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Exhibit 1

% Of US Adults
Overweight Obese Severely Obese
(25 ≤ BMI < 30) (30 ≤ BMI < 40) (BMI ≥ 40)
1999 to 2000 34 25.8 4.7
1988 to 1994 33 20.1 2.9
1976 to 1980 31.6 14.4 No Data
* US Adult population was approximately 230 million in 2008

1999-2000
Men (BMI > 25) Women (BMI > 25)
Prevalence (%) Prevalence (%)
Overall 67 62
Age (Years)
20 to 34 58 51.5
35 to 44 67.6 63.6
45 to 54 71.3 64.7
55 to 64 72.5 73.1
65 to 74 77.2 70.1
75 and older 66.4 59.6

2001
Obesity
Education Level Prevalence (%)
Less than High School 27.4
High School 23.2
Some College 21
College 15.7

2001
Income Level Obesity (%)
Less than $25,000 32.5
$25,000-$40,000 31.3
$40,000-$60,000 30.3
More than $60,000 26.8
US Adult
Population
(millions)*
209 2000
185 1990
163 1980
Exhibit 2

Weight Loss Price Comparison Summary

Option Description
Non-prescription, FDA approved weight loss drug for
Alli overweight individuals

OTC drugs Herbal remedy, no FDA approval

Weight Watchers Weight control program and meetings


Diet and weight control program that included
Jenny Craig prepackaged, delivered meals and support

Gym Membership Access to workout facilities

*Alli price comparison included initial starter pack and 90 day supply of pills
OTC drug pricing based off MSRP, however deep discounts were usually available
Weight Watchers price included monthly meeting pass and access and internet tools
Jenny Craig price included membership fees and prepackaged food (replaced ~50% - 75% of the
Average gym membership price included one-time initiation fee of approximately $125
Approximate Retail Price*

$190 for three month supply

$300 for three month supply

$120 for three months


$1000- $1600 for three months
of program (includes food)
$245 for three month
membership and initiation fee

ced ~50% - 75% of the client’s normal food purchases)


ximately $125
Exhibit 3

Option 1 Option 2 Option 3


Retail price $ 75.00 $ 125.00 $ 150.00
Retail gross margin $ 25.00 $ 41.67 $ 50.00
Manufacturer price $ 50.00 $ 83.33 $ 100.00
Variable cost $ 25.20 $ 25.20 $ 25.20
Manufacturer gross margin $ 24.80 $ 58.13 $ 74.80
50% 70% 75%
Year US Population Forecast(US Population) Lower Confidence Bound(US Population)
1980 163
1990 185
2000 209 209 209.00
2010 231 231.741601 230.59

250

200

150

100

50

0
1980 1990 2000
US Popul ation Forecast(US Popul ation)
Lower Confidence Bound(US Popul ation) Upper Confidence Bound(US Popul ati
Upper Confidence Bound(US Population) Column1
22
24
209.00 22
232.90 22

2000 2010
orecast(US Popul ation)
pper Confidence Bound(US Popul ation)
Year US Population Population Increase
1980 163 - Year US Population
1990 185 22
2000 209 24 1980 163
2010 232 23
1990 185

10 year growth in population 23


2000 209
per year population growth 2.3
2008 230
Year Forecasted Population Growth
2008 230 0.010
2009 232 0.010
2010 235 0.010
2011 237 0.010
2012 239 0.010
2013 241

Average popuation growth 1%


% Of US Adults
% of population not healthy Overweight Obese Severely Obese
(25 ≤ BMI < 30) (30 ≤ BMI < 40) (BMI ≥ 40)
- 31.6 14.4 No Data
33.00% 20.10% 2.90%
56%
59% 36% 5%
34.00% 25.80% 4.70%
64.50%
53% 40% 7%
65% 34.26% 26.00% 4.74%
Description Value
Average Population growth 1%
US Overweight Population 34.26%
Population of overweight trying to loose weight 35%
Of which number of people comfortable with drugs 15%
Respondents ready to immediately request a
prescription. 12%
Scenario 3 target population 4.3
% of population captured initially for scenario 1 and 2 10%
% of population captured initially for scenario 3 30%
% of population to buy only 1 supply 28%
% of population to buy 2 supply 60%
% of population to complete the course 12%

Scenario 1

US Overweight Population try to


Year US Forecasted Population
Pouplation loose weight

2009 232 79.59 27.86


2010 235 80.38 28.13
2011 237 81.16 28.41
2012 239 81.95 28.68
2013 241 82.73 28.96

Scenario 2

US Overweight Immediate
Year US Forecasted Population
Pouplation prescription

2009 232 79.59 9.55


2010 235 80.38 9.65
2011 237 81.16 9.74
2012 239 81.95 9.83
2013 241 82.73 9.93

Scenario 3

% of population Population
Year US Forecasted Population
captured captured

2009 4.300 30% 1.290


2010 4.342 35% 1.520
2011 4.384 40% 1.754
2012 4.427 45% 1.992
2013 4.471 50% 2.235
Total Number
of units sold
Forecast Scenario 1 7.878
Scenario 2 18.007
Scenario 3 16.175

Scenario 1

% of Population to
Comfortable to Population Population to Population to
population complete the
use drugs captured buy 1 Supply buy 2 Supply
captured course

4.18 10% 0.42 0.117 0.251 0.050


4.22 15% 0.63 0.177 0.380 0.076
4.26 20% 0.85 0.239 0.511 0.102
4.30 25% 1.08 0.301 0.645 0.129
4.34 30% 1.30 0.365 0.782 0.156

rio 2
% of Population to
Population Population to Population to
population complete the
captured buy 1 Supply buy 2 Supply
captured course
10% 0.96 0.267 0.573 0.115
15% 1.45 0.405 0.868 0.174
20% 1.95 0.545 1.169 0.234
25% 2.46 0.688 1.475 0.295
30% 2.98 0.834 1.787 0.357

Population to
Population to Population to
complete the
buy 1 Supply buy 2 Supply
course
0.361 0.774 0.155
0.426 0.912 0.182
0.491 1.052 0.210
0.558 1.195 0.239
0.626 1.341 0.268
Option 1 Option 2 Option 3
Retail price $ 75.00 $ 125.00 $ 150.00
Retail gross margin $ 25.00 $ 41.67 $ 50.00
Manufacturer price $ 50.00 $ 83.33 $ 100.00
Variable cost $ 25.20 $ 25.20 $ 25.20
Manufacturer gross mar $ 24.80 $ 58.13 $ 74.80

Annual fixed cost $ 1.20


5 year Annual Fixed Cost $ 6.00
Initial Investment
Prelimenary Marketing $ 23.00
R&D $ 400.00
Total Initial Investment $ 423.00
Total fixed cost $ 429.00

Total Number of units Option 1 Revenue Option 2 Revenue Option 3 Revenue


sold
Scenario 1 7.878 393.91 656.48 787.81
Scenario 2 18.007 900.36 1,500.54 1,800.71
Scenario 3 16.175 808.77 1,347.90 1,617.54

Return on Investment Calculations


Option 1 Earnings Option 2 Earning Option 3 Earnings
Scenario 1 189.38 451.96 583.28
Scenario 2 440.58 1,040.76 1,340.93
Scenario 3 395.15 934.28 1,203.92
Option 1 ROI Option 2 ROI Option 3 ROI
Scenario 1 -55% 7% 38%
Scenario 2 4% 146% 217%
Scenario 3 -7% 121% 185%
Variable cost

198.53
453.78
407.62

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