HARD TO TREAT DISEASES INC.
(Symbol: HTDS: PK)
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Hard to Treat Diseases Inc. publishes this Quarterly Report to serve the company's
followers, investors and the public as a guidance through the past events and possible
outcomes of these e vents in the upcoming quarter(s). The goal of this Quarterly Report
is to inform about the activities and business achievements accomplished Hard to Treat
Diseases Inc. during the January 1 March 30, 2010 period. This report assembles and
summarizes all developments achieved during this time period.
OTC Market Tier:
Pink Sheets No Information
Primary SIC Industry Classification: 8071 - Medical laboratories
Company State of Incorporation: FL
Jurisdiction of Incorporation:
Year of Incorporation:
Terry Yuan, CEO
Michael Arnkvarn, President, Subsidiary
Carol Robichaud, Secretary
Fred Carlini, SVP Bus. Ops., Research &
Development, Business Affairs
Cathy Zhao, Chief Admin. Officer
Dr.Sanja Pekovic, Chief Project Scientist, Chief
Professor Dr. Mirjana Stojiljkovic, Director,
New Projects, Chief Scientist
Dr.Sabera Ruzdijic, Medical Director
Dr. Jasna Bankovic, Medical Director
Dr. Nikola Tanic, Medical Director
Dr. Milica Pesicand, Medical Director
Ivana Gadjanski, Director, Comm.
Rudolph Dahl, Business Affairs, Research &
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Development, Director, New Projects,
Director, Mkt. & Events
Estimated Market Cap:
$12,192,792 as of Apr 28, 2010
4,515,848,766 as of Sept 30, 2009
8,800,000,000 as of Feb 18, 2010
1,072,581,000 as of Jun 30, 2009
Number of Shareholders of Record:
4,760 as of Sept 10, 2009
Hard To Treat Diseases Inc.
Hard to Treat Diseases Inc. is a parent company that operates 2 medical subsidiaries in
Serbia and Mainland China and a cosmetics company in Canada
Shenzhen Mellow Hope Pharm Industrial Co., Ltd. is the biggest exporter of
biological vaccines in China.
Mellow Hope partners with many well-known biological
institutes in the Research & Development of new products and the introduction of new
technologies they carry out clinical trials, secure registrations, and promote and market
products around the world.
Slavica BioChem comprises a group of scientists conducting cutting edge research on
neurological disorders of the central nervous system (CNS), namely Multiple Sclerosis
and Traumatic Brain Injury, and developing therapeutic treatments. The company's
primary focus involves the enhancement and modification of existing approved drugs
such as "Virazole" for the purpose of chemical repair of damage to the CNS (central
nervous system), MS (Multiple Sclerosis), SARS, Hepatitis C and HIV.
Collagenna is a natural health product and cosmetics company. Their main product line
showcases anti-aging technology in a natural skin care line that repairs and rejuvenates.
Hard to Treat Diseases, Inc.
2007 Shenzhen Mellow Hope Pharm.
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Room E-F, 12/F, Jinrun Mansion
No.6019 Shennan Blvd
Business Development Overview
In this quarter, HTDS completed a merger between Melem Secrets and Collagenna. The
new merger company, Collagenna, will market the skin care products, and Melem
Secrets will produce neutraceutical supplements. They commenced an expanded
distribution strategy, involving an agreement with a Swiss distribution company. Mellow
Hope developed several vaccines which received international certifications and
international customers. Slavica BioChem announced its plans to develop its own stem
2.1 Global Immunization Report
In 2002, the World Health Organization estimated that 1.4 million of deaths among
children under 5 years were due to diseases that could have been prevented by routine
vaccination, representing 14% of total global mortality in children under 5 years of age.
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Since 2000 momentum has built around immunization for preventable diseases, in part
due to a global health partnership between the WHO, UNICEF, World Bank and Bill &
Melinda Gates Foundation, known as the GAVI Alliance (
In eight years, a record number of vaccines became available worldwide, and 106 million
babies under the age of 1 were vaccinated in 2008, according to a joint report by the
World Health Organization, and United Nations. Immunization was partly responsible
for the first documented decline in annual deaths among children below 10 million, and
with helping to bring about a 74% drop in worldwide deaths from measles between
2000 and 2007. The global vaccine market tripled to $17 billion, and the boom has
spurred vaccine development aimed at AIDS, malaria, tuberculosis and dengue fever.
It is estimated that an additional investment of $1 billion USD would ensure availability
of the new and existing vaccines to all children in the world's 72 poorest countries
where preventable diseases take their deadliest toll.
In addition to aiding a good cause, the rising demand for immunization in the
developing world has profited global manufacturers, who now meet 86% of global
demand for traditional vaccines against diseases such as measles, whooping cough,
tetanus and diphtheria.
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A rapidly growing population in the developing world ensures that many more children
will benefit from the success of this industry. Mellow Hope's goal is to grow to become
one of the top vaccine distribution providers in the world and to restore global health.
2.2 Market Research in Neurological Disorders' Treatment
Central nervous system disorders are often complex, debilitating patients and placing a
large economic strain on patients' families and the health system.
Mutiple Sclerosis Treatments Market
Multiple Sclerosis (MS) is a disease which affects the brain and spinal cord and can lead
to a broad range of symptoms, including physical and cognitive disabilities. MS affects
people between the ages of 20 to 50, people in the prime of their life.
The World Health Organization (WHO) estimates that over 2.5 million people globally
suffer from Multiple Sclerosis (MS). With the high global population's growth rate
(anticipated to reach 7.6 billion by 2020), the prevalence and onset of MS in children
and adults is expected to increase exponentially.
The largest percentages of MS patients reside in the 7 major markets: US, Japan, France,
Germany, Italy, UK, and Spain. These seven major market MS revenues increased 14.7%
to $4.6 billion in 2006 alone, and reached total global revenues of over $6 billion in
2008. Those revenues will exceed $9 billion (2015-2020).
Traumatic Brain Injury (TBI) Treatments Market
A traumatic Brain Injury is caused by a strong blow to the head or a penetrating head
injury that disrupts the normal function of the brain. The majority of TBI cases (60%)
result from Road Traffic Injuries (RTIs), followed by falls (20-30%) and violence (10%).
Almost 2% of the US population lives with TBI-related disabilities. Annually, 1.1 million
Americans receive treatment for TBI, with 230,000 hospitalizations. According to the US
Center for Disease Control and Prevention, every 15 seconds one American sustains a
significant traumatic brain injury, and about one third of injury related deaths in USA
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link to TBI. Predictions show that TBI will surpass many diseases as a major cause of
death and disability by 2020.
Cost studies from high-income countries such as the U.S., which attempt to incorporate
the lost earnings of injured individuals and their caregivers, indicate national
expenditures of $56.3 billion USD annually.
Slavica BioChem is well-underway in developing effective therapies for both
neurological disorders outlined above.
2.3 The Skin Care Industry
Even during tough economic times, the cosmetic industry has proved resilient as
customers continue to spend on skin care products, particularly anti-aging facial skin
products. Further, Collagenna's natural product niche means it is poised to benefit from
the largest growth in the sector.
In 2007, the global skincare market grew by 4.1% and reached a value of $49.5 billion.
Despite a minimal decline in 2009, the market research company NPD predicts return to
growth. Forecasts calculate a market value of $58.2 billion by 2012.
Anti-aging products represented 62 percent of the prestige facial skincare market in
2009, with NPD's point of sale data estimating its worth at $1.2 billion. NPD's Women's
Skincare In-Depth Consumer Report, which surveyed over 6,000 consumers, revealed
that anti-aging is
the key motivator when it comes to buying facial skincare products. 53
percent of respondents asserted that the benefits of anti-aging were very or extremely
important to them.
Collagenna's focus on natural products indicates market foresight.
The natural and
organic sector is the fastest growing in the North American cosmetics & toiletries
industry, with sales increasing by 20% a year. (2007) Consumers are increasingly
demanding of green products today, and in response, large cosmetic companies,
retailers, drugstores and pharmacies across North America and Western Europe are
incorporating natural and organic cosmetics into their product offerings.
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CORPORATE SECURITY SUMMARY
Over the quarter, the HTDS stock remained relatively high, with a momentary dip in
February. Around that time, investors expressed concern about the lack of news for the
company. In the second half of the quarter, there were many news and filings with
updates about the exciting company developments.
In January, HTDS entertained the idea of a merger with an EU based, stem-cell research
company. Instead, Slavica Biochem decided to commence its own stem cell bank
project. Stem cells have potential therapeutical use for neurodegenerative disorders.
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On January 12, HTDS announced to shareholders that they would receive shares of HIRU
for HTDS' sale of MindUp Division, as a special onetime payment of kind. 40,000,000
shares of Hiru Corporation were issued from this agreement. The next day, the company
informed shareholders of a five-for-one forward split (5-1) of the Company's common
stock, adjusting the HTDS payout from 40 million shares to 200 million shares.
In January, HTDS also evaluated an unsolicited business proposal from an obstetrician
type medical company, engaged in a treatment for pre-term labor and induction of
labor. The results of the merger discussions are not yet determined.
On February 25, HTDS reported that its subsidiary, Melem Secrets, completed a cosmetic
micro-conglomerate merger, resulting in the acquisition of Collagenna Skin Care
Products Inc (Collagenna), a thriving micro cosmetics company. Collagenna Skin Care
Products Inc will take over the management of Melem's Secret and will look after all of
the aspects of this company including product development. Collagenna was acquired
on all cash basis therefore the existing share structure of HTDS remained undisturbed
In this quarter, HTDS had to contend with the "skull and bones" rank on Pink Sheets. The
company believes that this occurrence stems from the stubborn naked short position
and an incorrect assumption that the company was diluting its float. There is also
speculation that this label occurred because of limited filings. Mid-month bashers were
responsible for degrading Mellow Hope's agreement with Chile, speculating that the
news was not sufficient evidence of the agreement. HTDS has taken legal action on this
matter. As with the planned distribution of the MindUp division to its shareholders, the
company is looking at other ways to shake the naked shorts and, more importantly,
return value to its shareholders. A reverse takeover is one option being explored by the
company with an unrelated entity engaged in a medical rejuvenative reconstruction, an
unrelated issuer in a medical industry, and a medical supply development company
creating a 4-way medical conglomerate. HTDS is actively working hard at removing their
company from the "skull and bones" status.
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SUMMARY OF BUSINESS EVENTS
Slavica Biochem participated in several events that recognized their work and raised
Slavica's profile. In early January, their research group, IBISS, participated in the Moscow
International Salon of Inventions and Innovation Technologies, representing the "delay
of Glial Scar Formation as a Prerequisite of Recovery after Central Nervous System
Injury."On February 5 and 6, two members of its scientific team, Dr. Sanja Pekovic, Chief
Project Scientist, Chief Strategy Officer and Dr. Ivana Gadjanski, participated in the
"Stem Cells and Neuroregeneration" Symposium, held in Haarlem, the Netherlands. The
main topic of the Symposium was the potential therapeutical use of neural stem cells for
Mellow Hope made headway with its products, receiving international certificates and
business. On February 18, subsidiary Mellow Hope exported its first shipment of the
H1N1 vaccine to Chile. The company values the price of the order at about $1 million
USD. On March 1, Mellow Hope announced that the company had a final evaluation
meeting with the Drug Controller General of India on Cerebroprotein Hydrolysate for
Injection. The company entered the final stage of product quality testing which will
result in the issue of a Registration Certificate for the medicine. The company believes
that, once approved, HTDS will be the only supplier of this product to India, and
estimates Nutriprotein market size to 2 to 3 million doses annually. Nutriprotein
medicine is a unique brain nutrient that helps the Central Nervous System in regulating
and improving nerve cell metabolism, promoting synapse generation, inducing nerve
cell differentiation and protecting nerve cells against damages by ischemia, neurotoxins,
etc. Mellow Hope also received a Registration Certificate for its MEVAC-Vari vaccine in
Guatemala. This is the first Final Approval for HTDS' Varicella vaccine in South America.
In general, doctors regard Varicella, commonly known as chickenpox, as a mild viral
illness. However, approx. 1 in 50 cases chickenpox associates with complications such as
pneumonia and encephalitis, and both diseases report high mortality rate. On March 15,
following 18 months of testing and negotiations, Chile's Ministry of Health approved
two of HTDS' penem injectables, Meropenem for Injection (MEINEN) and Imipenem for
Injection (IMINEN). HTDS received the registration certificate for these two medications
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from the Chilean ISP and the company prepares to ship its products to this emerging
South American market.
Melem Secrets/ Collagenna had several developments in this quarter as well. In March,
they announced an exclusive distribution agreement with Alphaderm Body and Wellness
from Switzerland. On March 17 Collagenna received its first major order from its
distribution partner in Brazil. Over 600 products were ordered, with a total value of
approximately $36,000. At the end of the quarter, Melem Secrets distinguished their
brand's product offering neutraceutical supplements and natural health products. The
company will introduce a new Baobab supplement that originates from Africa and has
many health benefits such as its antioxidant value, its high source of calcium, iron,
potassium, magnesium and Vitamin C. Melem Secret plans to market other products
including Marine Collagen Capsules, Omega 3 gel capsules as well as the Skin Defense
the quarter, January 1 March 31, 2010 period, the revenue of Hard To Treat
Diseases is reported to be
$2.164 million, with a profit of $218,692.
financial reports will be posted with the Pink Sheets Filing system shortly.
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Global Immunizations Hit Record but Miss Millions, David Morgan, Reuters, Oct. 21,
Vaccine-preventable Diseases, World Health Organization;
Safe Harbor Statement
Information in this news release may contain statements about future expectations,
plans, prospects or performance of Hard to Treat Diseases Inc. that constitute forward-
looking statements for purposes of the Safe Harbor Provisions under the Private
Securities Litigation Reform Act of 1995. The words or phrases "can be," "expects," "may
affect," "believed," "estimate," "project" and similar words and phrases are intended to
identify such forward-looking statements. Hard to Treat Diseases Inc. cautions you that
any forward-looking information provided by or on behalf of Hard to Treat Diseases Inc.
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is not a guarantee of future performance. None of the information in this press release
constitutes or is intended as an offer to sell securities or investment advice of any kind.
Hard to Treat Diseases Inc.'s actual results may differ materially from those anticipated
in such forward-looking statements as a result of various important factors, some of
which are beyond Hard to Treat Diseases Inc.'s control. In addition to those discussed in
Hard to Treat Diseases Inc.'s press releases, public filings, and statements by Hard to
Treat Diseases Inc.'s management, including, but not limited to Hard to Treat Diseases
Inc.'s estimate of the sufficiency of its existing capital resources, Hard to Treat Diseases
Inc.'s ability to raise additional capital to fund future operations, Hard to Treat Diseases
Inc.'s ability to repay its existing indebtedness, the uncertainties involved in estimating
market opportunities, and in identifying contracts which match Hard to Treat Diseases
Inc.'s capability to be awarded contracts. All such forward-looking statements are
current only as of the date on which such statements were made. Hard to Treat Diseases
Inc.'s does not undertake any obligation to publicly update any forward-looking
statement to reflect events or circumstances after the date on which any such statement
is made or to reflect the occurrence of unanticipated events.