Innovation Pharmaceuticals Inc (IPIX)

[CallMeCrazy]

Thank you for providing this very informative piece. I found the first 2 sections to be particularly interesting.

The first section, Getting Ready, contains, what has to be, 2 important IPIX goals:

1. To raise (non-dilutive) cash.
2. Validation.

The second section, Defining Wants and needs, 1st bullet point,

"Do you need money immediately or does it make more sense to maximize royalties later?"

I believe this bullet point factors into Leo's bargaining strategy. IPIX, obviously, needs cash now and Bertolino has stated IPIX's objective of maximizing value.

My understanding is that Leo first attempted to strike a deal for B-OM only and that it was the BP who was responsible for the addition of IBD to the deal (term sheet). This indicates to me that Leo recognizes that IPIX's weak financial position will probably lead to a deal that's more favorable to the front-end than the back-end.

I believe Leo has wisely decided that IPIX's financial condition warrants cutting a deal on an indication or two. IMO, Leo is not about to negotiate away the long-term, highly-valuable Brilacidin platform in an atmosphere that is favorable to a front-end loaded agreement. I believe this would be consistent with the IPIX stated goal of maximizing value.

https://cdn.ymaws.com/www.michbio.org/resource/resmgr/BioToolBox_-_BioResearch/Biotech-Licensing-Negotiatio.pdf