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  Market  
     
  Intec is uniquely poised to provide a solution to a critical unmet need in the pharmaceutical industry with its proprietary gastric-retentive drug delivery platform. Specifically, Intec is positioned to penetrate two important market segments: the market for narrow absorption window drugs and for local treatment of gastrointestinal conditions, such as peptic ulcer disease. Additional potential markets include the vitamin and supplement and veterinary drug delivery.

Despite advances made in drug delivery technologies, current oral drug administration methods have only limited use for a variety of important drugs with distinct absorption characteristics. A "narrow absorption window" characterizes drugs that are selectively absorbed by specific carriers that exist only in the upper part of the small intestine. These specific carriers do not exist in the lower parts of the intestine. Drugs that pass this narrow absorption window will not be successfully absorbed, thereby undermining their functionality. In addition, because excessive doses are administered to compensate for the narrow absorption window, patients who must take these oral compounds suffer from a plethora of adverse side effects.

For many drugs, especially antibiotics, an efficient gastric retention system would be useful. It would delay gastric emptying and release the drug at a slower and constant rate, thereby enabling enhanced absorption and, consequently, better outcomes.

Intec has identified a pipeline of market-leading drugs whose efficacy and compliance could be improved substantially with the application of its controlled-release GRDF platform. This would deliver higher price performance and increased sales. Total sales of the drugs in this pipeline totaled approximately $7 billion in 2000.
     
A better chance for new drug therapies  
  Because of the problem posed by the narrow absorption window, development on many promising drug candidates is delayed or even halted completely. These drug candidates that experience low therapeutic profile and marketability, and whose development is suspended in the pre-clinical or clinical trial stage, will benefit greatly from Intec’s innovative platform, offering a potentially profitable opportunity to resume R&D, achieve FDA approval and advance toward full commercialization.  
     
Gaining competitive edge  
  Intec’s innovative platform can offer a product a competitive edge since it results in a more stable plasma drug concentration and therefore can improve the efficacy and safety profile of the drug. The drug levels remain within the therapeutic window and do not experience the peaks and troughs seen with frequent oral dosing. If a product can offer a significant improvement over the competition, then the competitive edge gained can translate into strong drug sales.
 
     
Challenging the non-compliance problem  
  Non-compliance costs the healthcare industry billions of dollars a year. If a drug can be formulated into a once-daily tablet versus a multi dose daily therapy, then there is a significantly higher chance that patients will follow the dosing regimen, leading to an improved treatment outcome.
 
     
Keeping up with the competition  
  Pharmaceutical companies need to maintain equality with the competition. In several indication markets, for example, once-daily dosing schedule is the gold standard, and any new product reaching the market with a more frequent dosing schedule is at a significant disadvantage. Therefore, the GRDF can keep the pharmaceutical company that develops drug for those indications, up with the competition.  
     
Extending the patents on ethical drugs  
  An innovative delivery form of an existing molecule can virtually extend patent-life of an existing ethical drug. Intec's GRDF platform is a new drug delivery method that meets the prerequisite of offering a real benefits vis-a-vis existing methods, such as once a day dosage versus three times daily dosage. This offers a real competitive advantage over other similar generic drugs and can extend patent life.  
     
Local therapy for gastrointestinal conditions  
  Intec’s GRDF platform offers an excellent delivery vehicle for local therapy and absorption for gastrointestinal conditions, such as peptic ulcer disease. About 20 million Americans develop at least one ulcer during their lifetime. Each year, ulcers affect about 4 million people in the U.S. alone. Over 40,000 people have surgery due to persistent symptoms or problems from ulcers and an estimated 6,000 people die of ulcer-related complications. Approximately two-thirds of the world's population is infected with H. pylori, the bacterial agent responsible for peptic ulcer disease. H. pylori peptic ulcers are currently treated with a triple therapy to kill the bacteria and another drug to reduce stomach acid and protect the stomach lining. The two-week triple therapy reduces ulcer symptoms, kills the bacteria, and prevents ulcer recurrence in over ninety percent of patients.

Many patients find this triple therapy complicated because it involves taking as many as 20 pills daily. Furthermore, the antibiotics used in triple therapy may cause mild side effects such as nausea, vomiting, diarrhea, dark stools, metallic taste in the mouth, dizziness, headache, and yeast infections in women. The GRDF platform would make it possible to deliver localized treatment to the affected area, while simultaneously reducing the number of daily doses. With efficacy maintained, patient compliance would increase significantly, offering an all around superior treatment modality.