half yearly, gsk fim and strategic alliances, page-37

Been digging around today and have come across some interesting finds:

-Back on the 29th of Feb 2008 in the Appendix 4D half yearly report it was announced that there was a formation of a wholly owned subsidiary called OBJ transdermal vaccines Pty Ltd (OBJTV). Dr Ken Donald and Dr Gil Shearer as the directors. OBJ plans to develop its pipeline projects to pre-clinical stage before licensing to a partner for clinical development and commercialisation. I have no idea what has happened to this subsidiary... Think this may have fell through.

Also another interesting find was from the September shareholder update in 2008.

-"The company has spent a considerable time with international pharma's and cosmetic companies in the evaluation of the companies technology. OBJ aims to take advantage of current interest in active delivery platforms that can provide a transdermal solution for drugs going off patent within 4-5years.

Reading back on announcements from 2007-09 OBJ has been working tirelessly to develop and improve their ETP/DP technology. They have however worked extremely closely with the FMCG in research and feasibility tests which i assume will be for a certain drug which will be optimised solely around OBJ's transdermal delivery technology.

This also provided excellent confirmation for me that OBJ and the FMCG are essentially locked in and that a licensing agreement is the most likely outcome from this collaboration dating back to 2006.

From the announcement on the 18th of December 2008-
OBJ prioritises mechanistic study program to investigate and optimise the skin effect of DP and ETG as the result of independent expert recommendations .

"Importantly the outcome of the current mechanistic program to optimise the skin effect of the proprietary DP and ETP magnetic fields is CRITICAL to the SUCCESS of this collaboration. Should the technology achieve its success milestones, this project will provide SIGNIFICANT industry validation of the OBJ delivery platforms".

And then we subsequently receive this announcement on the 8th of February 2010.

"OBJ is pleased to advise that it has received a SOI from the FMCG in regards to its ONGOING product development program utilising OBJ's ETP and DP technologies."

"OBJ is continuing to work with a major healthcare company to develop a product to enhance the delivery of ONE of their key therapeutic agents"

This in essence, IMO means that the research collaboration with the FMCG was successful and that we are drawing closer to the finalisation of that product. Could ths be the reason why the FMCG jumped aboard? Has the industry validated OBJ's technology?

I should jump in now and highlight the significance of that one key therapeutic agent.

Back in 2008 OBJ released an announcement on the 29th of October stating that OBJ has signed a second agreement with the FMCG company. In the announcement it states that:

-"in December 2007, OBJ executed a research collaboration agreement with the sme FMCG company to conduct an initial feasibility to evaluate the use of both the DP and ETP platforms for up to 2 compounds for OTC healthcare applications. The FMCG company recently advised OBJ that it wished to conduct additional studies to further evaluate the magnetic delivery platforms for 1 of he previously test OTC compounds"

This then tells me that one of the 2 tested were effective so they wished to pursue the further tests required to enhance the delivery of that one compound.

So to re-iterate what the entire forum has already been on to, this agreement between OBJ and FMCG IMO is essentially a locked in prospect. You wouldn't spend four years developing and continually improving the enhancement of ONE drug alone to then release a statement of intent and then simply walk away. A statement of intent is legally binding so its not a matter of if but when in regards to the FMCG.

So whose going to cross the line first the first FMCG or GSK?