THE COMPANY

Cobrek Pharmaceuticals, Inc. is in the business of creating and executing high-return intellectual property strategies within the branded and generic small-molecule drug sectors. Cobrek’s general strategy is to find and exploit special situations where the total investment in financial and human resources can be kept “low” compared to industry standards. These opportunities may relate to new chemical entities or technologies, but more often consist of overlooked or hidden niches of value associated with exist.

Cobrek’s approach is driven first and foremost by investment considerations, i.e., limiting capital formation to minimums while maximizing return on investment. To execute its strategy, it concentrates its efforts exclusively on the front end of drug life cycles. The Company excels at conceiving, validating and engineering product strategies and is expert at executing the steps which precede product launch (e.g., development, formulation, clinical testing, FDA filing and, where applicable, patent litigation). Cobrek employs contractors and/or relies on joint venture partners to provide manufacturing capacity and to execute marketing and logistics functions.

Cobrek’s predecessor company was Pentech Pharmaceuticals, Inc., a company founded in the 1990s to pursue a set of particular technologies relating to human sexual dysfunction, which it correctly identified as an underserved and potentially vast opportunity. Our opinion of the market was confirmed in March of 1998 with the introduction of Viagra by Pfizer. Over time, however, due to a series of disruptions and distractions, the Company’s strategy evolved into a more generalist approach based primarily upon entrepreneurialism and special situations.

Today Cobrek operates on the idea that much of the value inherent in drug development may be identified and captured without massive new investments in human and capital assets. While access to marketing and manufacturing assets is required for the ultimate success of any product, Cobrek has found that it is better for all concerned for the Company to cooperate with larger companies instead of duplicating their fixed asset bases. The Company thereby avoids the capital-intense investments associated with large-scale manufacturing and marketing capacities, while providing its partner companies with ready-made product opportunities which can be quickly inserted into their existing businesses.

We have proven that caches of value are scattered about the pharmaceutical landscape and are there for the taking. However, Cobrek could not survive as a niche player without aggressive hands-on management by professionals possessing state-of-the art experience in science, medicine, pharmaceuticals and corporate finance. While caches of value are indeed out there, they are often hidden to and overlooked by bigger firms because big companies have to be risk-averse when it comes to challenging established scientific methods and/or regulatory strategies.

Cobrek is a good partner for big (or small) companies because we can afford to (and do) make unconventional thinking a corporate priority. Originally, thinking outside the box was a matter of survival. More than once, Cobrek had a choice: either find a means to employ its aggregated talent creatively or else accept failure. Fortunately failure was averted in each case precisely because creativity and persistence happened to be core values held by the individuals involved. Over time, these values became integrated into the core values of the organization itself. We have seen first-hand that success is highly correlated with commitment – e.g., commitment to persevere no matter how bad things look, commitment to one’s goals and to one’s comrades, and commitment to a belief system built on something more meaningful than individual advancement or immediate gratification.

While always a small company in terms of headcount, Cobrek has never limited itself to the pursuit of small opportunities, and it has been successful in mining value from both niche and blockbuster drug categories. Along the way, it has successfully competed with, maneuvered against, and/or entered strategic partnerships with, some of the largest and best drug companies in the world.

PRODUCTS

Cobrek has successfully developed significant products in both the proprietary and generic drug categories. Among the more notable of these are: Uprima (apomorphine HCl), a proprietary compound targeting erectile dysfunction (and licensed to TAP); and a novel form of paroxetine HCl (Paxil) which was invented by Pentech Pharmaceuticals, the predecessor to Cobrek. Total revenues in the markets targeted by these products exceeded $3 billion at the time of their filings. In the case of Paxil, the validity of Pentech’s technology ultimately led the innovator to authorize Pentech and its marketing partner as the exclusive authorized distributors of generic Paxil, generating approximately $200 million in net revenues between 2003 and 2007.

Cobrek is currently pursuing multi-product strategies in a number of major market segments: most immediately, dermal foams and chronic kidney disease (“CKD”). At least seven products are under various stages of development. Three products are filed with the FDA and under review, and three more are expected in the near future. Major corporate partners are on board for all of these products. Revenues in the targeted markets currently are between $2 and $3 billion. Unfortunately, until the products have been approved by the FDA and have entered the markets, for competitive reasons we cannot describe them in detail here .