the next great thing is already here, page-6

Weak pipelines and diversification strategies to counter the threat of generic competition are driving life sciences M&A activity. According to Thomson Reuters, pharmaceutical and biotechnology transactions totaled $103.9 billion in 2011, up from $99.4 billion the previous year. More M&A activity is anticipated as companies face difficulty developing innovative products and seek to replenish their pipelines,12 consolidate their core businesses, and access new areas of growth.

Large pharmaceutical companies are acquiring cash-strapped biotech firms or entering into new collaborative ventures and alliances to diversify their pipelines with high-margin biologics, which are less exposed to competition compared to prescription drugs. Pharma companies also are showing interest in medical device and technology companies due to higher margins and shorter product development time. Endo Health Solutions’ acquisition of American Medical Systems for $2.9 billion in 2011 is one example of this trend. As hospitals continue to cut costs, they are forcing companies to offer devices at reduced prices, driving the need for companies to consolidate. In addition, medical device companies are evaluating acquisitions of small emerging technology companies to help drive growth.

As the saying goes, "Everything has its price" however I have never really subscibed to the idea of OBJ Limited becoming a take-over target by Big Pharma anytime soon, based on a number of factors, none more so important than the company's long term development strategy which incorporates management's foreseeable technology licensing plans in multiple product categories across a broad range of markets - Field-of-use patent applications...

"The majority of OBJ’s potential partners, including the announced relationships with GSK, 3M, [P&G] and other Pharmacuetical and FMCG companies, have widely diversified product portfolios across multiple product categories and sectors. The potential for OBJ’s technology platforms to add value and product innovations across multiple product categories, multiple brands and in a wider range of markets has increased the appeal of the Company as a long term technology partner. The majority of current partnering discussions involve the adoption of the OBJ technology on a corporate platform, rather than a product by product basis."

As posted in OBJ - A Qualitative Analysis 2013...

Patent applications should be organized and drafted with a long-term objective that carefully considers the multiple possibilities, and opportunities, of field-of-use licensing. This is particularly the case in the pharmaceutical, biochemical, and chemical disciplines, as inventions can have multiple applications that are sometimes impossible to foresee. Technology managers must, therefore, focus strategically, not only on the basic idea of an invention but broadly, in order to consider the various ways such an invention might be put into more widespread and more profitable use. Therefore, the more details, examples and alternatives that are thought through and then disclosed in the patent application, the greater the opportunity for future divisional or continuation applications, as well as future claims that can be exclusively (field-of-use) licensed. By making all of the institution’s licenses, in effect, field-of-use licenses, the technology manager retains the ability to take a possible future use and license it to someone else, maximizing the benefits of the inventions and generating higher royalties for the institution. - Source - IP Handbook

2010
"Over the reporting period, the Company has expanded its Intellectual Property and Patent portfolios with the lodgement of seven new "Field of Use" patent applications covering the commercial areas of interest to OBJ's partner companies and the progression of its foundation patents through to examination in both the USA and Europe. These IP programs are designed to provide broad exclusivity across key markets and to allow efficient and effective licensing across key market sectors."

2011
"Over the period, the Company has undertaken significant expansion to its IP and Patent portfolios with the lodgement of 6 additional "Field of Use" patent applications covering the major commercial areas of interest to OBJ's partner companies and the progression of its foundation patents through to final examination in both the USA and Europe. These programs are designed to provide OBJ with broad exclusivity across key markets and to allow efficient and effective licensing across key market sectors.

2012
"There is mounting international pressure in the pharmaceutical sector to control the dose of topical products, especially those containing non-steroid anti inflammatory compounds. As these drugs are a good target for our magnetic micro-array technologies, the Company moved to develop and file patents for a number of new enhanced delivery measured dose devices. Two such product groups are under development and the Company has received strong interests from its current partners."

2012
"The Company has been working with the University of Queensland and in particular Dr Tarl Prow in the development of enhancing micro-needle performance with the addition of OBJ’s ETP magnetic technology. OBJ’s ETP technology, when integrated into a traditional micro needle delivery system, showed substantially greater drug delivery than micro-needles alone. The resulting technology was the subject of a recent patent application and the results of that work were presented at the PPP Drug delivery Conference in France early in the month by OBJ Director, Dr Chris Quirk."

"Dermaportation is a Drug Delivery technology that provides an unprecedented level of dermal permeability control. The technology is powerful, yet gentle and represents the first of a new generation of bio-communication delivery systems. As such the market applications are enormous and the value of the technology to drug companies, medical professionals and patients/consumers will be considerable."
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Let's look at this from a different angle - or just one of the many indicators, which I believe favors a very positive outlook for the boards three part development plan

Call it a case of optimism tempered by reality: Following years of growth and favorable market trends, the global life sciences industry now finds itself facing a challenging “new normal.” A changing health care landscape, expiring patents and generic competition, pricing pressures, heightened regulatory scrutiny, expansion into emerging markets, increasing alliances and acquisitions, and a persistent economic slowdown are prompting global life sciences companies to adopt new business models designed to counter slowing sales growth and declining profitability, deliver better patient outcomes at lower cost, and position them for success in 2013 and beyond.

Concurrently, life sciences companies are spending fewer resources (time, money and personnel) on developing new drugs. Company profitability is declining: Higher R&D and regulatory expenses, in addition to pricing pressures, are lowering margins. Globally, the Big Pharma operating margin for 2013 is forecast at ~20 percent, down from more than 24 percent from 2003 to 2009. This decline means that there are increasingly fewer dollars available
for reinvestment in the business — just as regulatory and operational requirements are calling for major infrastructure investments, especially for regulatory reporting, drug safety systems, electronic pedigrees, “big data” analytics, commercial brand strategy, supply chain, M&A, and global business services. The decline also places significant pressure on making the right choices in R&D, especially late-stage clinical development to drive insights for product adoption, not just approval. - Optimism tempered by reality in a “new normal”

"Optimism tempered by reality" - I like that, but then again some of us also like, "conspiracy theories" so let me offer some puzzle pieces to what I'll just refer to as an, optimistic conspiracy...

Reality, Myth, or Metaphor? - you decide!

Q: We are well aware of the patent cliff dilema, and the enormous cost/risk benefit associated to new drug development with the popular rise of generic competition, but at a time when gaining the trust of the consumer has never been so important what else is increasingly recognised as one of the largest underlying threats to Big Pharma's bottom line when profitability is already fast declining, and what strategies have the world's most powerful government controlling lobbyists adopted to 'control' this threat?

Once again, this only adds more emphasis to the importance of OBJ collaborating with the 'Global Leaders', or as some may refer them to as the real, 'Globalist Planners'.

The global market for vitamins and minerals has grown by 12% at constant exchange rates in the past five years. It is now the largest and fastest-growing subset of an overall global consumer health-care market worth nearly $200 billion - source

December 2010
In accordance with Codex Alimentarius, FDA guidelines will treat nutrients as toxins
What the FDA's entire NDI proposal boils down to is the agency's capitulation to Codex Alimentarius provisions that treat nutrients like toxins. As we have written about on numerous occasions, US harmonization with Codex's Guidelines for Vitamin and Mineral Food Supplements has been the goal of globalist planners for years, and the FDA has cooperated nicely with this agenda via S. 510, the Food Safety Modernization Act ((source)), and now the NDI application process.

Conspiracy theory or not - Who exactly are these, "globalist planners" who it's alleged the FDA have been "cooperating nicely with for years..."

February 2012
Pfizer Acquires Leading Vitamin Supplements Company
NEW YORK - Pfizer Inc. today announced the acquisition of privately-held Alacer Corp., the maker and distributor of Emergen-C products, the largest selling branded Vitamin C line in the United States.

Based in Foothill Ranch, California, Alacer is well-known among health-conscious consumers as a provider of Vitamin C supplement products. It produces almost 500 million packets of Emergen-C annually, and its products are sold in health food stores, supermarkets, drug stores, mass merchandisers and club stores nationwide.

“We are very pleased that the Emergen-C family of products will become part of Pfizer’s portfolio. We expect that our global network and deep expertise in dietary supplements combined with our desire to provide consumers with high-quality products will make Emergen-C more accessible than it has ever been before,” said Paul Sturman, President of Pfizer Consumer Healthcare. “Emergen-C products add to and greatly complement our market-leading dietary supplement portfolio.”

Emergen-C is an effervescent, powdered drink mix vitamin supplement that supports active and healthy lifestyles. Available in more than 15 flavors, each of the seven lines of Emergen-C is packed with nutrients, Vitamins C and B, electrolytes and antioxidants. Specialty formulations include Emergen-C Kidz® designed specifically for children, and specialty formulas that support specific health needs such as joint health and heart health

“Today marks the beginning of an exciting new chapter for Alacer and the Emergen-C health and wellness brand. It is a unique opportunity to join one of the world’s top performing consumer health care businesses,” said Ron Fugate, President and CEO of Alacer. “By becoming part of Pfizer, we can access the resources and reach that will help us support healthy, active lifestyles across the globe.”

Financial terms of the transaction were not disclosed. Lazard acted as financial advisor to Pfizer, and DLA Piper LLP (U.S.) acted as legal advisor to Pfizer, in connection with the acquisition. Houlihan Lokey acted as financial advisor to the owners of Alacer Corp., and Rutan & Tucker LLP acted as legal advisor to the owners of Alacer Corp., in connection with the transaction.

Pfizer Inc.: Working together for a healthier world™
At Pfizer, we apply science and our global resources to improve health and well-being at every stage of life. We strive to set the standard for quality, safety and value in the discovery, development and manufacturing of medicines for people and animals. Our diversified global health care portfolio includes human and animal biologic and small molecule medicines and vaccines, as well as nutritional products and many of the world’s best- known consumer products. Every day, Pfizer colleagues work across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases of our time. - Pfizer Acquires Alacer Corp - a Leading Vitamin Supplements Company

March 2012
A surprise purchase - Procter & Gamble?
But why would P&G — a company that has little experience in the supplement sector — buy New Chapter now? This is one question now hovering over news of the deal.
As Schulick told the Reformer, he wasn't looking to sell the company when he began searching 18 months ago for additional funding to help fuel New Chapter's growth. And yet, once P&G made its undisclosed offer to buy New Chapter, Schulick said he knew the time was right to sell because doing so would enable New Chapter to accelerate its global expansion plans, add more "marketing muscle" and more confidently navigate the increasingly murky landscape of supplement regulation.

"Procter & Gamble shares our commitment and fascination with innovation and has the resources to dramatically boost our research and development of new products," Schulick wrote. "We will even enrich our philanthropic and sustainability platforms by joining with a force deeply committed to humanitarian efforts."

According to Elizabeth Bankowski, chair of the board of New Chapter, P&G was not the only company to bid for New Chapter but it won out because of the ownership model built into the bid. "It's a model we really hoped to have," Bankowski told newhope360. "It's very much the Stonyfield model [in that New Chapter will remain] a standalone, wholly-owned subsidiary. The only job change is Procter & Gamble is sending in a CEO. We're still employees of New Chapter."

Given the changing supplement market, P&G chose wisely in New Chapter, which has a strong reputation for quality and has enjoyed a longtime leadership position within the burgeoning world of organic and whole food supplements. As consumer interest shifts from engineered to more naturally derived nutrition solutions, whole food supplements —particularly organic whole food supplements — are becoming much more popular and, according to NBJ, are a hub of sales growth within the broader supplement market. - A Surprise Purchase

December 2012
Consumer, Drug Firms Vie in Vitamins
A recent bidding war between Reckitt Benckiser PLC and Bayer AG for vitamin maker Schiff Nutrition International Inc. could be a taste of things to come, as consumer-products companies and drug makers jostle to grab a slice of a growing market for vitamins and health supplements. According to Euromonitor, the global market for vitamins and minerals was worth $84 billion in 2011 and has grown by 12% at constant exchange rates in the past five years. It is the largest and fastest-growing subset of an overall global consumer health-care market worth nearly $200 billion, Euromonitor says. Consumer, Drug Firms Vie in Vitamins

December 2012
GlaxoSmithKline Place Big Bets on the Growing Market for Vitamins and Health Supplements
Reckitt, Nestle, and GlaxoSmithKline are making big bets on a growing trend for consumers to spend more money on managing their own health. Reckitt is buying vitamin maker Schiff Nutrition for $1.4 billion. It has also acquired the over-the-counter medicines business of the U.K.’s Boots Inc. for $3 billion. GSK has taken great control over the company’s subsidiaries in India and Nigeria. And Unilever bought Pfizer’s infant-nutrition business and announced a joint venture with Hutchison China Meditech to launch nutritional products based on Chinese medicine.

The global market for vitamins and minerals was worth $84 billion in 2011, and has grown by 12 percent in the past five years. It is the largest and fastest-growing subset of an overall global consumer health care market worth $200 billion. The fastest-growing categories of new products include vitamins B and D, calcium, fish oils, and "probiotics" (nutritional bacteria).

Question: Will permanent magnets, electromagnets, sound, and other vibratory elements unleash a whole new era of 'medicine' that puts chemical medicine (drugs) in the Dark Ages?

I think so!