Executive Summary

This study was done to determine the feasibility of setting up an ORO GEOSERVICES and Alternative Herbal Medicine, Stem Cell Research and Development Company which will be named as BIO-GENEX LABORATORIES, INC. in Agusan Del Norte and Cagayan De Oro. The geological services will offer different kinds of geological studies, gold buying/refining services, and a commercial analytical laboratory which will serve the laboratory analytical requirements of the public especially in the Mindanao area, specializing in jatropha oil biodiesel analysis, wastewater testing and mineral/ore analysis. The Herbal Medicine - Stem Cell R&D, on the other hand, is envisioned to research and develop herbal medicines from plants, fruits and herbs that are naturally-growing in the Philippine archipelago to manufacture alternative healing to most illnesses such as arthritis, HIV, tuberculosis, diabetes, heart disease, cancer and many more.

The market for commercial analytical laboratory services is dominated by players who are accredited to ISO/IEC 17025 under BPS' Laboratory Accreditation Scheme (BPSLAS), a certification ensuring conformance with strict management systems and technical standards. The Mindanao Island is seen as a viable area to set up the geological services industry, considering the expected growth of mining industry at an average of 12% annually from 2009~2011, according to the Medium term Philippine Development Plan. As the small-scale gold mining market is expected to grow substantially, gold buying and refining in the Mindanao area alone can have an estimated income of Php10M (about $480,000.00 USD) annually.

There is also a growing market for wastewater/effluent testing as a result of the requirements set forth under R.A. 9275, i.e. Clean Water Act, which stipulates quarterly testing for enterprises discharging effluents in the waterways. In addition, there is also a market for other analytical services such as Biodiesel Jatropha Oil, Virgin Coconut Oil Analysis and Geological Testing, i.e. geological surveys, mining explorations, etc. The wastewater testing market in Cagayan de Oro City alone is conservatively estimated at PhP 2 Million annually, while the market for other chemical/metallurgical tests is worth at least PhP 1 Million per year.

The proposed marketing strategy covers the products/services outlined above, with pricing for commercial analytical laboratory testing and for herbal medicine R&D is to build a visible presence through both herbal research and cultivating partnerships with the government and private sector. On the other hand, as all gold produced from small-scale mining activities may only be sold to the Bangko Sentral ng Pilipinas, (Central bank of the Philippines) pricing is based on spot market commodity prices. The laboratory facility will be set-up in Cagayan de Oro, where customers will initially have to bring their samples but eventually, samples will be picked up at their premises at a premium. Promotional activities cover: setup of big billboard in front of laboratory indicating services offered, setup of Oro Geoservices and Bio-Genex website, participation in trade shows/fairs for industries generating substantial amounts of effluent, making cold calls to potential clients such as technical personnel in industries, membership in associations to widen network, and advertisements in industry or trade-related and healthcare publications to promote system of evaluation for plants that will be used for herbal research.

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