Some key points of the 10k:
** The commitment fee as other expense with the likelihood of not reaching any of the milestones by September 30th.
- I feel bidding had been occurring for B-OM but no real term sheet agreement before June 30th. CDAs prove this but no way for us to know what will come about. Leo made an agreement with Aspire completely as a contingency plan as well as a means to gain leverage when negotiating with potential partners. One key word of the agreement with Aspire is that it kicks in upon announcement of the milestones with restrictions on share price and volume averages. IPIX holds CDA's with potential partners but most likely not with Aspire. Therefore IPIX and CDA holders are keen to BTD and P results but Aspire is not. Aspire would have to wait for the announcement just like we do. IPIX can withhold that information as long as necessary and as long it is not leaked by anyone in IPIX, a CDA holder or by any other breach.
- If partnership negotiations did not progress THEN management would release the information on BTD for the milestone payment. I also feel that the P announcement is moot because the agreement states that P would have to meet its primary end point. Essentially P already met it's primary end point so they could make an announcement and trigger the P milestone to pay the CRO and get the final results.
- Partnership agreement most likely did progress to plan and part of the plan was to delay payment to the CRO for one reason or another. It may be likely the partner wanted it delayed for one reason or another or management agreed to in order to focus all attention on the B platform. The partner sweetened the deal to focus solely on B by adding IBD which I feel will increase the upfront milestone payments. Once the partnership starts, management will either partner P with another company but I feel most likely the original partnering company will add P to the mix or just buy all assets as a whole.
- I have stated all along that depending on P results the partner in question would have first right of refusal to buy the whole enchilada. I still believe this. IPIX announces partnership, directs all attention to the B platform, pays the CRO, gets the final results and then partners or sells the company as they see fit.
- The 10k also breaks out the Polymedix assets from Kevetrin. I believe this was done on purpose as well. It spells out the risk the partner takes on for P and B with licensing from the University of PA as well as establishes K as it's own asset if IPIX partners P and B then goes at it alone with K. Leo and Menon have separate percentage agreements on K if it reaches market.
All this adds up to a real deal for B and ultimately P soon enough.
