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2010 Letter to Stockholders

Dear Fellow Stockholders:

Frank Adell - CEO

The perfect economic storm of 2008, which has left the most extraordinary and challenging time in recent history for business in the US and globally, is hopefully now behind us. The aftermath has presented extraordinary challenges both for companies and investors. The worlds of business, finance and consumers have endured a colossal loss of wealth, the political, economic and, social impact of which will continue to resonate across the fabric of our industries and our lives for years or even decades to come. Many industries were wiped out and many downsized, and those who survived find themselves in new world called “the new normal” of high deficits, high unemployment and high real estate foreclosures. Indeed these circumstances have left us with once-in-a-lifetime challenges ahead.


Despite these rough times you, the Stockholders, did not waiver and continued your support for PKC. Reciprocally, as your CEO, I am pleased and confident to present you with the PKC audit and financial report for the period August 14, 2006 through December 31, 2009. I am equally excited to report to you a battery of major milestones that PKC achieved during proceeding months of 2010.


Among these milestones is the expansion of the PKC IP portfolio collection from fourteen to twenty major patent applications. To date the U.S. Patent and Trade Office has issued the first three patents that PKC filed in 2003. We have also received notices that the two patents that cover the IP related to the Metronomic Biofeedback Pump (MBP) have been granted issuance and will be issued after October of this year.


Our product goals require breakthrough innovation. To lead innovation in introducing our smart devices, we’ve made some critical investment strategies in research and development, particularly in nanotechnology. Our first product using a nanotechnology application is a smart biological microprocessor that will enable detection of early stage cancers. This project, like all the research and development at PKC, is focused on increasing the longevity of patients, enhancing their quality of life while reducing healthcare costs.


PKC’s first product, the MBP, has been through four stages of miniaturization and is now ready for animal studies. During the next six months PKC intends to conduct a series of animal studies covering several disease models, including leptomeningeal carcinomatosis and ovarian and pancreatic cancer. These studies will be conducted in several major institutions, including USC, Cedars Sinai Medical Center, New York University and UC San Francisco.


We anticipate having the data from these animal studies ready for submission by Q1 2011. Pending successful results from these animal studies, we plan to commence our first phase human trials in Q2 2011. We are entering exciting times as we approach human trials and are confident that this trajectory will reward our Stockholders with an ever-increasing value in their investment.


These economic times present risks as well as opportunities. There are many diseases that medical science has not been able to significantly ameliorate, and there are many who suffer from terminal disease. PKC is poised to present solutions by combining advanced technologies and harvesting this combination to develop the next generation of smart medical devices. We believe these devices will open new markets for the pharmaceutical industry. Our products are intended to increase the efficacy of many drugs while in the process reducing side effects to patients. With continued innovation and hard work, I am convinced that we will reap the rewards. I encourage those of you who can, to join us for our Annual Meeting of Stockholders at our corporate offices on October 15, 2010 at 11:00 am.


Once again, I appreciate the steadfast support and trust of our Stockholders in these challenging times.



Frank Adell

Chief Executive Officer

September 15, 2010

  main: 310.641.2700 fax: 310.641.2702 6053 W Century Blvd, Suite 1000, Los Angeles, CA 90045-6400 © Pharmaco Kinesis Corp.