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Great analysis of OBJ and its potential for exponential growth....

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Mike108

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23/08/14

19:21

Post #: 13862266
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Originally posted by coppertop01 ↑

OBJ - Future Global Disruptive-Innovator Powerhouse
(Note - I have done this post assuming some may know nothing of OBJ and/or disruptive innovation.)

OBJ is disruptive-innovator offering five separate technology platforms to suit a broad range of medical, consumer, household and consumer needs around the globe. source: page 6 These needs include, Dermatological, Skincare, Cosmetics, Oral Health, Hair care, Surface Hygiene, and Fabric care. source

OBJ recently announced a breakthrough deal with Proctor and Gamble. source (Coincidentally - P&G has many products that also fulfill the seven needs mentioned above that OBJ has targeting its disruptive-innovation technology. source )

So what is Disruptive Innovation?

Here are 3 explanations:

- GOOGLE: A disruptive innovation is an innovation that helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology source
(this is what OBJ's technology can do to existing markets)

- THIS HARVARD BUSINESS REVIEW VIDEO:

The Explainer: Disruptive Innovation

Quotes of note:
- (at 1.43 sec) ...That's how Proctor and Gamble came up with Crest White Strips - a cheap do-it-yourself alternative to an expensive dental service. (what the video doesn't say the Crest White Strips are based on a technology developed by and licensed from a small biomedical company. source
(This is what OBJ's technology can do, and OBJ is doing for P&G - but in MULTIPLE products)

- (at 1.51 sec) ...Disruptive innovation creates new markets and reshapes existing ones. To achieve growth in a fast changing world you want to be a disruptor - don't be disrupted.
(This is what OBJ's technology can do for its own products, source: pages 14,15,16 and assist other companies to do utilising OBJ's disruptive technology - ie; P&G, Coty, source GSK. source )

- THIS INNOSIGHT VIDEO:

What is disruptive innovation?

Quotes of note:
- (at .43 sec) ...What a disruptive innovator does is trade off pure performance. Instead of making things much better, they make it much simpler, they make it more affordable, they make it more accessible, they make it more customizable, and drive growth by playing the game in a different way.
(OBJ's technology does all the above - and may I add despite what the quote says, OBJ can ALSO make things better - a lot better ie - up to %700 increased skin penetration of active ingredients through the skin. source: page7 This statistic alone is a potential game-changer to many existing products and/or markets)

So What Is the Technology That Makes OBJ a Disruptive-Innovator?

OBJ’s proprietary magnetic fields and magnetic micro-arrays provide a low cost, powerful and chemistry-free method of enhancing drug delivery and product performance.

By utilising the natural reluctance of molecules to move within a magnet field and the energy generated by their motion, OBJ is able to influence the movement and penetration of drugs and active ingredients at the molecular level without the need for costly new chemistry.

When a magnetic micro-array is correctly matched to a product’s atomic structure, the physical properties of the target, and normal consumer behaviour, it provides a low cost, powerful and chemistry-free method of enhancing product performance.

SCIENCE BEHIND THE OBJ TECHNOLOGY
Complex three-dimensional and moving magnetic fields have the ability to repulse certain molecules to enhance diffusion and alter the permeability of biological and non-biological targets. These properties of magnetic fields result from:

Diamagnetic Repulsion - a property where matter with paired electrons are repulsed by a magnetic field. OBJ harnesses this force to control the rate, depth of penetration and delivery pathway of active ingredients during diffusion and partitioning.

Induced Charge Permeation - a property of the dielectric characteristics of target barriers. OBJ harnesses this property to manipulate transient permeability and to focus active ingredients at structures where the physics of micro-fluidic flow influence delivery outcomes.

Energy Redirection - a property of surface charge accumulation. OBJ harnesses this effect to capture the motion energy of normal usage behaviour to alter surface flow characteristics and penetration in target barriers. source

OBJ currently offers five source: page 6 separate technology platforms to suit a broad range of medical, consumer, household and consumer needs. These include:

eM-patch - A film based micro-array technology ideal for patches,masks, dressings and other topical applications. The magnetic micro-array film replaces the traditional plastic backing layer imparting new levels of product performance with minimal cost impact..
The magnetic field gradients required to interact with each active ingredient and the barrier function of the target biology are programmed into the film during manufacture.

Field in Motion (FIM) - A magnetic micro-array film that is integrated into brushes, applicators and wipes captures the energy of motion of normal usage behavior and redirects this to achieve new levels of product performance. Structures within the micro-array are developed to enhance delivery of active ingredients and to focus these at structures and pathways such as epidermal pores, follicles and dentine tubules.

Well suited to brushes, scrubs, wipes, applicators and various products where consumer movement and manipulation from part of normal usage patterns.

Dermaportation - A precision delivery system generating precise time-varying magnetic fields by an onboard micro-processor. Designed for applications where repeat applications, extended usage and multi-formulation requirements make a powered reusable device the best solution. Able to be implemented as a power-patch, a wand, an instrument or an iPod-like device, Dermaportation is well suited to many professional and retail applications where repeat delivery of consumables or the targeted delivery of actives is beneficial. source

So How Are OBJ Bringing This Ground Breaking Technology To Market GLOBALLY?

Cleverly - Though they are on track to rolling out their own product called BodyGuard source: pages 14,15,16 their main business model source: page 8 is to license out their technology to global partners who also bankroll the main development costs and the cost of bringing those products to market.

This business model means they are FAR LESS SUSCEPTIBLE to going bankrupt developing and bringing product(s) to market - which is the curse that has brought many a start-up undone.

So From An Innovation Point of View, Who Are The Best Global Candidates To Partner and License OBJ Technology? In Particular - which potential partners already ACT like an Disruptive-Innovator and has the internal culture to match?

- Based on values calculated in August 2014 in the The World's Most Innovative Companies 2014 Top 100, there are quite a few potential partners that fit the bill. source But the one ranked at 84 (or ranked at 9 in the 5-Year Annualized Total Return (%) list - which I think is more relevant) is OBJ's biggest partner - P&G.

THIS IS HUGE! But before I explain why it is incredibly relevant to the current and future success of OBJ - it is important to understand how P&G got to this point in time that makes it the perfect innovation partner for OBJ.

Here are 3 explanations:

An Innosight article titled:
How can you build a growth factory? source

From the article, some quotes of note:
- ...But in March of 2000, a slight decline in P&G's sales and an earnings warning sent its stock price tumbling. By June, P&G named a new CEO, A.G. Lafley, who brought in fresh thinking about corporate strategy and welcomed new perspectives on innovation. When an internal analysis revealed that only 15% of innovation projects were meeting success targets, senior executives began searching for ways to turn around this key metric.

- ...All in all, thousands of P&Gers applied its improved innovation framework to scores of new projects and products. "Innosight has been a close partner in P&G's innovation transformation," said A.G. Lafley, who retired in 2010 but returned as CEO in May 2013.
P&G's growth factory initiative was detailed in a June 2010 article in the Harvard Business Review by Scott Anthony and Bruce Brown.
The result is that P&G has dramatically improved its innovation success rate, moving from about 15% to over 50%, meaning about half of its new product efforts are meeting benchmarks for success. That has helped boost overall corporate performance. Over the decade, P&G's revenue more than doubled, and profits quintupled.
The commitment to the growth factory principles has continued through management changes, including the return of CEO A.G. Lafley in 2013.

Innovation at Proctor & Gamble Video:

Innovation Capabilities: How Proctor & Gamble Built A New Growth Factory

So P&G has now improved its innovation success rate to to over %50 - and the man who drove P&G's cultural change to become a Disruptive-Innovator is A.G. Lafley.

Proctor & Gamble Video:

[SIZE=4][FONT=arial]An Interview with A.G. Lafley[/FONT][/SIZE]

(Interestingly, A.G. Lafley. is co-author, with Ram Charan, of The Game-Changer: How You Can Drive Revenue and Profit Growth with Innovation (2008) - so he is serious about innovation and more importantly - the culture required to innovate.

CONCLUSION

So what does it mean now that 2 Disruptive-Innovators (OBJ and P&G) have formed a partnership?

For P&G I believe they see it as a way to meet its stated annual growth goal of between 4% and 6%, as P&G NBG has been charged with introducing OBJ technology across all it's brands. source: page 9 Of course, not all brand are going to be suitable - but those that are - we know P&G expect and get a 50% success rate on all it's innovation.

So what will that mean for OBJ? It will mean royalties on a range of global products from P&G that will make
OBJ a Future Global Disruptive-Innovator Powerhouse.

cheers Coppertop01

PS - I haven't done any cash projections, but a quick look at all of P&G's product range source which P&G are/will be assessing for use with OBJ technology will reveal a large number of candidates VERY suitable for OBJ technology and licenses - which means OBJ future royalty streams (from P&G alone - & not mentioning our other partners) will be seriously substantial. I leave it to you to do your DYOM (maths), and of course, also DYOR.

Note - Researching this post has only re-enforced my belief the SP will end up somewhere between 15 to 50+ cents by year's end. source

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Great analysis of OBJ and its potential for exponential growth. Thanks for posting!

OBJ Price at posting: 9.2¢ Sentiment: Buy Disclosure: Held
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