"Market entirely ignores the meaning of our Strategic Alliance and the consequences onto our future share price."
"A successful alliance can lead to an acquisition, and many do, but the likelihood of a good marriage is enhanced in these cases by a period of living together"
Exactly right imo too!
I want to add this which favors your post also:
Summary of the "PHARMACEUTICAL LICENSING OVERVIEW" report
Big Pharma continues to restructure its internal R&D departments as part of widespread cost-cutting measures to help reduce the impact of the impending 2011 patent cliff. To fill pipeline voids with new products, companies continue to form partnerships with small biotech companies, although the relationships between each are becoming increasingly dynamic.
The number of in-licensing deals in 2009 increased by 12% over 2008, confirming that Big Pharma is actively seeking licensing agreements as a more cost-effective means of gaining access to novel products than carrying out extensive in-house R&D.
GlaxoSmithKline is by far the most active Big Pharma player. While many of its Big Pharma peers have participated in large M&A deals over the past 2 years, GlaxoSmithKline has thus far preferred to focus on incorporating externally acquired products into its pipeline. click for source _____________________________________________________________________________________
Hi cmk,
You do raise a good point regarding the following passage and funding,
"There are a number of stages that any licensing arrangement must pass through that would enable a targeted partnering company to adopt the OBJ technology as a preferred drug delivery alternative. This includes undergoing its own internal testing program, its own product marketing development program, a technical and manufacturing development process and final manufacture and distribution. This process can often be measured in years and the timelines are very much controlled by the partnering company. In order that this process can be better streamlined, OBJ has taken the decision to UNDERTAKE SOME OF THE PRELIMINARY TESTING (in vitro and in vivo) internally and provide the results to the targeted companies with which OBJ intends partnering.
However, I do tend to agree with Surges on the point of funding.
As he correctly stated we do already have 5mil in the bank and that alone by my estimates could quite comfortably fully fund our own in vitro and in vivo tests for some 5+ years. (We must also remember that our most recent objo "extension" offer is also suggesting that OBJ do not require those additional conversion funds that would've otherwise been received by December this year.)
As my highlighted wording in the above notice states though, we will only be undertaking "SOME of the preliminary" testing.
Essentially, OBJ will itself conduct some of this initial work that would otherwise be done by our partners and will engage external testing facilities to progress the testing program.
Imo, the above "Initial Work" may only relate to those many other companies noted in previous Anns that we are only in current discussions with and not those we already have signed alliances with.
My thoughts & opinions only
OBJ Price at posting:
2.3¢ Sentiment: LT Buy Disclosure: Held
(20min delay)