Columbia River Resources Inc., through its recently acquired subsidiary, Traxxec Ltd., focuses on the development of Radio Frequency Identification (RFID) products and their supportive systems and applications. Traxxec Ltd., a UK registered company, has recently completed a 15-year license agreement to contract its global patent source RFID tagging technology exclusively to Rexam Pharma, London, UK., generating $10 Million in royalty payments during 2007-2009 period. Rexam Pharma has an annual buying capacity of 20,000,000 bottles. The market sector for pharmaceutical product is in excess of $20 billion U.S. dollars, and bottles represent 30 percent of the available market per annum. CRVR is based in Vancouver, BC, Canada and was incorporated in Nevada in 1997.
Synergizing Solutions
Traxxec Ltd., CRVR’s wholly owned subsidiary, has become the sole focus of CRVC’s operational activity and the company’s new business model. The new strategy was triggered by the creation of a healthcare division within Rexam PLC, a key Traxxec partner and now the world’s largest pharma bottle supplier, following its acquisition last year of the plastics packaging division of North America’s largest manufacturer of glass, Owens Illinois, Inc.
Traxxec’s recently signed 15-year RFID solution agreement with Rexam ideally positions CRVR to deliver patent RFID solutions across its Company business model of newly combined European and U.S. organizations, vastly increasing the available and lucrative market opportunities with revenues from both product sales and system integrations as well as revenues from any further development products. CRVR’s CEO Amy Scopes describes the uniquely combined synergy as “Offering a strong and realistic opportunity for our shareholders.”
The Day for RFID Target Market
Radio-frequency identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using RFID tags or transponders that can be applied to or incorporated into a product, animal, or person for the purpose of identification using radiowaves. Some tags can be read from several meters away and beyond the line of sight of the reader. A technology called chipless RFID allows for tags to be printed directly onto surfaces at a lower cost than the two part IC chip and antenna traditional tags. Today, a significant thrust in RFID use is in enterprise supply chain management, improving the efficiency of inventory tracking and management. Wal-Mart, Target, and Procter and Gamble are major industries experiencing success with the technology.
Several states (Florida, California, Nevada, Virginia) are testing e-pedigree and or RFID models to track to combat counterfeit or adulterated prescription drugs. The FDA has been empowered (FDA Administration Amendment Act 2007) to develop by March, 2010, “standards and identify and validate effective technologies for the purpose of securing the drug supply chain against counterfeit, diverted, subpotent, substandard, adulterated, misbranded, or expired drugs.”
“The day will come when RFID tags are not applied like a label, but are integrated into the material of packaging….The benefits to that is that it will cost less than sticking a label on, and that there is less risk that tags will be damaged, plus, there would be no delay in packaging line speed.” (Pharmaceutical & Medical Packaging News, April 2005)
CVRV’s target market is RFID enabled pharmaceutical packaging, defined by Companies who operate as manufacturers and/or suppliers of pharmaceutical products to the pharmacy, either retail wholesale or institutional. CVRV promote three significant benefits of Traxxec’s globally patent source RFID in a pre-tagged bottles over and above ‘slap-and-ship’ tagging tactics:
* Pre-tagged bottles virtually eliminate the problem of dead tags (up to 15% for labels)
* Pre-tagging removes the application of tags from the critical path, and the customers process.
* The tag does not take up any space on the bottle, or cover any existing label areas
Offerings such as adhesive labels containing RFID tags partially meet the needs of the customer in tagging their product, however tagging via a label requires a secondary process and purchase of new application equipment, that inevitably results in a reduction in packaging process efficiency, and users have reported a high (15%) failure rate in the RFID tags so applied. A tagged bottle would clearly appeal more directly to the pharmaceutical customers’ needs avoiding secondary processing, process modification and ‘dead’ tag issues.
Negotiation Out-licenses to Major Pharmaceuticals
April 16, 2008, CRVR announced negotiations to develop and supply patent source RFID tagging technologies to GlaxoSmithKline and Catalent through its new clinical trials sales division. GlaxoSmithKline is one of the world’s leading pharmaceutical and healthcare companies and Catalent Pharma Solutions is the leading provider of advanced technologies, and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer healthcare companies in nearly 100 countries. In addition, Traxxec is in talks with a French-based global leader in the beauty Industry. All three companies are interested in evaluating the effectiveness of RFID in their supply chain.
In a short period of time Traxxec has open and delivered two operational sales channels, and continues to expand its market penetration. The new beauty client represents a potential new market sector which Traxxec is keen to exploit. CEO Amy Scopes comments, “The board is pleased that the company is now delivering revenue through two sales channels and looks forward to announcing completion of the final stage of the company development, along with positive sales stories. We believe that the company, along with key partner Rexam, is ideally placed to commercially deliver on the market potential of RFID packaging solutions.”
StockGuru.com is owned and operated by Pentony Enterprises LLC, 9555 Lebanon Road, Suite 103, Frisco, Texas 75035. Telephone: (469) 252-3030. Web: StockGuru.com. Email: Publisher@stockguru.com. Disclosure: Pentony Enterprises LLC has been compensated 500,000 shares from a non-controlling third party for profile coverage. Pentony Enterprises LLC is not a registered investment adviser or broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk. It is the policy of Pentony Enterprises LLC to sell all shares of this and any company featured. Anyone considering any company we feature in consideration for free trading shares should consider this.