Innovation Pharmaceuticals Inc (IPIX)

[Orion Nebula]

Buccaneer - It is hard to say for sure. Typically companies are not valued at a 1:1 ratio of price to book value (assets- liabilities). The market often applies a premium as it is forward looking. I did a quick check of some pharmas for their P/BV ratios. PFE is at 2.53, J&J is at 3.64, PCYC is at 17.22, Merck is at 2.76. So it seems the more established companies are in the 2 to 3 range while upstarts can be quite a bit higher, depending on how their prospects are viewed by the market. The share count is important because you will want to use the BV per share. The liabilities are pretty nominal at this point for CTIX, but let's say it brings the BV down to 9.99B by using 10M for liabilities. If we use 140M shares the BV/sh =71.35. So, if we use P/B similar to the big companies above, say 2.5, the price would be $178.If you went as high as PCYC for P/BV, it would be $1228. This seems unlikely to me but it is not unreasonable to expect a premium, instead of just a 1:1 ratio. With the excitement and their pipeline, maybe something like 4. That would yield a price of $285. Wouldn't that be nice! No one really knows for sure.