Innovation Pharmaceuticals Inc (IPIX)

[sox040713]

I think “a real company” means profitable. It is sooner than people think. B should be approved and CTIX should receive their first royalty check in 1-2 years. With a good partnership deal, which I believe it is in the works, CTIX will have free cash flow to fund other trials. By then, the big boys will start jumping in.

When do you think the company will be Free Cash Flow (FCF) positive?

Ehrlich: The business model is to advance the compounds as far along in the clinical trial process before engaging in a deal with big pharma. The value of the compound goes up exponentially the further along it is in the trial process. A compound which has completed Phase 1 is much more valuable than a compound that has not yet started the trials. The same is true for Phase 2 and 3. If even a portion of our preclinical results are confirmed or replicated in the Phase 1, I would have to believe the compound is worth in the many hundreds of millions of dollars, which will really perk the interest of many of the big pharma that have already contacted us. To say when we will be FCF positive ultimately depends on licensing or partnering agreements that could come as results from the clinical trials from Kevetrin and other potential deals with our other compounds.

http://www.valuewalk.com/2011/11/interview-ceo-cellceutix-corporation-leo-ehrlich/

How do we become a real company. Right now we're just Pinocchio wanting to be a real boy!