Innovation Pharmaceuticals Inc (IPIX)

[a1derfullife]

How will CTIX fund its operations?

According to CTIX's 2012 10K, they expect to spend ~ $6 million over the next 12 months or so, as detailed below. Since they don't have the money, I'm guessing they'll do a small ($10-20 million) capital raise in the next couple of months. Other options are continuing to sell small amounts of shares or debentures in private sales, or outlicensing Prurisol or Kevetrin. However, a secondary offering appears most likely to me.

A1

Expected expenses over the next 12 months (from 10K)


1 Research and Development- $1,500,000 in preclinical development costs, including costs to manufacture Prurisol.

2 Clinical trials – $3,000,000. We have budgeted $1,500,000 for our Phase 1 Kevetrin trials and $1,500,000 for the Prurisol pilot study and phase 2/3 trials.


3 Corporate overhead of $1,250,000: Budgeted office salaries, legal, accounting and other costs expected to be incurred.

4 Capital costs of $100,000: Estimated cost for equipment and laboratory improvements.