Innovation Pharmaceuticals Inc (IPIX)

[baytdr]

Given that the Dapto patent is soon to expire which is sure to bring on more competition, pressure the price and increase the competition for both formulary acceptance and insurance reimbursement my preference would be to first secure K's SPA, then deal it to BP for a substantial up front payment and low to mid teens royalty stream. BP is better equipped to fund the trial and pending good results concurrently deal for OC and expeditiously take it over the finish line preserving as much pf it's patent life as possible thus increasing its value to both companies. The SPA is very important because it adds value in that BP needs to first see the road map as that removes risk and allows them to construct DCF models pending approval thus establishing a rationale for pricing the deal. I suspect negotiating the SPA may be complicated by trying to please both the FDA and potential buyers who may have different requirements.