For the record I didn't say that I believe OPRX-106 will be further developed.
I said that I liked the ingenious use of the design of PLX production of using plant cells as the natural delivery vehicle for a drug that will be released only at the site where action is needed, the colon in Crohn's disease. And that I personally hope that funds will be made available for this as I believe it has good market potential as it had compelling efficacy and safety data on a relatively short trial and a great method of administration.
But I mentioned this as a personal hope for further development. Not that I think it will happen necessarily happen.
Secondly, one must think that the deal that PLX got with Chiesi on PRX-102 is a very good deal.
It may be possible that the potential partners were not willing to provide partnership for OPRX-106 in similar or favorable enough terms. They already made virtually no money from the Pfizer deal so they are hardly willing to go for another deal that will seem them have low return on the cost of good involved. Thus I am merely surmising that as they still retain control that they could bring OPRX-106 back into active development and I think it deserves more research. And I personally hope they will, but this is not to say that I think they will. I will not give any specific probability on this, as, as mentioned I have no information on it. But I would like to see it return to the pipeline and I don't see much of a reason why not.
I would think at the very least they could try a moderately sized (circa 80-100) randomised active comparator trial to see if it can match SOC on efficacy, but provide the benefit of oral delivery with no important side effects seen thus far. It's not like Crohn's is a rare disease so a trial of that size would not take too long to recruit.
Separately, I also personally disagree that the company is in view of a sale. If this were to be the case based on expected approval and sales of PRX-102, then this would have been a consideration at the time the USA and ex-USA Chiesi deals would have been inked. If this were the case then it would not make sense for the Chiesi deals to have bothered including the level or royalties and mentioned 1 billion in potential milestone payments.
If management and/or Chiesi would have had BO in consideration on PRX-102 approval, they could have just agreed a simpler deal, just say royalties on net revenues, rather than including a very large 1 billion in milestones on top of the royalties.
The fact that this isn't the case, and both USA and ex-USA deals includes Chiesi paying a transfer price for drug material, paying significant up to 35-45% royalties on net sales, and the 1 billion potential milestone payments, does not have the indication of a company in PLX's place looking to sell at first signs of approvals and 'subsequent decent sales'.
Thus selling the company does not look logical to me at this stage.
Selling would may look logical to me in a few years later after PRX-102 has appeared to reach close to peak sales, when if management want to sell, they would get the most bang for their buck, as the baseline value of the company and their shares would be at much higher place and get a significantly greater return. If their purpose is to get even richer, than they already are, then why not wait a few more years to actually get much richer.
Remember if PRX-102 does do well, it's not like Dror and Eyal for example have to do much more efforts. All PLX has to do now on the PRX-102 program is sell finished product to Chiesi and Chiesi takes care of the rest.
I hope I have clarified my position on OPRX-106, so please do not put words into my mouth, as well as separately providing a clear perspective on why selling the company is not logical to me as yet.
Thus I do not believe there will be talk of BO at tomorrow's ER.
