Innovation Pharmaceuticals Inc (IPIX)

[MinnieM]

I can buy into all you are saying except for the following statement since I have no idea what the upfront payment was/is. And, it's unlikely that anyone outside the company knows.

He pulled the trigger after he got what he wanted and that included a hefty upfront payment.

Hopefully, you are correct.

Doing better daily... should be able to hit the gym late September. Thanks.






In Reply to 'petemantx'... the bolded parts
My take is that this is an excellent deal for IPIX, much better than I was expecting. Why, as according to the boo hooers Leo was negotiating without any ammunition? Here's my reasoning:

1 - Partnered with a BP that is heavily into the IBD/GI tract arena so they (AS) jumping on Brilacidin validates the science to a degree far and away better than someone without the concentrated efforts in this field.

2 - The fact that they wanted the rights of first refusal/first offer/whatever shows they realize the TOTAL IBD significance Brilacidin should bring about in the way of IBD treatments. To secure such an agreement, why would anyone think Leo did not secure a significant upfront payment that should take care of our future needs (or at least until the OM deal is signed) to advance the oral formulations for both Brilacidin and Kevetrin? An upfront payment of only $20MM+ on UP/UPS away and above what they originally wanted to spend would prove a drop in the bucket to help them secure favored position with Leo for all of Brilacidin and result in the likely future revenues in the many,many billions. I believe the secrecy with upfront payment is per AS demands so nobody knows how tight they are with IPIX in regards to future bids for indications. Does anyone really believe Leo gave away the deal for single digit $MM or close to it?

3 - AS is picking up all costs - period - in regards to putting Brilacidin UP/UPS on drugstore shelves. AS doesn't have unlimited funds regarding acquisitions as do the really big boys, so they must spend wisely and they have determined the entire Brilacidin GI tract platform is where they want to focus their energies.

Leo didn't let things drag out as to negotiations for a handful of $MM up front. He pulled the trigger after he got what he wanted and that included a hefty upfront payment.

I do not foresee any further need to further dilute stock using the MOF or other ways to obtain high cost capital.

Though IMO this is a good deal, it frees up Leo to obtain GREAT deals on ALL future deals and all future deals will be for far greater revenues than UP/UPS and that, combined with now having funds to advance the pipeline, is why this deal was an excellent deal.

Glad to see you back and hope all is well with you.