- FINANCIAL REVIEW
SMALL CAPS
- Jul 29 2015 at 2:21 PM
- Updated Jul 29 2015 at 2:21 PM
Diversification a winning formula for OBJ
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byTrevor Hoey
July was a month of strong news flow for OBJ, a developer of proprietary magnetic micro-array drug delivery and product enhancement technologies.
While the company's profile is somewhat complex, this mainly stems from the fact that its products have wide ranging uses across multiple markets which include the lucrative health and well-being sector, attributes that should stand it in good stead in terms of revenue diversification.
Analysts at Baker Young recently highlighted the group had received an excellent response after its SK-11 Eye Wand was launched in Asia. Argonaut also likes the stock, reaffirming its buy recommendation on the back of recent news.
OBJ has strong relationships with global consumer goods giant Procter & Gamble and the recent success of the eye wand product has resulted in an expansion of that relationship incorporating the development of a new next-generation SK-11 product and the creation of a 3-to-5 year multi-product development and innovation program.
SI view: The relationship with P&G was reinforced in mid-July after OBJ executed a new work plan under the product development agreement. This was the sixth funded work plan with the group and it will take advantage of OBJ's skin science laboratory capabilities.
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