Health Advance, Inc. (OTC Pink: HADV) is engaged in the sale and operation of a web-based medical products business. Shares of the health retailer are up 23% over the past two trading sessions; including today’s rally of 11.50% through early trading on Wednesday, November 2, 2016. Over the past three months, Health Advance, Inc. has seen average daily volume of 287,251 shares, over the past three months. However, the company is seeing volume of nearly 94,500 shares or dollar volume of $211,462, through early trading on Wednesday.
Shares of Health Advance, Inc. has been sustaining an impressive rally over the past two trading sessions, after the company announced it has entered into a letter of intent for the acquisitions of “proprietary product formulations” for generic drugs. The acquisition agreement is non-binding and is said to be involving a Canadian citizen, Patrick O’ Charchin. Health Advance, Inc. will now conduct due diligence on the formulations over the next 4-6 weeks. Here is the complete press release detailing of the acquisition:
Health Advance, Inc. Press Release:
LAS VEGAS, NV–(Marketwired – Oct 31, 2016) – Health Advance, Inc. (the “Company”) ( OTC PINK : HADV ) is pleased to announce it has entered into a non-binding Letter of Intent to acquire certain proprietary product formulations for the manufacturer of generic drugs from Patrick O’Charchin, a Canadian resident. The acquisition is subject to due diligence by Health Advance, and the negotiation and execution of a definitive agreement. The agreement will be subject to certain conditions including the Company issuing shares of the Company in exchange for the formulations held by Mr. O’Charchin. The Company will analyze the value of the formulations and expects the due diligence period to last approximately 4-6 weeks.
The Company believes the Letter of Intent is the next phase of its growth and development. Upon completion of the Hantian transaction, the Company will utilize the strategic relationships formed by Hantian to develop, market and promote the formulations that will provide Health Advance with the greatest opportunities.
The formulations are currently active in the following areas: (i) Central Nervous System Drugs such as anti-convulsants and anti-psychotics, (ii) Anti-Infection Drugs such as erythromycin opthalmic ointment, (iii) Topical Dermatology Drugs such as topical antibiotics, topical anti-fungals and anti-inflammatories, (iv) Hormonal Drugs such as steroidal drugs, and (v) Other Drugs such as ophthalmics.
Generic pharmaceuticals are bioequivalent (same ingredients) and therapeutic equivalent alternatives to brand name drugs that have lost the market exclusivity of patent protection. Generic drugs offer the same active chemical entity as trade name products, but differ inert substance formulations. Inert ingredients include binders, fillers, artificial colors, flavorings, etc. Since these substances may affect the bioavailability (performance) of the active ingredient, bioequivalence studies must be conducted by manufacturer’s and submitted to the federal Food and Drug Administration (FDA) before new generic products are approved for sale. This file will show that the generic drug has the same ingredients in the same proportions as the brand product (known as bioequivalence) and performs the same as the brand product when taken (known as bioavailability). Once this submission file is reviewed by FDA and bioequivalence and bioavailability are confirmed, an approval for sale is granted and the drug may be marketed. All of the product formulations held by Mr. O’Charchin have bioequivalence studies completed which will result in considerable time savings and cost savings.