Nika Pharmaceuticals, Inc. (NIKA) Presents Its Business Strategy

Rhea-AI Summary

Nika Pharmaceuticals (NIKA) announced plans to become a sustainable business, focusing on pharmaceutical production and profitability. Key developments include constructing three factories for injection drugs, tablets, and dietary supplements.

On May 9, 2024, NIKA acquired a production building valued at $2,045,209 for an injection drug factory, expected to finish by December 31, 2024. A new vial production line is set to produce 18,000 vials per hour, with an annual capacity of 3.5 million sets of ITV-1, generating significant profits.

NIKA's Joint Business Agreement with Immunotech Laboratories BG facilitates the production and distribution of ITV-1, an AIDS treatment, expected to start at 30% capacity in 2025, aiming for 90% by 2026. Distribution agreements cover UAE, Ukraine, Iraq, Jordan, and Syria, with ongoing negotiations for more territories.

NIKA's portfolio includes generic drugs and dietary supplements, with ongoing development and market expansion plans. A comprehensive five-year business plan is being prepared to outline future growth.

Positive

• Construction of three pharmaceutical facilities, enhancing production capabilities.
• Acquired a production building valued at $2,045,209 on May 9, 2024.
• New vial production line with a capacity of 18,000 vials per hour.
• Potential yearly production of 3.5 million sets of ITV-1.
• Expected net profit of $1,120 per set of ITV-1.
• Joint Business Agreement with Immunotech Laboratories BG for ITV-1 production and distribution.
• Distribution agreements in UAE, Ukraine, Iraq, Jordan, and Syria.
• Exploring further distribution agreements, including Nigeria.
• Portfolio includes technologies for several generic drugs and dietary supplements.
• Plans to expand market presence in the EU, Asia, and Africa.

Negative

• High initial investment required for factory constructions.
• Completion of injection drug factory not expected until December 31, 2024.
• Starting production capacity of only 30% in 2025.
• Dependency on successful negotiations for additional distribution agreements.
• Potential risks associated with the production and distribution of new drugs.
• Uncertainties related to the timely acquisition of suitable buildings for new factories.
• Longer-term profitability dependent on scaling production to 90% capacity by 2026.

HENDERSON, Nev., June 03, 2024 (GLOBE NEWSWIRE) -- Nika Pharmaceuticals, Inc. (OTCMKTS: NIKA) introduces its plans to develop the company into a sustainable business project that will consistently grow, bring good profits and provide dividends to its shareholders.

To achieve its goals, NIKA will work towards the construction of three pharmaceutical facilities:

1. A factory for the production of drugs in injection form
2. A factory for the production of drugs in tablet form
3. A factory for the production of dietary supplements

On May 9, 2024, NIKA became the beneficial owner of a production building valued at $2,045,209 that was previously purchased and renovated by CEO Dimitar Savov. There, the factory for drugs in injection form is under construction according to GMP standards and will be finished by December 31, 2024. NIKA’s subsidiary, Nika Europe, Ltd., has signed a Supply Agreement and put a down payment for a brand-new vial production line equipment. The full capacity of the production facility will be 18,000 vials per hour, which will result in a maximum yearly production capacity of 3,500,000 sets of ITV-1¹. The retail price of one set of ITV-1 will be 3,300 EUR (around $3,500), from which there will be a net profit of around $1,600, with Nika receiving $1,120 in net profit, with the remaining $480 going to Immunotech Laboratories BG. On August 1, 2022, NIKA signed a Joint Business Agreement with Immunotech Laboratories BG, which holds the exclusive rights for production and distribution of ITV-1 and has completed a clinical trial on AIDS patients showcasing great treatment results (See Final Report). The agreement’s goal is to combine efforts to realize the registration, production and distribution of medicinal products based on the Inactivated Pepsin Fraction (“IPF”). NIKA estimates to initially start at a 30% production capacity in 2025, which should generate a net profit of around 1.176 billion USD by the end of 2025, whilst working towards a gradual production rate increase of up to 90% of the maximum capacity by the end of 2026.

NIKA currently has signed distribution agreements with strategic partners who have been provided with exclusive distribution rights for the ITV-1 treatment for AIDS on the territories of the UAE, Ukraine, Iraq, Jordan, and Syria. There are ongoing negotiations for exclusive distribution rights for additional countries including Nigeria, as NIKA strives to choose the most suitable partners. “Thanks to my personal contacts in Europe, Asia, and Africa, and Bulgaria’s strategic location, Nika Pharmaceuticals has a great prospect of choice of strategic partners,” stated Savov. Bulgaria’s EU membership also provides NIKA with a direct access to a 450 million market. “Since ITV-1 has shown great treatment results and is compatible with other currently used drugs for the treatment of AIDS, ITV-1 will serve as a great supplementary tool in the battle against AIDS. Due to its wide-spectrum antiretroviral action, ITV-1 can also be useful in the treatment of other viral-based diseases,” continued Savov.

Given that more than 50% of the drugs worldwide are generic, NIKA purchased the technologies and full registration dossiers for the production of generic form of VINPOCETINE 10mg, MENTHYL VALERATE 60mg, METAMIZOLE SODIUM 500mg (See April 15 PR). NIKA is exploring options for suitable buildings for a factory for production of drugs in tablet form and will announce specific details once a final decision is made. NIKA has since purchased a full dossier for GALANTAMINE HYDROBROMIDE 5mg, used in the treatment of forms of dementia, and continues to explore other technologies for the production of generic drugs. The company strives for its portfolio to include treatments for the most common and significant diseases.

“We are negotiating to acquire a half-built factory for dietary supplements, as NIKA now has 11 dietary supplements in its portfolio, six of which, namely Physiolong, Carotilen, Hypocholestin, Biodetoxin, Anthocylen C and Silymaron, have shown useful properties and are already on the market in Bulgaria, whilst we are working to launch wider distribution in the entire European Union, Asia, and Africa,” explained Savov.

NIKA is preparing a comprehensive business plan, which will include detailed information and estimates for the company’s development in the next five years. “I believe that this informal business strategy will be a good way for investors to understand the mindset of the management of our company, as every shareholder, no matter the size of their ownership, is equally valuable to us. I want to thank our shareholders once more for giving their trust in our company,” concluded Savov.

About Nika Pharmaceuticals, Inc.

Nika Pharmaceuticals, Inc. (NIKA) is a pharmaceutical company, specializing in the treatment of HIV/AIDS, Hepatitis B and C, Rheumatoid Arthritis, Cancer, Diabetes, and all diseases, for which strengthened cell immunity is of vital importance. NIKA’s intellectual property includes six drugs in injection form – two of which have successfully undergone clinical trials with good treatment results – four drugs in tablet form, and eleven dietary supplements. NIKA’s goal is to not only achieve corporate profits, but to provide better and easier access to life-saving medicinal drugs and useful dietary supplements. Find more on www.nikapharmaceuticals.com.

Forward-looking Statement:

This press release contains forward-looking statements. Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements.” These forward-looking statements generally are identified by the words “believes,” “expects,” “anticipates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.

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¹ Assuming a 10-hour work day with 26 active working days on average per month, the factory will produce 56,000,000 vials per year at maximum capacity, which equals 3,500,000 sets containing 16 vials each.

FAQ

What are Nika Pharmaceuticals' plans for future growth?

Nika Pharmaceuticals plans to construct three pharmaceutical facilities and expand production capacity, focusing on both pharmaceutical drugs and dietary supplements.

When will Nika Pharmaceuticals' injection drug factory be completed?

The injection drug factory is expected to be completed by December 31, 2024.

What is the projected production capacity of Nika Pharmaceuticals' new vial production line?

The new vial production line has a projected capacity of 18,000 vials per hour, with an annual capacity of 3.5 million sets of ITV-1.

What is the potential profit per set of ITV-1 produced by Nika Pharmaceuticals?

Nika Pharmaceuticals expects a net profit of $1,120 per set of ITV-1.

Which countries have distribution agreements for ITV-1 by Nika Pharmaceuticals?

Distribution agreements for ITV-1 have been signed for the UAE, Ukraine, Iraq, Jordan, and Syria.

What are the initial production capacity targets for ITV-1 in 2025?

Nika Pharmaceuticals aims to start at 30% production capacity for ITV-1 in 2025.

What are Nika Pharmaceuticals' long-term production capacity goals for ITV-1?

Nika Pharmaceuticals aims to increase ITV-1 production capacity to 90% by the end of 2026.

What other products are included in Nika Pharmaceuticals' portfolio?

Nika Pharmaceuticals' portfolio includes generic drugs like VINPOCETINE, MENTHYL VALERATE, and METAMIZOLE SODIUM, as well as dietary supplements such as Physiolong and Carotilen.