Innovation Pharmaceuticals Inc (IPIX)

[Ernesto]

Likely to Decline More Short Term.

Long-term prospects of CTIX look extremely good. Excellent pipeline and undervalued stock.

Short-term may not be as pretty:
1. Tax loss selling is ongoing and will continue steadily.
2. Aruda will receive 6M shares. While these will remain locked up for a while, he has existing ones he will likely sell in their place. This will create a double-whammy of sustained downward pressure that we have been seeing since the last spurt of news.
3. Kevetrin Phase 1 results may not be astoundingly good on the efficacy side. If they don't blow the doors off the joint expect selling on release.
4. Brilacidin Phase 3 is expected to start. News of this announcement will bring little appreciation on it's own.
5. Another hit piece is likely to come highlighting competition for B-OM coming from Soligenix's SGX942 OM drug as well as COTI-2 competing with Kevetrin as an oral agent. Prurisol is already entering a highly crowded arena.

Look to short here or hold powder for lower prices over the next few weeks. 2016 will hopefully be brighter but we may be looking at 2017/2018 if Prurisol does not deliver mid-year.