Hi growth goblin,
"It seems to me that the first licence to P&G relates to a non-powered wand to be used in conjunction with the Olay Regenerist product range. Would that mean there won't be repeat sales if the wand has a relatively long life span?? How will they incorporate OBJ's technology so it is a product (i.e. a non powered wand for P&G or powered wand for Coty) that will have high turnover and lead to repeat purchases like the cream the wands will be used for? Obviously short life high turnover products are what OBJ shareholders (not so much consumers) want..."
Good question.
I'll offer you my opinion, but in searching for the most reliable answer you'll be better off putting that one to the company.
Assuming OBJ's non-powered wand units significantly improve the efficacy of existing P&G skin care formulations currently under investigation, I believe it would also be in P&G's best interests to offer them as a single use disposable item with each product sold. Will there be any risk of achieving improved outcomes should the consumer decide to try the wand out on a competitor product with similar ingredients? Do we assume this may also form part of the reason why proprietary molecules have been specifically chosen by P&G?
The initial objective of our P&G partnership was for OBJ to develop customized magnetic micro-arrays capable of interacting with key proprietary molecules used by P&G across a number of their global product platforms, for controlling the movement of the molecule(s) within a formulation, and enhancing the delivery performance of them into the selected target site. The development of custom micro-arrays is a very complex, technically challenging, and highly specialized discipline, and as more information comes to hand during the company's commercialization phase I expect the market may soon come to better appreciate where 3M fits into the bigger equation.
In regards to the powered devices incorporating the company's Dermaportation technology, and more specifically OBJ's e-Skin product platform which I assume is the most advanced of the programs powered by Dermaportation progressing under the Coty/Philosophy collaboration - these devices will definitely be re-usable, however there is an e-commerce component in here as well, which as you question, is probably the 'repeat business' part of the product offering - So we could refer to the powered device as a one-off-sale base unit.
The company showcased the e-Skin device at the 2011 AGM, so you may find the following posts from two of the attendees on that day more helpful...
25/11/2011
You really had to be at the AGM to fully understand this device and the huge revenue potential that it can achieve for OBJ. Presented by Jeff Edwards was a powered delivery device. The consumer will clip a pod onto the device which they would purchase as a kit. The powered device would be made by another company and OBJ will receive royalty fees from the sale of the units, and will make 100% of the profits from the sale of the pods. This device can be used with any cosmetic product and each powered device purchased will need to be programed via a phone app to suit each individuals personal needs. I hope I have explained it ok as I'm not up to scratch with this kind of technology. I'm sure some of you out there could better explain how this would work on a commercial scale. As Jeff said its all about permeation and instead of the consumer having to have cream on their face for extended periods they could just use the powered device to deliver their favorite product more effectively and deeper into the skin - no more leaving cream on your face.
After asking Jeff for further clarification so I could better understand what he was saying I looked around the room to see the other shareholders looking as gob smacked as I was. This is huge for OBJ. I can see every women in years to come using this device.
25/11/2011
One of the most significant takeaways from the AGM for me yesterday was Jeff's revelation of the latest technology from OBJ that you have referred to in your 'powered delivery device' thread.
I’m sure that Jeff referred to it as 'e-Skin'.
It is based on OBJ Dermaportation technology which (importantly) has recently been granted international patent protection. The 'pods' contain the cosmeceutical and look like a patch about the size of a 50c coin. The DP device is about the size of stick of roll on deodorant and is designed to be multi use (presumably with battery changes).
It is very cool technology.
Jeff explained it perfectly. When you buy the 'eSkin' applicator and pods you fill in some details about you and your skin type, whether you have dry or oily skin for example. Then you download the iPhone app that has already been developed for the product. This app will take your personal info and take in to account where the iPhone is at the time of application of the cosmaceutical (eg temp, humidity, elevation maybe) and then the iPhone will send a piece of code to the eSkin applicator that programs the magnetic field that is most efficient in delivery for you under the prevailing climatic conditions.
Excellent.
This is really cool stuff and whilst there is a perceived dearth of information coming from OBJ via their announcements (because of confidentiality issues) they are not sitting back doing nothing. Several times Glyn mentioned OBJ's conservative nature and I certainly respect this as being very good management. Take a look at their financial statements as being a terrific example of conservative mgt.
Finally about Jeff Edwards the man.
What a man! He is a very passionate scientist and listening to him speak you can't help but get excited about the opportunities for OBJ's research. He is an inspirational chap.
I have no doubt that the science here is very robust.
(20min delay)