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| '''Mannatech, Incorporated''', is a multinational firm engaged in |
'''Mannatech, Incorporated''', is a multinational firm engaged in research, and direct marketing distribution of ]s. Its stock is traded on the ] exchange and as of ], ] has a market capitalization of about US $280 million, classifying it as a ] corporation. Mannatech was founded in ] by Sam Caster and is headquartered in ].<ref>{{cite web | last = | first = | authorlink = | coauthors = | title = Mannatech, Inc. | work = | publisher = Mannatech, Inc. | date = | url = http://www.mannatech.com/AboutMannatech/Default.aspx | format = | doi = | accessdate = 2007-07-08}}</ref> It operates in the United States, Canada, Australia, the United Kingdom, Japan, New Zealand, Republic of Korea, Taiwan, Denmark, Germany and Mexico. In 2006 and 2007, ''Forbes'' magazine named Mannatech the #5 company on its annual list of the "200 Best Small Companies."<ref>{{cite news | last = | first = | coauthors = | title = The 200 Best Small Companies: #5 Mannatech | work = | pages = | language = | publisher = Forbes.com | date = October 12, 2006 | url = http://www.forbes.com/lists/2006/23/biz_06200best_Mannatech_9Q1M.html | accessdate = 2007-07-08}}</ref> A ] undercover investigation aired on June 1, 2007 interviewed a woman who had used Mannatech's supplements to help her with a major health challenge. In this documentary, they interviewed this young woman who reported that she was pleased with the her results from her consumption of the nutrients. The film crew also interviewed the CEO at the time, Mr. Sam Caster, as well as going 'under cover'to Mannatech product presentations. From their point of view, they assessed that sales associates were teaching sales recruits how to present Mannatech products to those with specific illnesses in a manner that purportedly does not violate ] ], including ] ] regulations, by avoiding direct claims that the products cure any particular diseases.<ref name=twenty>{{cite news | last = Avila | first = Jim | coauthors = Geoff Martz, and Andrew Paparella | title = Cure for Your Disease or Empty Promise? | work = | pages = | language = | publisher = ABCNews Internet Ventures | date = June 1, 2007 | url = http://abcnews.go.com/2020/story?id=3228488 | accessdate = 2007-07-08}}</ref> The conclusion to this documentary specified that the film crew would follow the progress and continue to update the results of the young woman interviewed, though there has been no further documentation of her results by 20/20. | ||
| ==Products and scientific evaluation== | ==Products and scientific evaluation== | ||
Revision as of 06:52, 20 December 2007
Mannatech, Incorporated, is a multinational firm engaged in research, and direct marketing distribution of glyconutrients. Its stock is traded on the NASDAQ exchange and as of July, 2007 has a market capitalization of about US $280 million, classifying it as a small-cap corporation. Mannatech was founded in 1994 by Sam Caster and is headquartered in Coppell, Texas. It operates in the United States, Canada, Australia, the United Kingdom, Japan, New Zealand, Republic of Korea, Taiwan, Denmark, Germany and Mexico. In 2006 and 2007, Forbes magazine named Mannatech the #5 company on its annual list of the "200 Best Small Companies." A 20/20 undercover investigation aired on June 1, 2007 interviewed a woman who had used Mannatech's supplements to help her with a major health challenge. In this documentary, they interviewed this young woman who reported that she was pleased with the her results from her consumption of the nutrients. The film crew also interviewed the CEO at the time, Mr. Sam Caster, as well as going 'under cover'to Mannatech product presentations. From their point of view, they assessed that sales associates were teaching sales recruits how to present Mannatech products to those with specific illnesses in a manner that purportedly does not violate U.S. federal law, including U.S. Food and Drug Administration regulations, by avoiding direct claims that the products cure any particular diseases. The conclusion to this documentary specified that the film crew would follow the progress and continue to update the results of the young woman interviewed, though there has been no further documentation of her results by 20/20.
Products and scientific evaluation
Products
As of December 31, 2006, the company offered 24 nutritional products, three topical products, seven different skin care products, and a weight-management system consisting of four different products. Mannatech is most widely known for Ambrotose, "a glyconutritional dietary supplement ingredient consisting of a blend of monosaccharides, or sugar molecules," its lead product. In an SEC filing, the company stated that its products "are formulated with predominately naturally-occurring, plant-derived, carbohydrate-based ingredients that are designed to use nutrients working through normal physiology to help achieve and maintain optimal health and wellness, rather than developing synthetic, carbohydrate-based products, as other companies are doing."
Independent research
Some researchers doubt that Ambrotose confers any health benefits, because the body lacks the enzymes needed to break down the plant fibers contained within Ambrotose. Prominent glycobiologist Dr. Ronald Schnarr of Johns Hopkins told 20/20 in a June 1, 2007 interview, "All of the sugar building blocks that we need in our body are made from the most common foods we eat." Dr. Hudson Freeze, another leading glycobiologist said this about glyconutrients: "There are authentic, scientific studies that have looked at people drinking these kinds of materials, and it doesn't really do anything except increase flatulence." However, this view is not shared by all. The Scripps Institute of La Jolla, California, awarded Mannatech first place prize for its research in regard to the assimilation of monosaccarides in the lining of the intestinal tract, thus verifying the bio-availability of these same substances.
Company-funded research
Mannatech's products replace nutritional deficiencies and therefore are not for the purpose of treating any illness or curing any disease. The company states in its fiscal year 2006 SEC filing that it has contracted with several firms for the purpose of various product testings. In June 2006, Mannatech signed a research agreement with Hyperion Biotechnology, Inc., in which Mannatech agreed to fund a research study related to Ambrotose. Mannatech collaborated with Hyperion Biotechnology, Inc., of San Antonioto to determine if GI bacteria could break down stabilized aloe vera gel, larcharabinogalactan and Advanced Ambrotose. Ambrotose complex and Advanced Ambrotose, Mannatech's flagship glyconutritional supplements, contain proprietary blends of plant-derived saccharides, including aloe vera gel and larch arabinogalactan. This in vitro study assessed how bacteria normally found in the human intestinal tract broke down aloe vera gel, larch arabinogalactan and Advanced Ambrotose. The study concluded that GI bacteria broke down these complex carbohydrates, suggesting that the carbohydrates could also be broken downwithin the GI tract itself. Mannatech's research showed that GI bacteria, indeed, are capable of breaking down these complex carbohydrates. Further research may lead to a better understanding of how complex carbohydrates, once metabolized by thebody, can support the immune system. Mannatech presented its GI bacteria research in a poster that received a first-place award during the 4th annual conference on natural supplements sponsored by the Scripps Center for Integrative Medicine in La Jolla,California. Mannatech's research is scheduled to be published in the Journal of Alternative and Complementary Medicine. (Source of this information PR Newswire via NewsEdge Corporation)
Additionally, in December 2006, Mannatech renewed its 2002 research agreement, previously renewed in 2004, with St. George's Hospital Medical School, in London, England to aid in the funding of a "three-year clinical trial related to dosing and optimization study" on Ambrotose." St. George’s Hospital & Medical School employs Dr. John Axford, a former member of Mannatech's board of directors, who serves as principal investigator in the trial. In addition to benefiting from Mannatech clinical trial funding, Dr. Axford has received financial and stock compensation from Mannatech for consulting and for his duties as a board member and spokesman for the corporation. According to the Wall Street Journal, Mannatech will be publishing some of these results, although the results will not be subject to the peer review process.
Current litigation and state investigation
The company is known for its research and development as well as literature, websites and direct marketing business model. Some of the company reps have made claims of scientific links to the work of Nobel Prize winning scientists in the field of cellular glycobiology. However, these Nobel prize winners are not in any way connected with Mannatech nor do they endorse any research Mannatech undertaken in the development of its product range. A class-action lawsuit was filed against Mannatech in 2005 for alleged violations of the Securities Exchange Act. The plaintiffs allege Mannatech made "materially false and misleading statements" that caused Mannatech's shares to trade at artificially inflated levels during the Class Period. The class action suit is to compensate shareholders who invested for the drop in share price during the Class Period. Class action has been commenced in the United States District Court for the District of New Mexico on behalf of purchasers of Mannatech, Inc. ("Mannatech") (NASDAQ:MTEX) common stock during the period between August 10, 2004 and May 9, 2005 (the "Class Period").
Mannatech is also currently under investigation by the Texas Attorney General for alleged violations of that state's Deceptive Trade Practices Act. In response to these and similar criticisms, Mannatech CEO Sam Caster has offered his view: "We walk the fine line of always stating our case appropriately and always training our people: We're not into the treatment, cure or mitigation of disease. We're into the improvement of quality of life. Now, who can benefit from good nutrition? Sick people, well people, everybody. Everybody benefits from good nutrition."
On July 5, 2007, Texas Attorney General Greg Abbott charged Mannatech, Inc., its owner, Samuel L. Caster, and several related entities, with operating an illegal marketing scheme in violation of state law. A press release stated, "Today’s enforcement action stems from a large-scale investigation by state authorities, who examined Mannatech’s dubious claims about the health benefits of its products."
Mannatech's inception and Sam Caster
CEO Sam Caster has a history of questionable dealings and run-ins with the Texas Attorney General. His first major venture, Eagle Shield, was an insulation product that claimed to utilize technology developed by NASA and could supposedly reduce heating and cooling costs by up to 40%. The Attorney General of Texas concluded that the product did not reduce consumers' bills in the amounts advertised. Caster's second product, the "Electrocat," was sold as a pest control device. The Electrocat reportedly emitted pulsed vibrations that deterred rats, crickets, snakes, ticks, spiders, mosquitoes, and scorpions away from an area. However, in January of 1991, the Attorney General of Texas investigated the product and found that the Electrocat emitted no vibrations whatsoever. The Attorney General declared, "The device is a hoax, and stands on the same scientific footing as a perpetual motion machine." Caster pulled the product off the shelves.
Mr. Caster then started Mannatech in 1994, coinciding with Congress' passage of the Dietary Supplement Health and Education Act of 1994, which made profitable marketing of a wider spectrum of dietary supplements a possibility. Caster's wife Linda later authored and released a book entitled Undeniable Destiny, in which she refers to Mannatech as a "Joseph company," based on Joseph in the Bible, who, as she noted in her book, had a divinely inspired destiny to fulfill.
On August 22nd, 2007, Sam Caster resigned as CEO of Mannatech. The current President and Chief Operating Officer, Terry Presinger, will serve as interim CEO until he retires as planned, in June 2008. The Wall Street Journal reported: "Mr. Caster suggested his own resignation so he could focus on company marketing, said (Mannatech board member) Mr. Jobe. Mr. Jobe said the board wasn't displeased with Mr. Caster, but that the lawsuits gave members 'a lot of concern.'"
On October 19th, 2007, it was reported that Mannatech Inc. had fired Grant Thornton LLP as its auditor after the accounting firm demanded that Mannatech remove Sam Caster from all responsibilities.
Citations and footnotes
- "Mannatech, Inc". Mannatech, Inc. Retrieved 2007-07-08.
{{cite web}}: Cite has empty unknown parameter:|coauthors=(help) - "The 200 Best Small Companies: #5 Mannatech". Forbes.com. October 12, 2006. Retrieved 2007-07-08.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) - ^ Avila, Jim (June 1, 2007). "Cure for Your Disease or Empty Promise?". ABCNews Internet Ventures. Retrieved 2007-07-08.
{{cite news}}: Unknown parameter|coauthors=ignored (|author=suggested) (help) - ^ Mannatech, Incorporated (March 16, 2007). "Form Mannatech, Incorporated: 10K SEC Public Filing for FY 2006". United States Securities and Exchange Commission. Retrieved 2007-07-08.
{{cite journal}}: Cite journal requires|journal=(help) - ^ Sataline, Suzanne (May 11, 2007). "Health Claims by Sales Force Boost Supplement Firm". Wall Street Journal / Dow Jones & Company, Inc. Retrieved 2007-07-08.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) Note that full article is available only to WSJ subscribers. "True Believers: Health Claims by Sales Force Boost Supplement Firm; Mannatech's Products Attract the Gravely Ill; Disclaimers on Labels". "Some researchers say they doubt that Ambrotose offers any health benefits. Hudson Freeze, who studies complex carbohydrates as a professor of glycobiology at the Burnham Institute for Medical Research in La Jolla, Calif., contends the body can't digest Ambrotose because humans lack the enzymes necessary to break down the plant fibers it contains into simple sugars." - "Dr John Axford BSc, MD, FRCP Profile". Forbes.com. 2007. Retrieved 2007-07-08.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) - "Mannatech, Incorporated: Form 10Q SEC Public Filing". August 8, 2004. Retrieved 2007-07-08.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) - Robbins, Danny (September 10, 2006). "Nobel Prize winners say sites falsely cite research". Star-Telegram.com. Retrieved 2007-07-08.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) - "Lerach Coughlin Announces Class Action Lawsuit Against Mannatech, Inc". August 30, 2005. Retrieved 2007-07-08.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) - ^ Greenberg, Herb (October 27, 2006). "Texas Attorney General probing Mannatech". MarketWatch, Inc. Retrieved 2007-07-08.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) - "Texas Attorney General Charges Mannatech with Unlawful, Misleading Sales Practices" (Press release). Texas Attorney General Greg Abbott. July 5, 2007. Retrieved 2007-07-08.
- Brammer, Rhonda (May 9, 2005). "Manna from Texas". Barron's Online / Dow Jones & Company, Inc. Retrieved 2007-07-08.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) Full text available only to Barron's Online subscriber, but reproduction of article is available at Jonathan Crowell, et al. v. Mannatech, Inc.