Innovation Pharmaceuticals Inc (IPIX)

[PlentyParanoid]

I may have confused you. I was speaking about small upfront payment in case of BP taking over drug manufacturing, development and commercialization. Upfront can be cash payment or 'strategic investment' at good premium over going share price. Maybe enough for the licensor to survive solvent until first milestone payment, but only if the licensor limits activities to sittin on their asses.

A recent example: CytRx got upfront $13M 'strategic investment' at 92 % premium from NantCell in licensing deal for aldoxorubicin. Cytrx was on private placement market about 9 months later. As a personal comment about the 'greatness' of CytRx deal, I think that it may take 2 more years before CytRx sees the first milestone payment, if ever.

I suspect that Leo is trying to negotiate something better.