Generex Biotechnology Corp. (OTCQB:GNBT) is an integrated healthcare holding company with end-to-end solutions for patient centric care from rapid diagnosis through delivery of personalized therapies. Generex is building a new kind of healthcare company that extends beyond traditional models providing support to physicians in an MSO network, and ongoing relationships with patients to improve the patient experience and access to optimal care. In addition to advancing a legacy portfolio of immune-oncology assets, medical devices, and diagnostics, the Company is focused on an acquisition strategy of strategic businesses that complement existing assets and provide immediate sources of revenue and working capital. Recent acquisitions include a management services organization, a network of pharmacies, clinical laboratory, and medical device companies with new and approved products.
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INTERVIEW TRANSCRIPTS:
WSA: Welcome back listeners the Wall Street Analyzer CEO Interview Series. Today we are joined by Joe Moscato he is the CEO for Generex Biotechnology which trades on the OTCQB, ticker symbol GNBT. Thanks for joining us today there Joe.
Joe Moscato: Thank you for having me, good to be back.
WSA: Yes certainly I appreciate you taking the time to get an update here for our audience, I know you’re at a conference. So starting off, can you provide us with an intro there for some of our listeners that didn’t catch our previous interview from a few months back?
Joe Moscato: Sure, Generex is an integrated healthcare company. We develop drugs, we’re commercializing drug treatments. We have a MSO network that we facilitate products and services through as we’ve acquired a diagnostic business. And we are putting together a patient centric – doctor centric platform that allows patients and doctors to gain considerable value and benefit in what we provide; drug services and products.
WSA: Sure, so bring us up to speed on some of that most recent news as you’ve recently added MediSource Partners, you had a few other additions and update your pipeline.
Joe Moscato: That’s more exciting. The last two acquisitions before we make our move to the Nasdaq in up-list that we announced. We put our application in for the up-list with Nasdaq last week, and we’re confident that will get listed. MediSource and Pantheon are a two other great companies with huge growth potential that we can provide considerable value to by utilizing their products and services through our backbone of MSO. So let me explain how we do that. So we have many podiatrists in our MSO and many surgeons…
WSA: That’s like your network, right?
Joe Moscato: Yeah, the network. So we have a standardized way of selling products just like any other drug companies. Let’s look at these two acquisitions. MediSource provides our products for podiatrists and surgeons, as well as Pantheon provides kits for orthopedics to fix feet and ankle as well as biologics. So those products and services now goes through our own doctor network where those doctors are able to receive a big benefit in the cost, right? We pass that cost (savings) onto them to them, which then they could pass on to their patients as well as reap the rewards of having not only the hardware, of these two companiesas well as the varying treatments post and pre-op. And in addition there is a treatment paradigm with Olaregen. Olaregen got their products cleared by the FDA for diabetic wound foot. It’s a horrible disease that stems from mostly type-1 diabetics.
And we’re able to now take care of those wounds as well as the ulcers of the feet and the ankles. And then if there is any bone damage, we are able to now provide that hardware to the doctors where they now can do surgery, fix the area and then we provide all other solutions to the patient. So it’s a full enterprise that we’re putting together, they’re other acquisitions that we want to make, but we’ll make those after our NASDAQ listing, and there are many reasons for that.
WSA: Yeah, certainly understood. So, you operate through your main subsidiary which is Olaregen. Can you talk a little bit about more about the way the company operates within the sector? What are some of the other acquisitions that you’re looking at perhaps as far as things that are a symbiotic?
Joe Moscato: Sure. So the Olaregen is one of our stars. They have FDA cleared approval with 17 treatment indications for wounds. Wounds are a major, major market worldwide, well over $40 billion. And we have approval in most all of the various wound categories. Our big areas that we’re commercializing now, be a couple of them, is [inaudible] surgery as well as diabetic wound foot, compression sores. So we have McKesson as our master distributor.
We launched two months ago. We launched that at one of the big conventions conventions in San Antonio, Texas. And then we went to the APMA conference last month, which the American Podiatry Medical Association gave us their seal of approval for the product. And we’re really excited about that because now we have access to all 12,800 of their doctors/physicians, which utilize our product. And the product works really, really well as evidenced by the FDA data that we sent in and their response to our approval. So we’re very, very exciting time for Generex for all our subsidiaries.
WSA: Sure, yeah. Well, what are some of the goals and milestones here that you are able to talk about? What are some of the markers that investors should keep an eye on here?
Joe Moscato: Well, Generex as I said prior, we put the application in for our Nasdaq listing last week. We believe we’ll get that listing and we’re working hard to achieve that. In addition, we’ve committed 21 million shares in the pool that I control with four individuals—myself, one of my board members and then two investors from the early days gave up our dividends, put themin the pool and now I’m going to be retiring that once we’re Nasdaq listed. And that’s huge, about one third of the total amount of shares that are out will now go back into the treasury at Generex. So, as we get close to the Nasdaq listing, we announced a one for one stock dividend to our shareholders. And that one to one stock dividend will be paid after we’re Nasdaq listed.
Well that’s really exciting; it’s a huge dividend, it’s considered a large one. And you know, shareholders we promised that we would take them with us out on our success and that’s what we’re doing. We get the Nasdaq listing, which in the last part of my three part plan that I announced in 2017 in January. And then we can concentrate solely on growing this whole enterprise out. We do have other acquisitions lined up. We want to make those acquisitions based upon financing from a Nasdaq perspective, being a Nasdaq company. And we will achieve those acquisitions, I believe shortly after we’re Nasdaq listed. We’ve announced a few of them. One is a very big direct to-patient business with an end to end solution for patients, works with their doctors in providing full benefits to pharmacies, scanning, labs to those patients with a national footprint. So, we’ve been auditing that business about a year and three months it took us in order to complete. And I like to make that acquisition as soon as we’re Nasdaq listed. I don’t want to be raising money down here in the OTC, it just becomes very problematic with what firms want because of the huge upswings and uncertainty in the OTC?
WSA: Yeah, certainly so you’re looking to become a one stop.
Joe Moscato: Well, you know reality we’d like to do is via PBM plus, plus, plus because we are a developer of drugs. We do see other opportunities in that area that we’d like to acquire. But via PBM from a prospective of providing what their initial mission statement was, and that was to provide the doctor a seamless operation, and the patient the benefit from a cost basis and an insurance basis. So we believe that we’ve acquired the necessary pieces. There are many other pieces we need to acquire to ultimately get to where we want to go, which is a nationwide MSO network for GPO networkthat will ultimately turn into an HMO and have a lot of premium and extra benefits for our patients and our doctors.
WSA: Sure, and at the same time trying to continue to concentrate on maximizing shareholder value.
Joe Moscato: That’s first and foremost for me. I value the shareholders. I value, allowing us to clean up the company in 2017 and onward to our finality of Nasdaq listing. So they’re important to me and we’re a public company so if you take care of your shareholders first, everything else in my opinion will fall into place. Everything else you want to do as a public company.
WSA: And Joe, can you talk a little bit more about yourself? What your background is in the market and who your management team is? What makes you guys well positioned there to be able to deliver on those milestones?
Joe Moscato: Sure. So I’m an old-time advertising marketing sales guy. I’ve been in Pharma — I started my career in Pharma advisor. I’ve worked through the ranks of the healthcare industry where today it enabled me to take the rank in Generex and build the necessary relationships that want two companies that we’re acquiring to be part of this enterprise we’re putting together. If you take a look of my board as well as my team, my management team, you have Terry Thompson, he is part of the founding members of Medco which was sold to Merck,today it’s called Express Scripts and that’s being acquired today for huge amounts of money. I’ve got Anthony Krishy one of my in house counsels, who’s also a CPA. He helped on the Catholic Hospital Network, as senior management as well as other healthcare related industries.
And I’ll break it down real simple. What we’re trying to do is build a large pharmaceutical company. I’ve been part of two small companies that today are large pharmaceutical companies in the past. And there are 10 guys in the top of that company. They have well over 30 divisions; in each division they have great management teams, great services and great products, those management teams deliver. They are in charge of their own PNLs and by each and every quarter they go upstairs and drop off that PNL, enabling those 10 guys at the top to do their quarterly reports in a year end.
We’re doing the same thing here. We’re acquiring great management team, a great product, great services that are responsible for their own PNLs. That can add value enterprise wise. Be compatible with each other, and be able to leverage the assets of one another as well as run independently and create their own profit centre. You know, we’re very excited about a partnership we have in Arizona, that partnership is with a bunch of different clinics. One clinic in itself has about 55,000 patients, 25,000 are insulin dependent and we are planning on starting a podiatry and ophthalmology business with those clinics. Now we’ll have boots on the ground there. We’ll have in their clinic those operations, each and every one of those patients now can receive an eye exam and podiatry exam, as well as creating an MSO with that group.
So it’s a very exciting time for us, the hurdles that we had to overcome to clean up a 23 year old public company that was literally dormant, has been incredible, and we were able to do that. Now we’re executing on our master plan that is to acquire companies that make sense for what we want to create and we’re doing that. So I couldn’t be more happy with the management team that we have, you can go to the website and look at the management team members as well as the board at www.generex.com, G-E-N-E-R-E-X.com, they’e knee-deep in experience.
WSA: Great certainly. So once again, joining us today is Joe Moscato, he’s the CEO and President of Generex Biotech Corporation. The company trade as mentioned on the OTCQB ticker symbol GNBC currently trading at $2.43 a share and a market cuff is about 150 million. So, before we conclude here, Joe, is there anything else you’d like to add about Generex about why investors should consider the company as a good investment opportunity at this point?
Joe Moscato: Well, by our track records in 2017 January, what we’ve been focused on, in addition to our plan is providing value to our shareholders. And since we started it, we’re up about 2500-3000%, in providing that benefit to our shareholders. Share holders are the life blood of this company, without shareholders we wouldn’t be able to do the acquisitions or get to the Nasdaq. So for us, I will always think about the shareholders. They come first and we’ve been doing that since I’ve taken over the company. So, we’ll continue to do that, we’ll continue to provide value. And there’ll be some hiccups, there’ll be ups and down, but for sure, investors are our foremost high as far as what we consider with everything we do.
WSA: Well, we look forward to continuing to track the company’s growth and progress and we’d like to thank you for taking the time to join us today, Joe, and update our investor audience on Generex. It was great having you on.
Joe Moscato: Thank you very much. I appreciate it. And we’ll probably be back someday in the future.
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