Some comments as food for thought on IGXT. While the recent news to partner with Edgemont on the commercialization of CPI-300 was poorly presented IMO, the overall news was bullish. They received 7 figures up front, with more to come upon launch and beyond - plus the royalty stream. My concern here is that Edgemont looks like they are going to rely on an internet sales approach, as opposed to partnering with someone with a direct sales force (Michael Schultz is listed as Edgemont's Managed Markets advisor on their web site, which also states he was previously Biz Development Sr Dir for Express Scripts).
450mg Wellbutrin is only used by 10% of the overall antidepressant market using Wellbutrin. If you have a direct sales force they can communicate with doctors about using the 450mg for other Wellbutrin users, and also for people using other anti-d's (plus there are the numerous off-script uses - insomnia for one) - as opposed to using Express Scripts as your primary strategy (as it looks like Edgemont might be planning) which doesn't provide the exposure to explain (sell) your product.
I hope to meet with Dr. Zerbe next week in NY, but my questions (in case I can't make it and someone else is going) would be:
1) Dr.Zerbe you have stated that IGXT will be turing a profit by the end of '12 from CPI-300, is that still your forecast, and what are you projecting?
2) Can you explain why you think Edgemont is the best choice to commercialize CPI-300, and when can you share their marketing / sales plan?
On a recent business trip to Texas (Austin) I did some DD on Edgemont. Their corporate offices seem modest at best (it's really only a small office, would guess maybe 2-3000 sqft). They possess no laboratory space as all research is contracted out (according to the person I spoke with), and from the size of their office and the info on their web site it appears they have no more than half a dozen full time employees at best (most 'management team' personnel on the Edgemont web site are listed as advisors - beyond the CEO and CFO - hope my observations here proof incorrect because it makes me nervous). As such another question for Dr. Zerbe would be:
3) Why after a year of looking for a commercial development partner for CPI-300 you choose Edgemont over more established and experienced pharma companies.
4) Finally, are you related to Dr. Robert Zerbe who is listed as a member of Edgemont's board of directors?
To conclude, I am long the stock at $0.50-0.53 and strongly believe in the technology. My concern is whether IGXT possesses the personnel to best maximize the equity from that technology. I would love to see them bring on an experienced business executive to commercialize all the great technology Dr. Zerbe has created. The stock / technology has a huge potential upside IMO.
