PURE Bioscience Completes Facility Expansion - SDC Production Capacity Increases 20 Fold
New Automated Packaging Operation Expected to Accelerate Near-Term Revenues
SAN DIEGO, CA MAY 1, 2007 – PURE Bioscience (OTCBB: PURE) today announced the completion of an important facility expansion. The key elements of the expansion include (1) significantly increased capacity for production and blending of PURE’s patented silver dihydrogen citrate (SDC) antimicrobial, (2) a new automated packaging operation and (3) establishment of a dedicated GMP suite for future production of SDC as an active pharmaceutical ingredient.
The expansion increases PURE’s production capacity for SDC concentrate from approximately $11 million per year to more than $250 million per year. PURE designed and implemented a new modular production system that can be phased up to maximum capacity within 30 days.
The project also included construction of a designated suite for production of SDC concentrate as an active pharmaceutical ingredient (API). PURE expects to receive GMP (good manufacturing practice) certification during the next calendar quarter.
In addition, PURE increased its capacity for blending SDC concentrate for use-dilution products and established a packaging operation to better facilitate distribution of its private label hard surface disinfectant products. PURE’s packaging facility can bottle an average of 50,000 bottles a day – from 2 ounce bottles to 1 gallon bottles.
Michael L. Krall, President and CEO of PURE Bioscience, commented, “Our expansion is consistent with our business growth strategy. First, it was necessary to increase production capacity of SDC concentrate because we are at a point where product demand from even one significant national or international customer could exceed our previous capacity.
“Second, by providing cost-effective and quick turn-around bottling and distribution services to established, regional janitorial and sanitation distribution companies, we believe we can increase near-term revenues. Bottling relatively short runs of a non-toxic product through traditional packagers can be cost prohibitive for smaller companies, and our packaging line eliminates a significant barrier to entry for those companies and helps create a larger market presence for SDC.
“Third, by the end of 2008, we expect five INDs to be filed for SDC-based pharmaceutical products. The first
Krall continued, “Looking back over the past two years, we have progressed from technology and product development through marketing and are at the point of beginning to generate material product sales. We are now working with dozens of companies to establish sales of ready-to-use SDC-based disinfectant and/or to integrate SDC into third party products. The facility expansion increases our revenue opportunities for ready-to-use hard surface disinfectant products while ensuring we can meet demand as we begin to generate more substantial orders from sales of SDC concentrate.”
The SDC product itself is safe and environmentally friendly. In addition, PURE operates a zero discharge production facility employing environmentally-conscious manufacturing processes. All ingredients and process components of SDC are used in manufacturing without creation of waste of byproducts.
SDC: A Disruptive Technology
Silver dihydrogen citrate (SDC), is an electrolytically generated source of stabilized ionic silver. In one of the mechanisms of action, the bacteria views the molecule as a food source, and once the organism consumes it, SDC destroys the bacteria by disabling proteins and halting its metabolic and reproductive functions. SDC is colorless, odorless, tasteless, non-caustic and formulates well with other compounds. As a platform technology, SDC is distinguished from competitors in the marketplace because of its superior efficacy, reduced toxicity and the inability of bacteria to form a resistance to it.
About PURE Bioscience
PURE Bioscience (PURE) develops and markets technology-based bioscience products that provide solutions to numerous global health challenges. PURE's proprietary high efficacy/low toxicity bioscience technologies, including its silver dihydrogen citrate-based antimicrobials represent innovative advances in diverse markets and lead today's global trend toward industry and consumer use of "green" products while providing competitive advantages in efficacy and safety. PURE Bioscience, headquartered in
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
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