
Chief Executive Officer
MYOS RENS Technology
About MYOS RENS Technology Inc.
MYOS RENS Technology Inc. (MYOS), "The Muscle Company®", is a Cedar Knolls, NJ-based advanced nutrition company that develops and markets products that improve muscle health and performance. MYOS is the owner of Fortetropin®, a fertilized egg yolk-based product manufactured via a proprietary process to retain and optimize its biological activity. Fortetropin has been clinically shown to increase muscle size, lean body mass and reduce muscle atrophy. MYOS believes Fortetropin has the potential to redefine existing standards of physical health and wellness. For more information, please visit www.myosrens.com.
About Myos Canine Muscle Formula®
Myos Canine Muscle Formula (Regular and Veterinarian Strength) is an advanced veterinary health supplement to support muscle health in dogs, featuring Fortetropin as the active ingredient. Fortetropin is made through a patented process that maintains the vital nutrients of fertilized egg yolks to help build more lean muscle and decrease muscle loss. For more information, please visit www.myospet.com.
Yolked is an NSF Certified for Sport® all-natural sports nutrition product designed to work in conjunction with your protein of choice to help your body utilize that protein more efficiently. Its key ingredient, Fortetropin, is made through a patented process that maintains the vital nutrients of fertilized egg yolks to help build more lean muscle and decrease muscle loss. For more information, please visit www.yolked.com.
Any statements in this release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements involve risks and uncertainties, including but not limited to those relating to product and customer demand, market acceptance of our products, the ability to create new products through research and development, the successful results of strategic initiatives, the success of our products, including Qurr®, Yolked®, MYOS Canine Muscle Formula®, and MYOS Enteral Nutrition Formula™, the success of our research and development, the results of the clinical evaluation of Fortetropin® and its effects, the ability to enter into new partnership opportunities and the success of our existing partnerships, the ability to generate revenue and cash flow from sales of our products, the ability to increase our revenue and gross profit margins, the ability to achieve a sustainable, profitable business, the effect of economic conditions, the ability to protect our intellectual property rights, competition from other providers and products, the continued listing of our securities on the Nasdaq Stock Market, risks in product development, our ability to raise capital to fund continuing operations, and other factors discussed from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made except as required by law.
Porter LeVay & Rose
Matthew Abenante, IRC, SVP
View original content to download multimedia:http://www.prnewswire.com/news-releases/myos-rens-technology-ceo-joseph-mannello-issues-letter-to-shareholders-summarizing-milestone-achievements-and-ongoing-growth-strategy-300958043.html
SOURCE MYOS RENS Technology
Released November 14, 2019