yes this is a good one., page-6

interview with Jeff Edwards from Watson a poster on sharetrader.co.nz:

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Interview with Jeff Edwards -Director

Jeff: Good morning ,

Thank you for your patience. I only arrived back in the office today.


In response to your e-mail of the 14th.


WATSON: Once human clinical trials are proven effective and regulatory approvals are met, how soon thereafter can shareholders expect to see revenue flowing from the business?


JEFF:Our revenue expectations are in three parts.

Revenues from JV developments in the search for delivery solution for existing branded products.

Revenues from licensing Dermaportation solutions to vendors

Sales and marketing of OBJ branded products with superior performance.


JV and R&D revenues as early as the second quarter 2005.

Our target is to generate revenues from licensing as early as last quarter 2005 (from the cosmetic sector) however major revenues from major pharmaceutical company should not be expected before 2006.

Our target is to generate revenues from sales of OBJ branded solutions towards the end of 2005, although 2006 would be a more conservative estimate.



WATSON: At what level do pharmaceutical/cosmetic companies take on such a revolutionary product in terms of agency of sole distributor of Dermaportation type products?


JEFF: This is difficult to determine from historic data as major Pharmas are all in-licensing or acquiring products and technologies much earlier in their development cycle than even before. Additionally, as OBJ offers delivery solutions with a low regulatory hurdle, take-up rates will be market driven, rather than regulatory, and there is little historic data available in this area. Major Pharmas such as J&J and Merk have generally acquire delivery companies (such as Alza, or Forest) rather than in-licensing from third party technologies, so again the lack of a reliable model makes such predications fairly speculative.



WATSON: What market sector of companies will purchase OBJ,s technology?


JEFF: OBJ’s technology provides particular benefits in the pharmaceutical, cosmetic and nutraceutical/Lifestyle sectors.

Efficient drug delivery with greater efficacy and less side effects appeals to the Pharmaceutical sector.

Increasing the number of compounds that can be applied cosmetically and expanding the market for cosmetic compounds into new areas, is of great interest to the cosmetic sector.

Migrating a range of high growth lifestyle compounds into the home-care and OTC market is of great importance to the nutraceutical, vitamin and hormone markets.


WATSON: Will OBJ receive royalties on products using Dermaportation or will it be more of a joint venture/ownership structure.


JEFF:Both.

OBJ will develop and license custom delivery solutions that match the molecular footprint of a range of existing multi-million dollar drugs with known delivery problems.

OBJ will JV and work collaboratively with companies in the development of superior delivery solutions for product in the development pipeline.

OBJ may JV or OEM branded solutions comprising Dermaportation patches that deliver non-propitiatory drugs more effectively or more conveniently than current offerings.



WATSON: At what stage will OBJ require further capital raising by way of a SPP or private placement as I understand there is approximately 800k of cash at hand and with a cash burn of 100k per month takes us to July 2005?


JEFF: We have A$1,000,000 cash on hand and a burn rate of approximately $36K per month. The contracted testing of 12 commercially significant drugs by WABRI and our first human clinical trials have already been negotiated and quoted at a total cost of $200K.
We believe that we have sufficient funds to allow us to greatly increase the value of the company prior to any further capital raising. No capital raising is currently planned or under discussion.


WATSON: Are there any parallels with Psivida and OBJ Ltd?


JEFF:Parallels are difficult to draw as our relative profiles are so different. OBJ and Psivida a both in the drug delivery business, however parallels after that become complex.

OBJ has an approved biomedical technology that alters the skin’s normal permeability. This allows superior introduction of drugs, compounds and agents through the skin. From a regulatory sense, we are a device company, and quite separate from the drug’s registration and safety. As a result, we are not subject to the same regularly vigor or risks. This means our barrier to enter is commercial, rather than regulatory or safety.


Psivida are developing silicone biomatrix, when combined with a drug, creates a new derivate with slow or controlled release properties. This activity falls into the is a highest regulatory regimes. We believe that we are not subject to the same, risks, costs or approval barriers, yet has a similar market potential due to our ability to deliver commercially significant benefits to the pharmaceutical, cosmetic and lifestyle markets.



I hope this sheds some light on the company for you.


Regards

Jeff Edwards