Some interesting news on the “mergers and acquisitions” front:
Hi-Tech Pharmaceuticals, best known around here for their DMAA-based supplements (fat burner HydroxyElite and pre-workout Jack’d Up), has purchased LG Sciences. Not to be confused with the electronics company, LG produces a general yet aggressive range of products targeted at upper-level athletes and bodybuilders.
We haven’t had a chance to go hands-on with LG’s product line for quite some time, but user reviews around the web are generally very positive, with some historical bumps along the way.
Hi-Tech more aggressive than ever
The first piece of big news here is the expansion of Hi-Tech’s product line.
Lately, they’ve mostly been known for their almost single-handed crusade to bring DMAA back to supplements, challenging the FDA on legal grounds while continuing to include it in several of their flagship products. But don’t forget that they’ve also recently acquired Formutech (formerly known as Fahreinheit Nutrition) Sports One, and Innovative Labs.
Not just fat burners
The above acquisitions were taken in order to dominate large areas of the fat burner market – but with LG Sciences, it’s clearly different.
This move elevates them from being the monstrous ephedra and DMAA fat burner company to potentially being one of the top industry heavyweights on the muscle-building / anabolic side of the game too. Unlike the other companies Hi-Tech has purchased recently, LG is mainly about the gains, not the losses.
These moves also signals much confidence in their battles, as you wouldn’t expect so many financial moves from a company who’s about to do battle with the FDA. They are likely able to run them more profitably, since Hi-Tech has such considerable production capacity, or so it seems, given the recent actions of their Founder and CEO, Jared Wheat.
Things seem to be looking up for Hi-Tech, but what does this acquisition have to do with the consumers? It’s all about those DHEA metabolites..
DHEA Metabolite Patents
The most interesting factor here is that Hi-Tech appears to have also purchased the right to use the full range of patents registered to LG Sciences head Eric Marchewitz. Marchewitz retains ownership of the several patents, but Hi-Tech can use them in product development.
There’s some very interesting stuff going on in there, specifically their patent relating to the use of DHEA derivatives for burning fat and increasing athletic endurance.
DHEA is a naturally-occurring substance produced by the adrenal glands. It’s been of interest to supplement manufacturers for years now as it’s a known precursor to both testosterone and estrogen.
The theory is that it would be useful as a test booster for those of us who have reached our late 20s and beyond and are now on the natural downward curve of testosterone production. Of course, you’re likely aware of the benefits of increased “T” levels — more energy, better bone and muscle strength, better mood, a stronger immune system and improved sex drive among them.
Evidence from studies (on DHEA) thus far has been weak, however — at least on the fat burning and metabolism elevation front. But studies have also generally been using an extract made from soy or wild yams, and there are serious questions about whether the body can even metabolize it in this form.
Can Hi-Tech get DHEA to seriously work?
That is where we expect Hi-Tech to come in and solve the problem: our bodies assimilate these compounds far too quickly, and the vast majority of them don’t make it into the bloodstream.
But as we’re seeing with their work on Gaspari Nutrition’s new Nova-X testosterone booster, Hi-Tech clearly has some tricks up their sleeve to keep muscle-building ingredients bioavailable far longer. In Nova-X’s case, it’s in the form of Androsterone, and while it’s too new for conclusive research, anecdotal user response to Gaspari’s latest supplement has been great so far.
So if Hi-Tech is now sitting on a patent for a more bioavailable form of DHEA — and they have the production capability to make it happen — that could be enormously huge news to the industry.
Keeping the industry honest?
Thus far their exact plans for the patents and current product lineup are unknown, but they’ve stated that any development will use ethical amounts of these DHEA metabolites for consumer safety, and they will protect these patents too.
This is likely to keep the FDA from crashing the party for the entire industry (in ethical doses, there is less chance of regulatory trouble), while keeping their grip on the IP. Anyone who’s followed Hi-Tech already knows that you probably don’t want to step on any of their patents – they will fight to enforce them.
Of course, this is all pending a whole bunch of testing and development. Interesting possibilities, nonetheless, and we certainly look forward to seeing where Hi-Tech and LG Sciences go from here.
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- “Hi-Tech Pharmaceuticals Acquires LG Sciences Adding to its Premium Line Up of Sports Nutrition Brands”; PR Newswire; August 18, 2015; Retrieved from http://www.prnewswire.com/news-releases/hi-tech-pharmaceuticals-acquires-lg-sciences-adding-to-its-premium-line-up-of-sports-nutrition-brands-300129751.html
- “Hi-Tech Pharmaceuticals Acquires FormuTech Nutrition Adding to its Premier Line Up of Sports Nutrition Brands”; PR Newswire; June 3, 2015; Retrieved from http://www.prnewswire.com/news-releases/hi-tech-pharmaceuticals-acquires-formutech-nutrition-adding-to-its-premier-line-up-of-sports-nutrition-brands-300093175.html
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