RespireRx Pharmaceuticals Inc (RSPI)

[neuroinv]

The VC I believe did the deal doesn't look like a consistent fast-flipper or a group aiming to do a takeover--none of their exited companies that I recognize (only a minority are CNS) were 'taken over'. My read of them is that they have made an investment very cheaply, and they probably have some internal standard they shoot for--five to tenfold gain. If they reach that, perhaps they'll exit. It looks to me, at least based on the CNS companies they have invested in, that they shoot for companies with a clinical data inflection point coming, either Phase II or III. On the companies they were or are in, that involved a predictable 1-2 year timespan. I don't know if the same would apply here (SA Phase IIa? their modus operandi makes me think it more likely to be ADHD Phase IIb). But it is a different world now, so they might be more inclined to go pick a different low-hanging fruit once they've hit their benchmark goal.Buy and hold may now be less applicable to VC's than it once was.

Caveat: the group I refer to approached a friend of mine for input as they did DD on Cortex. So I know they looked. I have not confirmed--or even tried to at this point--that they ultimately did the financing.

NeuroInvestment