CEO, Chairman, and President: Ben Chang
WSA: Good day from Wall Street, this is Juan Costello, Senior Analyst with the Wall Street Analyzer. Joining us today is Ben Chang, CEO, Chairman and President of Rich Pharmaceuticals. The company trades on the OTCQB, ticker symbol RCHA. Thanks for joining us today, Ben.
Ben Chang: Sure, I am glad to be on.
WSA: Anytime now, starting off, please give us a history and overview there of the company?
Ben Chang: Well, this technology was discovered by my father Richard Chang and he was working with a compound in the early 70s. And by the time, by the late 80s around ’98, late 90s and 1998 he issued his first patent application. And in 2001 he received his patent for white blood cell elevation and treatment of leukemia. And in 2001, we entered into Phase I, he was able to enter into a Phase I trial in the United States at the Cancer Institute of New Jersey at UMDNJ. And from there on, it’s been you know progressing to get this drug to market.
WSA: Yeah and in terms of the main candidate there which is RP323, can you talk about the recent results there as far as the trials and the assignment agreement?
Ben Chang: Sure. We, I started this company back in July of 2013. And we were able to assign the AML indication into the company. And at that time we also took the company public and we proceeded to preventive technology to where we are today today. We are trying to perfect the indication and to enter Phase II trial. We have, also we have a second indication that we’ve recently assigned into the company. So we now have two that would potentially enter into the two Phase II trial and so our pipeline will have two indications.
WSA: And you also have some recent funding there to move it forward?
Ben Chang: Right, we were able to secure a roughly $4 million in S1 Registration with a company that was willing to support our technology that they were happy to hear what we were accomplishing in a very short time. And they liked our mechanisms of action, they thought there is some exciting technology there and yeah we were able to secure that about four weeks ago.
WSA: Great. And what are some of the current trends that you have been seeing in the sector right now and how else are you positioning the company to capitalize?
Ben Chang: Right, the main, you know there is basically three main trends that I noticed and regarding this business model, it’s really the streamline operations be efficient and focused have a focused team, which we really, I hold that on one of my top priorities because you know we are trying to limit our burden. So having a streamline operation, outsource our clinical, outsource to our third-party partners to handle our submissions or FDA submissions, keep track of our statistics, enter into clinical new sites.
We use the CRO instead of having that in-house, so we are not trying to employ hundred or a thousand employees at the time, we are just trying to be as lean as possible. Also we try to fine-tune our patient population by using biomarkers and different drug combinations to isolate the best use of our drug to specific patients. Even within the disease state, we try to isolate specific patients to increase our potential of higher efficacy. And also we try to mitigate risk and try to hit our, you know by hitting our endpoints and be very specific with our endpoints while they are having report, and be more specific with our endpoints. And therefore again, isolating the patient, higher potential efficacy and limiting that helps us stay lean.
And thirdly is the platform technology, we have platform technology. Our drug basically works across a number of disease states. We have two at this time, we use the same drug, basically the same, a multiple mechanism of actions, treating multiple disease states and that is sort of a new trend and that helps us to again stay very lean because you know we are not trying to develop two separate drugs for two separate disease state. We are using one drug and partly the same combination or possibly different that something we will find out in our Phase 2A study, but that also helps us stay very lean. So–but the key here is the state you know for our burn to be — a company has stayed very lean and to have a highest efficacy possible and try to isolate the patients and again just to circle back around to have a lean team and not to have too much of burn in our overhead.
WSA: And any other factors you feel make you guys unique from some of the other players here in the sector?
Ben Chang: Yeah again, the main one would be obviously the platform technology. I think that’s the main component of our company. And also our drug has multiple mechanism with action, I just mentioned. So that sort of, that is a very, we have an indications, our indications are affected by something called apoptosis which is the random killing of cells. And that’s interesting because that’s one mechanism and also it also clears the pathways for the, our cancer cells too mature into normal working cells. So there is multiple ways our drugs attacks the cancer and treats the patients.
WSA: Certainly and what are some of the key goals and milestones that you are hoping to accomplish over the course of the next 12 months?
Ben Chang: Well we would like to be in international studies, so I’d like to have clinical studies around the world. We like to be in parallel clinical studies for two different indications and run them at the same time. And simultaneously we like to be able to announce efficacy data for one or both studies within the 12 months.
WSA: And perhaps you can walk us through your background and experience there Ben and talk about the management team?
Ben Chang: Sure, I have started about six companies and my focus is international business, finance, good accounting background also. And I worked for a biotech company prior to my starting Rich Pharmaceuticals. I was with the company for 7 years as the President, COO of that company. And the rest of the team, we have many, many years of experience between the some of, few of my employees are retired, biotech people most of my staff or all of my staff except for one are from biotech.
The one that is not biotech is a CPA, he is the Financial Director of the company. Other than my Financial Director everybody else comes from the biotech or pharmaceutical industry. My COO has been a Vice President for a, a Director of Sales for many years for a major pharmaceutical. The Secretary of my company is retired scientist, biochemist from Hoffmann-La Roche. The investor has been pharmaceutical research for over 45 years, 121 publications.
My Chief Head of Clinical Studies is also retired from Hoffmann-La Roche and he has been in the industry for over 50 years, runs his own biotech company and assists me in Rich Pharmaceuticals. And so I have a very strong team, my CMC Director has also been in the pharmaceutical arena for nearly 30 years. He has extensive experience with our compound and with biotech and pharmaceutical industry in a whole.
So everybody I have is — we have many years of pharmaceutical experience which helps me also — that’s one thing that helps the company stay very lean because we can streamline and we have the experience to know not to spin our wheels or we basically run a straight line to reach our goals. And anything I can’t, I don’t have in-house then I will outsource to any third party companies like our CRO and who will expand our clinical studies to multiple clinical sites and hopefully international as well.
WSA: Sure and so as far as investors and the financial community are concerned, do you believe that the Rich Pharma story and your message and the company’s upside are completely understood and appreciated by them and if not what do you wish investors better understood about the company.
Ben Chang: Yeah, I am not sure if they know exactly what we are doing. So I would like them to realize that we do have a platform technology, we have multiple indications, potentially to face to studies, both indications have an orphan drug potential, we can have orphan drug status. We qualify on paper and we would apply for those, in the near future our AML drug is also a fast track drug. I am doing the research now to see if our second indication is also fast track.
Fast track means that the FDA allows less patients, little bit, slightly little more lenient regulations and just to and also some, also it allows us to have patent protection will be exclusive for a certain number of years, I believe it’s 7 years. So others will, that allows us to monetize our spending and you know we cover our losses in this development stage.
So I think we do have a lot to you know there is a lot that the public needs, would benefit from this information I believe. And I think the company should, I think investors should consider the company because really we haven’t been on the radar and I haven’t really put the word out because I was waiting to have the news of the second indication coming to the company, we want to be, we wanted the time to get the proper funding so that we can develop old drugs simultaneously and I think this is a good time for the public to hear about it. And I do believe that we are under valued as this time so I think it’s a good time for investors to get in to the game right now.
WSA: Sure and once again joining us today is Ben Chang, CEO, Chairman and President of Rich Pharmaceuticals which trades on the OTCQB ticker symbol RCHA currently trading at the $0.2 cents a share market cap north of $8 million. And before we conclude here, Ben, I think you covered most of it, but just to briefly recap your points once again, why should investors consider the company as an investment opportunity today?
Ben Chang: Again I really think that the company runs very lean. The platform technology is really the upcoming thing. We can work our single drug across a number of indications and we plan to have an international study, which gives us a good broad base of patient population and also some cost savings, when we do our trials internationally.
WSA: Well we certainly look forward to continue to track the company’s growth and report on your upcoming progress and we would like to thank you for taking the time to join us today Ben and update our investor audience on Rich Pharma.
Ben Chang: Thank you so much Juan, thanks for having me.