Innovation Pharmaceuticals Inc (IPIX)

[thefamilyman]

You said, “They still have right of first refusal on any future IBD indications (that's what they bought for $420K) so no one can snipe it out from under them.”

The problem with giving someone a “right of first refusal” is that if everyone knows it exists, it becomes a big disincentive for another company to do the detailed valuation research necessary to develop a real world offer. After all, why should they invest the time, effort, and money if all a competitor has to do is match the offer. Of course, Leo can always take AS to court if they don’t perform in a timely manner. But interestingly, the only way to avoid either the lowball scenario or years of litigation, may be to go it alone for IBD. I have voiced my support for Leo going it alone for some indications, however IBD would not be my preference for this option.