Innovation Pharmaceuticals Inc (IPIX)

[sox040713]

You can thank Mako, someone you have never blamed, for the delay. Unlike most antibiotics, B also has anti-inflammatory properties that need to be proven. Given the limited resources due to the low SP, Leo had two options:

1. Raise $30M (major dilution) to run B-ABSSSI Phase 3 (antibiotics).

2. Sell to Aspire on a need basis (minor dilution) to run these four Phase 2 trials.
a. Kevetrin (ovarian cancer)
b. Prurisol (psoriasis)
c. B-UP (inflammatory bowel disease)
d. B-OM (inflammatory disease)

Now let's look at the potential market. I think most would agree that cancer, psoriasis and inflammatory disease market are much bigger than antibiotics. That's why IPIX decided to go after three bigger markets with less dilution instead of one smaller market with major dilution.