Development agreement between OBJ and GSK from May 2011:OBJ is...

Development agreement between OBJ and GSK from May 2011:

OBJ is pleased to announce that GlaxoSmithKline Consumer Healthcare ( GSK ) and the company have entered into an exclusive Collaborative Development Agreement with the objective of developing new consumer products in the field of Oral Health utilizing the company's proprietary technologies.

This development was on the heels of several years of testing and evaluation between OBJ and GSK.

Since we are dealing again with OTC counter products, though using all of our 3 main technologies, I would estimate similar time frames for reaching clinical trials with our beauty care FMCG.

I would though emphasize that the beauty care FMCG approached us in a more urgent fashion than we could observe it with GSK, meaning that progress seems to be fastened.
However, we still would be at least 6 months away from initialising clinical trials after the a successful JDA.



About GSK's collaboration with OBJ:

The Collaboration Development Agreement is a GSK-funded program involving several Evaluation and Development phases.
The results will then be used by GSK to determine wether to proceed or otherwise with its further involvement in the product development phase.
GSK and OBJ have collaborated on enhanced oral healthcare developments on similar bases resulting in staticstically and commercially significant levels of enhancement. These results were reported in October 2010 and led to the current Collaborate Development Agreement

Obviously, our beauty care FMCG will want to move along similar timelines with testing and development.
If the progress with GSK was any indication, we should see an anouncement on the JDA 6 months down the track from the last announcement in Oct 2011 which puts us again at end of April, early May.
Remember that it took GSK from Oct 2010 to May 2011 to announce the next step without any maintained improvement on the shareprice after announcement as a result.

As mentioned previously, if the FMCG chooses to reveal its identity, we should look at a proper boost in our shareprice.
A fully funded program by the FMCG should also be the consequence, similar to GSK.

An upfront payment at this point in time, as I see it, would be premature as the FMCG has not yet entered clinical trials.
They would, just as GSK did, reserve the right to exit the development should in vivo studies not be supporting further involvement.


Both, GSK and the beauty FMCG have now claimed exclusivity at a very early point in time during development which is largely encouraging for our long term outlook.
GSK though is one step ahead of the FMCG and is next in line to report results from the clinical studies which could lead to financial details and milestones numbers included in a proper deal.
I therefore expect GSK to be our material announcement in the near future with wide ranging consequences to our shareprice.