Innovation Pharmaceuticals Inc (IPIX)

[BonelessCat]

There are other manners in which the SP can go to $20 more quickly. A deal for B is likely to be for all IBD and OM (if not the entire B platform). Recently there have been platform deals that closed with half a billion up front a more than a billion in milestones. Half a billion in the bank with a small multiplier of 2 would yield an SP of >$6. The price could easily spike to $20 on covering and buying, but would correct quickly and steeply. Seen this scenario.

Announcement of such a deal on a Monday morning before open would crush short interest by not allowing an escape from steep losses without paying the new premium.

Another would be a flat buyout. Leo and Menon aren't spring chickens anymore. They might take a deal that would include Menon retaining royalties, Leo getting a board seat and Dr. B retained by Big Pharma for 2 years of transition and a fat check. Such a manner would instantly make the SP the buyout offer, probably >$50.

Yeah, all of the above are fairly remote possibilities, but I've seen stranger and more radical in things BioPharma Land when there have been no failures.