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'''Mannatech, Incorporated''', is a multinational firm engaged in ], research, development, and distribution of glyconutrients, the company's name for blends of sugars. It has been subject to a Texas State Attorney lawsuit over false and misleading advertising, and no scientific evidence exists to back its claims about its products. Its stock is traded on the ] exchange. 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 South Africa. In 2006, ''Forbes'' magazine named Mannatech the #5 company on its annual list of the "200 Best Small Companies." | '''Mannatech, Incorporated''', is a multinational firm engaged in ], research, development, and distribution of glyconutrients, the company's name for blends of sugars. It has been subject to a Texas State Attorney lawsuit over false and misleading advertising, and no scientific evidence exists to back its claims about its products. Its stock is traded on the ] exchange. 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 South Africa. In 2006, ''Forbes'' magazine named Mannatech the #5 company on its annual list of the "200 Best Small Companies." | ||
==Counter Argument== | |||
Some of the information presented on this page about glyconutrients may not be totally accurate. For example, when referring to the inability to digest complex sugars such as galactomannans from Aloe Vera, this is not the mechanism by which galactomannans and other complex glyconutrient sugars are absorbed into the lymphatic system and into the blood stream. These complex sugars are absorbed whole and do not require digestion. The large molecular weights of complex glyconutrient sugars are directly associated with their healing properties: anti inflammatory, anti pathogenic, blood sugar balancing, stem cell growth and directly immune system modulating. Citing opinion based quotes from mainstream, anti alternative health care researchers is not representative of the biological benefit from taking glyconutrient sugars orally or applying them topically. The research already conducted at Carrington Labs and by other independent researchers concerning the effect on immune system cells such as the macrophage, T4 and T8 cells is significant and provides insight into the health benefits from taking glyconutrient sugars orally or through topical application. | |||
A major issue when it comes to the efficacy of glyconutrient sugars has to do with the so called eight essential sugars. In reality, researchers such as Dr. David Wheeler (a Chiropractic Physician from Beaverton, Oregon, USA) dedicated to understanding the role oral supplement glyconutrients play in immune system health have pointed out that there may be only two glyconutrient sugars that have proven efficacy: galactose and mannose from Aloe Vera gel in the form of galactomannans with molecular weights that range form 10,000 to 5,000,000 Daltons and with long branching chains in the upper molecular weight ranges. Much of the research completed with glyconutrient sugars other than galactomannans from Aloe Vera gel is not of the same caliber. In fact, it is the cart before the horse when it comes to the eight essential sugar theory presented by Mannatech because of no independent research or even anecdotal evidence to support such a theory beyond their original formulation of Aloe Vera galactomannans when the product Ambrotose was first introduced as representative of the eight essential sugar theory. In fact, it wasn't until after Ambrotose was first introduced by Mannatech that there was an attempt to conduct clinical research, but unfortunately much of it in house and not up to the standards of third party studies. It is obvious that there is a play on words with the eight essential sugar theory as compared to the eight essential amino acids but with absolutely no scientific support for essential sugars versus essential amino acids involving diet. | |||
There is sufficient evidence to support the health benefits associated with Aloe Vera galactomannans. There is more evidence to support the use of high molecular weight galactomannans for topical application, with United States Food and Drug Administration approval for topical application when it comes to diabetic ulcers, wounds and burns. The intravenous application of the same high molecular weight galactomannans has been approved by the United States Food and Drug e Administration for the treatment of feline leukemia. Animal research is foundational to human research and for the United States Food and Drug Administration to approve galactomannans extracted from Aloe Vera gel for the treatment of feline leukemia reveals the obvious functional health benefits for humans, with functional health claims all that is allowed for dietary supplements and functional food in the United States. As any physician will tell you, the safest route to the blood stream is via oral application versus intravenous or intra muscular, with larger amounts required via the oral route to the blood stream but also with less concern for the form a natural product takes and its cost. | |||
A common tactic is used to discredit alternative remedies and treatments involves pointing out whether or not a complete cycle of research has been complete according the United States Food and Drug Administration guidelines in order to make disease claims. But this rings hollow because there are no funds forthcoming that usually reach into one billion US dollar or more to complete research when it comes to cancer, autoimmune conditions, chronic infectious diseases, neurological conditions and so on. The only money source for this level of disease research and even lesser levels of research that may cost only several million US dollars is for an end product that can be patented and ultimately approved for disease claims. | |||
It is clear there is a fundamental philosophical difference when it comes to opposition to so called natural treatment. Even though the United States Food and Drug Administration has approved high molecular weight galactomannans from Aloe Vera gel for the treatment of diabetic ulcers, wounds and burns, this is an anomaly in relationship to everything else that goes on in medical research. In the case of topical application of Aloe Vera galactomannas for treatment of diseases of the skin it involved one of those rare instances that a patent was allowed for a natural molecule in the form of high molecular weight galactomannans when extracted via alcohol precipitation. | |||
Conclusion: Because there have been numerous clinical studies involving both topical and oral application for Aloe Vera galactomannans, it is clear that there are meaningful health benefits. This goes to the core of the issue at least in part when it comes to this article about glyconutrients and Mannatech, Inc. First, the only glyconutrient sugars with reasonable research proving efficacy involve galactomannans extracted from Aloe Vera gel. Second, the general tendency of this article to discredit the use of galactomannans extracted from Aloe Vera gel is possibly without any real merit. | |||
==Products and scientific evaluation== | ==Products and scientific evaluation== |
Revision as of 10:04, 11 March 2009
Company type | Public (Nasdaq: MTEX) |
---|---|
Industry | Wellness Biotech |
Founded | Coppell, Texas, USA |
Headquarters | 600 S. Royal Lane, Suite 200 Coppell, Texas |
Key people | Sam Caster, Founder Wayne Badovinus, CEO |
Website | Mannatech.com |
Mannatech, Incorporated, is a multinational firm engaged in multi-level marketing, research, development, and distribution of glyconutrients, the company's name for blends of sugars. It has been subject to a Texas State Attorney lawsuit over false and misleading advertising, and no scientific evidence exists to back its claims about its products. Its stock is traded on the NASDAQ exchange. 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 South Africa. In 2006, Forbes magazine named Mannatech the #5 company on its annual list of the "200 Best Small Companies."
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
The body cannot digest Ambrotose, as it lacks the enzymes needed. 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."
Company-funded research
Mannatech's products have not been evaluated for efficacy in treating any illness or curing any disease, although the company states in its fiscal year 2006 SEC filing that it has contracted with several firms for the purpose of product testing. In December 2006, Mannatech renewed its 2002 research agreement, previously renewed in 2004, with St George's Hospital Medical School, in London, United Kingdom 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 member of Mannatech's board of directors since 2002, 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.
Litigation, State Investigation, and ABC Investigation
The company is known for its literature, websites and multilevel marketing with claims of scientific links to cellular glycobiology long disputed by the relevant individual Nobel prize winners. 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" with respect to its products. Mannatech came 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 settled the civil complaint filed by the Texas Attorney General on February 26, 2009 by agreeing to pay $4 million in restitution to clients who purchased products and $2 million to the state to cover its costs in the case. In addition, Mannatech’s former chief executive officer, Samuel Caster, agreed to pay a $1 million civil penalty and will steer clear of any type of leadership position or employment relationship with Mannatech for five years. When discussing the settlement at a news conference, Abbot stated, "Bottom line, this is a warning to the general public: Be wary of phony claims of magic cure-all pills or false hope in a bottle. You could be duped into purchasing something that has no real effect and no real value." Mannatech did not admit wrongdoing; settling was easier than debating Abbott, according to current CEO Wayne Badovinus. "If they do it again, we will ensure they get put out of business," Abbott said.
On March 20, 2008, Mannatech agreed to pay $11.25 million to settle a class-action lawsuit against the company. The lawsuit stated that the company allowed false claims about its supplements, and failed to control its sales agents. As part of the settlement, Mannatech admitted no wrongdoing.
On June 1, 2007, a 20/20 undercover investigation aired. This investigation showed Mannatech's independent contractor sales associates teaching sales recruits how to target Mannatech products to patients 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.
In December, 2008, the parents of an 11 year old girl with a heart infection who had given their child Mannatech, which made her mouth "peeling, black and clogged" rather than seeking medical attention, resulting in lasting brain injury, were convicted of grevious bodily harm and child cruelty.
Mannatech's inception and Sam Caster
Sam Caster, founder and Chairman of the Board of Directors of Mannatech, 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 22, 2007, Sam Caster resigned as CEO of Mannatech. The Wall Street Journal reported: "Mr. Caster suggested his own resignation so he could focus on company marketing, said (Mannatech board member) Mr. (Larry A.) Jobe. Mr. Jobe said the board wasn't displeased with Mr. Caster, but that the lawsuits gave members 'a lot of concern.'"
On October 19, 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.
Sam Caster now is barred by the Attorney General of Texas from serving as a director, officer, or employee of Mannatech for five years. Caster is also barred from taking a role in any other multilevel marketing programs for five years. Despite this, current CEO Wayne Badovinus stated Caster will work as a consultant answering directly to him.
Resources
Citations and footnotes
- "Mannatech, Inc". Mannatech, Inc. Retrieved 2007-07-08.
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(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.
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(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.
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(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." - ^ Avila, Jim (June 1, 2007). "Cure for Your Disease or Empty Promise?". ABCNews Internet Ventures. Retrieved 2007-07-08.
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suggested) (help) - "Dr John Axford BSc, MD, FRCP Profile". Forbes.com. 2007. Retrieved 2007-07-08.
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(help) - "Mannatech, Incorporated: Form 10Q SEC Public Filing". August 8, 2004. Retrieved 2007-07-08.
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(help) - Robbins, Danny (September 10, 2006). "Nobel Prize winners say sites falsely cite research". Star-Telegram.com. Retrieved 2007-07-08.
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(help) - "Lerach Coughlin Announces Class Action Lawsuit Against Mannatech, Inc". August 30, 2005. Retrieved 2007-07-08.
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(help) - ^ Greenberg, Herb (October 27, 2006). "Texas Attorney General probing Mannatech". MarketWatch, Inc. Retrieved 2007-07-08.
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(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.
- "Mannatech Settles with Attorney General". Retrieved 2009-02-26.
- ^ "Coppell-Based Mannatech to Pay Millions to Settle Diet-Supplement Lawsuit". Retrieved 2009-02-26.
- "Mannatech, former CEO settle with state". Retrieved 2009-02-26.
- "Mannatech Settles Class-Action Lawsuit". Retrieved 2008-04-06.
- http://www.theaustralian.news.com.au/story/0,25197,24808795-5006786,00.html
- http://www.news-medical.net/?id=44344
- Brammer, Rhonda (May 9, 2005). "Manna from Texas". Barron's Online / Dow Jones & Company, Inc. Retrieved 2007-07-08.
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(help) Full text available only to Barron's Online subscriber, but reproduction of article is available at Jonathan Crowell, et al. v. Mannatech, Inc. - Sataline S. "Caster Resigns as CEO of Mannatech - WSJ.com". Retrieved 2008-04-06.
- Sataline S. "Mannatech Fires Its Auditor Amid Dispute Over Founder". Retrieved 2008-04-06.