PAOG Publishes 2022 Strategic Update

Rhea-AI Summary

PAO Group, Inc. (OTC Pink: PAOG) provided a strategic update on its CBD pharmaceutical and nutraceutical initiatives. The company is developing a CBD-based therapy for respiratory diseases, including COPD, targeting a $14.1B market by 2025. Favorable preclinical results support the potential of their flagship product, RespRx, with a CRO engaged for FDA approval processes.

Additionally, PAOG is launching a line of CBD nutraceutical products, aiming for quick revenue growth. The company anticipates a partnership announcement with Puration, Inc. for further product development.

Positive

• Engaged a CRO for FDA approval of RespRx, targeting a $14.1B COPD market by 2025.
• Favorable preclinical studies indicate significant potential for CBD in treating respiratory diseases.
• Initiated nutraceutical product line to drive rapid revenue growth and offset pharmaceutical expenses.

Negative

• Management acknowledges that the path to revenue from pharmaceutical developments is long and costly.

Sandusky, OH, Jan. 28, 2022 (GLOBE NEWSWIRE) -- PAO Group, Inc. (OTC Pink: PAOG) today released a 2022 strategic update on the company’s CBD pharmaceutical and nutraceutical development strategy. The update is included in its entirety below:

PAO Group, Inc. is an emerging cannabis and CBD company targeting growth via two tracks – pharmaceutical and nutraceutical. The Company is developing a cannabis extract-based therapy to treat various respiratory diseases and illnesses including COPD.  Recent independent research has confirmed PAOG’s previous conclusions that CBD may also be a viable treatment for COVID-19.

PAOG has positioned itself as an emerging CBD Biopharma company on a development path to treat various and major respiratory diseases that represent billions in potential market sizes.

The Company has engaged a CRO to initiate the process for potential FDA approval of RespRx, its new flagship COPD treatment. COPD represents an estimated $14.1B market by 2025.  

The World Health Organization estimates 65 million people worldwide are afflicted with moderate to severe COPD and GlobalData forecasts that the COPD treatment market will reach $14.1 billion by 2025. POAG, preclinical studies on COPD patients were conducted to evaluate the impact of its pharmaceutical grade cannabis extracts in combination with other therapies. Favorable results have triggered the planned PAOG development of this CBD-derived Biopharma product. PAOG has enter into an agreement with a Contract Research Organization (CRO) as a first step toward initiating an Investigational New Drug Application (IND) to commence the process for obtaining FDA approval for its RespRx as a COPD treatment.

PAOG acquired the proprietary formulations derived from a patented cannabis extraction process - U.S. Patent No. 9,199,960 entitled “METHOD AND APPARATUS FOR PROCESSING HERBACEOUS PLANT MATERIALS INCLUDING THE CANNABIS PLANT.” 

With the patented intellectual property (IP) to include the existing and ongoing research and development, and favorable preclinical studies, management’s over-lapping tracks is the development of a CBD Biopharma treatment for multiple respiratory-related diseases, notably COPD, COVID-19, and others.

In preclinical studies, experiments to evaluate the potential of cannabis extracts derived from the patented extraction process in the treatment of respiratory diseases were conducted. The experiments were designed to evaluate pure cannabis extracts and cannabis extracts in combination with other therapies in the treatment of chronic obstructive pulmonary disease (COPD) and Asthma.  There are a significant number of genes associated with COPD and Asthma. The experiments evaluated the ability of various formulations to change Asthma or COPD associated gene expressions in human small airway epithelial cells. A cannabis extract alone demonstrated remarkable activity in gene arrays by up- or down-regulating individual genes by as much as 200-fold.  Genes appearing especially sensitive to the introduction of cannabis extract were associated with inflammation, healing and cancer inhibition. Results from this series of experiments provided a baseline for comparison with data from subsequent studies, including a physiological study.

While the data behind PAOG’s pharmaceutical research is strong and management is confident in the potential of the proprietary technology to result in an FDA approved treatment, management recognizes the path to revenue is long and not without substantial expense.

According, PAOG has initiated a nutraceutical development strategy building on the same proprietary technology driving its pharmaceutical developments. The nutraceutical development strategy is anticipated to drive rapid revenue growth and offset the pharmaceutical development expenses.

PAOG has already launched its own independent line of CBD nutraceutical products under its “RX” label available for sale on North American Cannabis Inc.’s (OTC Pink: USMJ) ecommerce site www.usmj.com. PAOG expects to soon be adding to the “RX” CBD nutraceutical product line.

PAOG has also recently announced the development of a new line of CBD nutraceutical products for Puration, Inc. (OTC Pink: PURA) now underway.  PAOG also expects to make a strategic announcement with PURA regarding a new partnership on CBD nutraceutical production resources.

With the strategic overview provided today, PAOG management plans to follow up with a number of updates providing more detail on specific aspects of the strategic plan overviewed here today leading first with the anticipated joint announcement with PURA on the new nutraceutical production resource.

Learn more about PAOG at www.paogroupinc.com.

Disclaimer:

This News Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this news release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.

For More Information Contact:

Jim DiPrima
888-272-6472
info@pao.group

FAQ

What is PAO Group's strategy for 2022?

PAO Group focuses on developing CBD pharmaceutical treatments and launching nutraceutical products for rapid revenue growth.

What is the market potential for PAO Group's COPD treatment?

The COPD treatment market is estimated to reach $14.1 billion by 2025.

When is PAO Group planning to seek FDA approval for <i>RespRx</i>?

PAO Group has engaged a CRO to initiate the FDA approval process for RespRx.

How does PAO Group plan to offset the costs of pharmaceutical development?

PAO Group aims to offset pharmaceutical development costs by launching its line of CBD nutraceutical products.

What are the results of PAO Group's preclinical studies?

Preclinical studies showed significant potential for cannabis extracts in altering gene expressions related to COPD and asthma.