The term sheet news is very positive. I agree with your statement, "deal from this term sheet could come quickly (weeks), given there is no DD to be done, just final negotiations."
The PR has been thoroughly reviewed here and I agree with most of what has been said.
One point missed in the term sheet discussion is our potential partner has secured a negotiating position in Brilacidin's largest potential market, IBD. The IBD market is huge.
"the Company has signed a non-binding term sheet with a global pharmaceutical company to develop and commercialize locally-administered Brilacidin (e.g., foam, enema, gel), on a worldwide basis, for the treatment of Ulcerative Proctitis/Ulcerative Proctosigmoiditis."
IMO our potential partners vision is to expand on IPIX's outstanding proof of concept for Ulcerative Proctitis with locally administered Brilacidin to confirm its effectiveness. Most likely this will be a large stage 2 or 3 FDA trial.
The Right of First refusal Rights will allow our suitor to secure a bigger piece of the IBD market if the subsequent FDA trials confirm the proof of concept study. This will include the potential oral medication for treatment of Crohn's disease, Ulcerative Colitis and Irritable bowel syndrome, an absolutely enormous multibillion dollar market
"Right of First Refusal for rights to Brilacidin for the treatment of more extensive forms of Inflammatory Bowel Disease, such as Ulcerative Colitis and Crohn’s Disease, and a Right of First Negotiation for rights to Brilacidin in other Gastrointestinal (GI) indications."
The "other GI indications" IMO would include any oral,including OM,esophageal,gastric,duodenal and small intestinal potential applications.
IF IPIX can secure a partner for IBD IMO it has advanced its development by at least a year or more. My expectation was we would not receive a partnership offer for IBD until after the Brilacidin for OM stage 3 was finished.
IMO IPIX releasing a PR regarding the term sheet as opposed to burying the news in the 9/2018 report shows some confidence on the companies part that a deal can be consummated.
I do not view the term sheet offer as a conservative move but rather a recognition of Brilacidin's potential to be a significant treatment modality for IBD and an aggressive attempt to secure ,guide and profit by its development.
GLTA,Farrell
BEVERLY, MA – May 16, 2019 (GLOBE NEWSWIRE) Innovation Pharmaceuticals (OTCQB:IPIX) (“the Company”), a clinical stage biopharmaceutical company, is pleased to report that the Company has signed a non-binding term sheet with a global pharmaceutical company to develop and commercialize locally-administered Brilacidin (e.g., foam, enema, gel), on a worldwide basis, for the treatment of Ulcerative Proctitis/Ulcerative Proctosigmoiditis.
The non-binding term sheet also includes a Right of First Refusal for rights to Brilacidin for the treatment of more extensive forms of Inflammatory Bowel Disease, such as Ulcerative Colitis and Crohn’s Disease, and a Right of First Negotiation for rights to Brilacidin in other Gastrointestinal (GI) indications.
Completion of the transaction, as specified in the non-binding term sheet, is subject to further negotiation and execution of a definitive agreement. If the definitive agreement is reached and signed, the Company anticipates that it would receive an upfront payment, plus potential additional regulatory and commercial milestone payments, as well as royalties.
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