Acrux was established back in 1998 to develop a transdermal technology platform which was originally discovered at Monash University, and their monster deal with Lilly came just 2 months following the ADO ann
The Axiron NDA was also under review by FDA at the time of this announcement which certainly added more value to the deal... and what a deal it was...
Lilly to Acquire Global License to AXIRON Testosterone Solution from Acrux Eli Lilly and Company and Acrux announced today that they have entered into an exclusive worldwide license agreement for the potential commercialization of Acrux’s experimental underarm testosterone solution.
Under the terms of the agreement, Lilly will receive exclusive worldwide rights to commercialize AXIRON.
In exchange for these rights, Acrux will receive an upfront payment of $50 million plus $3 million on the transfer of manufacturing assets. Acrux is further eligible for $87 million upon the issuance of marketing authorization by the FDA, and up to $195 million in potential commercialization milestones, as well as royalty payments on future global sales if AXIRON is successfully commercialized." ___
I'm not anticipating anything of that magnitude to come for OBJ in 2012, but I don't write the idea off once the partnered pharmaceutical drug projects emerge, or our own internal developments enter the FDA regulatory pathway attracting more cashed-up Pharma giants for the more lucrative late stage licensing deals. ___
Hi Surges,
"Should the FMCG reveal its name, OBJ should double in shareprice simply on that information."
I completely agree with this as I believe a large part of our market remain unforgiving since the trade driven rally in early 2010, regardless of the GSK reminder provided to them every year. An additional global name disclosure would most definitely encourage some non-believers to start factoring in a lot of the progression that has been ignored by our market over the past two years.
The global FMCG giants and GSK's of this world are not philanthropists. They really wouldn't give a rats about a tiny $20m biotech in Perth or any of her s/holders... They are only attracted to innovative technology backed by good science
In regards to the dollar terms not being connected with the JDA negotiations, I respectfully disagree with your opinion on this Surges.
Whilst I acknowledge that product applications in the field of beauty care in joint development with one of our more recently announced FMCG partners may not be as rewarding as other anticipated deals with long term partners like GSK and FMCG#1, I still remain very confident that both the financial and investment terms are being negotiated as part of the JDA.
30 November 2010 "This program calls for initial internal testing of the FMCG company's formulations, and subject to the success of that internal testing, to be followed by negotiations of on-going development and possible licensing across these multiple applications."
27 September 2011 "Considerable progress has been made over the past twelve months in consolidating one of the business strategic goals of securing partnering activities to deliver short, medium and long-term commercial return."
28 February 2012 "Late in 2011, the Company reported that the previously announced Strategic Alliance program with one of the world's leading Consumer Products companies had further progressed following successful technical evaluations. In October, the Company learned that the FMCG company was seeking world-wide exclusive access rights to OBJ’s technologies in the area of a beauty.
Negotiations commenced regarding the various financial, developmental and investment commitments by the FMCG company to OBJ’s technologies and considerable progress in these negotiations was achieved during the period." ___
(20min delay)