CFN Media Exclusive Interview with NanoSphere Health Sciences President and COO Mr. David Sutton
March 8th, 2018
Exclusive, News, Top News
As research into cannabis has grown, the demand for new and innovative delivery methods has exploded. NanoSphere Health Sciences (NSHS.CN) (CSE:NSHS) (CNSX: NSHS) is disrupting the space through its innovative delivery systems, which include transdermal, intraoral, and intranasal applications. The Evolve NanoSerum won the 2017 Dope Cup Award for Best Transdermal and the company recently signed an agreement to license their cannabis technology to the state of California.
CFN sat down with NanoSphere Health Sciences COO David Sutton at the recent Seed to Sale show in Denver Colorado.
CFN Media recently spoke with NanoSphere President and COO David Sutton and Adviser Doug Symons to learn about the company’s groundbreaking technology and their plans for expansive growth through their patent-pending Evolve delivery systems.
CFN Media: How was NanoSphere Health Sciences conceived?
David Sutton: NanoSphere was started about five years ago with an introduction to Dr. Kaufman, now NanoSphere’s Chief Science Officer, and his prototype nutraceutical of a nano-encapsulated Resveratrol, a beneficial ingredient found in grapes and wine, which we found to be pretty interesting. We began doing a lot of R&D about nano-encapsulation, which increases the bioavailability of materials that are traditionally tough to break down and get into your circulatory system.
We break apart these molecules that tend to stick together, wrap them in an all-natural carrier system, and then we introduce them to the body via three different routes: transdermal, intraoral (between the cheeks and gums), and intranasal. Internasal and intraoral are both mucosal linings, and our encapsulation material allows for quick transport across those mucosal linings into your circulatory system. This helps to avoid a lot of the destructive factors that occur in your GI tract.
We started with nutraceuticals and about two years ago, we started looking at the cannabis industry. When we started conducting our R&D within the cannabis industry, we noticed some significant benefits that our tech had. Our product addressed a lot of the big problems that we saw in the market – lack of standardized dosing, low bioavailability of ingested cannabinoids, and a delay in onset of actions causing a stacking effect.
We provide precise dosage through our enhanced delivery mechanism. We’ve conducted our pharmacokinetic blood studies. We know exactly what is being delivered into your circulatory system. We’re one of the few companies to conduct human blood studies on our technology and backup what we have to say about increased bioavailability. We are very, very proud of that. In fact, the data showed that we can introduce THC into the circulatory system within ten minutes.
CFN: What is bioavailability and how does the science related to cannabis?
David Sutton: Bioavailability is basically how much active ingredients make it into systemic circulation so that they can be utilized by your body. THC is a sticky big molecule which tends to bind together. So we break those particles apart from each other and then encapsulate them with our all-natural carrier system. In fact, it surrounds all the cells in your body, so it’s highly biocompatible. This wrapping of the carrier system prevents the THC from recombining with itself and creating a molecule that won’t pass through your skin. So now we have a bunch of these tiny encapsulated THC molecules readily passing through the multiple layers of your dermis and reaching systemic circulation or target points of pain.
CFN: Tell us about your first product line, Evolve?
David Sutton: Our first product is our NanoSerum to treat pain and anxiety with multiple formulations. We’re coming out with a pure CBD line as well for those use it day-to-day for overall wellness. The serum is a 250 microliter dose of 10 milligrams of THC, 2 milligrams of THC-A, and 2 milligrams of CBD plus a proprietary blend of terpenes and other beneficial ingredients, such as Vitamin E. We find that this formulation, in combination with our technology, is most effective for relieving pain, as well as providing an uplifted feeling to reduce anxiety.
This summer we’re going to come out with an intranasal product, which is really going to change the market. Initial testing is showing onset of actions within eighty seconds and effects lasting four to five hours and will be available in multiple dosage amounts so that it can be used medicinally as well as recreationally. It’s discreet, it’s consistent, it’s fast, and it’s reliable.
CFN: What is your licensing model?
David Sutton: We’re offering a JV licensing model where we lease the equipment and give access to the information on how to produce our products as well as license the brand Evolve itself. We go in, we provide all the equipment, we do all the training, and we provide all the cost of goods necessary to get you up and running.
From there, as revenues are generated, costs are allocated. After that, it is a split of 75/25 percent. 75 percent of the net profit going to us and 25 going to our licensing. This is a good deal because their not putting up any of the risk capital. We come in with everything besides the extracted cannabinoids, and it’s all covered by Evolve and NanoSphere Health Sciences.
CFN: Why should potential investors consider NanoSphere Health Sciences?
Doug Symons: We recently completed a reverse merger into a Canadian public shell, and NanoSphere is now public and on the Canadian Securities Exchange. We did that partially because of the market up there being much more receptive to it. Secondarily we also have an agreement ready to be put in place with a Canadian producer, which will make our product available across Canada. We are also trading on the OTC, enabling some people in the US to be able to access the stock, and be participants as an investor.
The goal of the company is to build up our licensing of our product with producers in different legal jurisdictions. We generate our revenue based off of them selling a product that’s made with our technology. We don’t actually grow or harvest cannabis; we simply help convert the oil into a product that is much more acceptable in the marketplace than what’s currently out there, certainly from a physician’s perspective, because of the way it’s delivered and the medical aspects of it.
David Sutton: We’re just breaking into the industry, so the opportunity for growth is quite large. You can trust in us because we actually back up what we’re saying with scientific, clinically proven data. Our NanoSphere team is made up of experienced business people that know how to market, drive companies, and build brands. So not only do we have the science down, but we also have the business side down. I think that’s a real reason that investors can trust with us. Plus, the value of the IP alone is of significant worth.
CFN: What are your projections and goals for growth?
Doug Symons: Simply put, we’re not just a cannabis company. Our technology is useful in the supplements and vitamin industry because it bypasses putting those through your digestive system; instead of getting 10 or 15% bioactivity, you’re getting 80%. We also have patents that are pending on NSAIDs, which will be revolutionary in the delivery of anti-inflammatories. The key is if you don’t go through the digestive system, you don’t have the stomach issues, you don’t have liver issues, et cetera. In addition, we have also products that we have planned for the animal industry.
David Sutton: Over the next couple of years, we want to be in at least 50% of the markets in the United States as well as being completely operational in Canada and potentially another international locations. We’re always going to increase our product lines, creating different formulas to elicit different effects. But where I really see this going, is once the cannabis division has really established itself, we’re going to begin focusing on our other divisions. Our patent on the NSAIDs technology is an enormous opportunity, almost beyond what cannabis is, for pharmaceutical applications and increased bioavailability of them. I see us conducting more R&D on the NSAIDs, hopefully entering into a license agreement with a big pharma company, or even spinning that division completely off. From there, we’ve got our nutraceuticals we’ll begin to do again as well as animal health products.
The opportunities for increased delivery and increased efficacy are almost boundless. This is an exciting time to be a part of NanoSphere, whether as a licensee, an investor, or a consumer. We’re going on a journey here and I think anyone that comes with us for the ride is going to be happy they did.
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