Today we had a meeting with Glyn Denison Chairman, Chairman of OBJ Ltd (ASX: OBJ).
OBJ is an Australian life-sciences/consumer goods technology company that has developed various proprietary magnetic micro-array drug delivery and product enhancement technologies for the pharmaceutical, healthcare, cosmetic, homecare and consumer goods sectors.
The Company’s technology has been developed over 16 years, proven by independent studies, validated by collaboration and now partnering agreements with some of the world’s major pharmaceutical and consumer goods companies. OBJ has partnered and collaborated with global companies, Procter & Gamble (P&G) and Pfizer to name a few, to develop and bring to market next generation products that deliver molecules/compounds transdermally using physical science rather than chemistry to provide new levels of product performance.
In 2014, OBJ and P&G executed a Product Development Agreement (PDA) focussing on the development and licensing of OBJ’s technology for P&G cosmetic products. Glyn talked about the royalty revenue they are starting to receive from the first product getting launched under this agreement (called Wave 1) and that over the course of this calendar year and start of next calendar year there will be another 5 products getting launched under the SK-II and Olay brands. Importantly, OBJ anticipates these royalty revenues to grow strongly over CY2017 and into 2018 as these additional products are launched.
They also talked about the recent execution of their second licence agreement with P&G for an undisclosed technology platform. We understand this product has global e-commerce application.
OBJ finished by talking about own pipeline of technologies some of which they are looking to partner with specialised ‘US accelerators’ who will fund and co-develop new products using the OBJ technologies and under this model OBJ will receive greater share of revenues or licence fees/royalties.