Intellipharmaceutics International Inc. (IPCI)

[AngeloFoca]

The worst thing they could do right now is dilute down here to finish Rexista trials.

Going forward, they basically have 3 or perhaps 4 possible revenue streams.

Rexista, Regabatin, XR Generics, and possibly PODRAS outlicensing.

If they dilute down here to advance Rexista on their own, they would be cutting any future revenues on their complete pipeline in half to raise perhaps $30 million.

On the other hand... if they partner Rexista at say 1/2 of what they would expected to get if approved - let's say $5 to $10 million up front rather than the ~ $20 to $30 million, and 15% royalties as opposed to the 30% to 40% one might expect to get from an approved drug, + partner picks up all future costs of trials and legal fees... then they cut in half ONLY the Rexista revenue stream... all future revenues from regabatin and XR Generics would remain intact as before this fiasco.

It would be a win-win situation

IPCI gives up half of the potential Rexista revenues to salvage full revenues on the Regabatin and XR Generics... as opposed to cutting their total future revenues in half. ------- WIN

Partner would utilize the $15M to $25M up front payment, saved by partnering now, to bring Rexista through approval... and they would then reap an additional 15% of an approximate $200 to $300 million revenue stream in the near future. ------ WIN